The Dodd-Frank Act combined with a raft of CFTC rules have created a complex derivatives trade reporting ecosystem in the United States as shown below in this infographic.
The major trading counterparties have not really changed their position in the U.S. derivatives trading and reporting ecosystem after Dodd-Frank. Tier 1 Banks and Broker Dealers are still the hub of trading activity, serving smaller banks, corporations, hedge funds, insurers and asset managers. The dotted lines indicate potential intra-group trading where banks and asset managers execute trades through their own affiliated broker dealers.
The new arrivals are the Swap Execution Facilities. These are pure derivatives trade matching engines that provide price transparency and alternate liquidity venues for market participants. SEF notional and trade volumes have been increasing significantly at BGC SEF, Bloomberg SEF, MarketAxess SEF and others.
Downstream are the CCPs like the CME and clearing houses such as ICE Clear Credit and LCH.Clearnet. Again, there is a dotted line to represent an affiliation at the CME between the swap exchange (liquidity and trade matching) and the clearing function. This does not exist for pure clearing houses such as LCH.Clearnet.
The Swap Data Repositories are the final destination in the new U.S. derivatives trade reporting workflow. The trade repository function in the U.S. is served by DTCC DDR, Bloomberg SDR, CME Trade Repository and ICE Trade Vault.