Integral Development says it has upgraded its service to facilitate liquidity provider compliance with the two most prominent requirements of the External Business Conduct Standards (EBCS) in time to meet the May 1 deadline.
The rules promulgated by the U.S. Commodity Futures and Trading Commission (CFTC) state that by that date, the Pre-Trade Mid-Market Mark and the Static Material Economic Terms requirements will go into effect. Integral says it is the first of any FX solutions provider to proclaim readiness for both, however bank liquidity providers have mostly been compliant ahead of the deadline on their single dealer platforms as far as mid-rates are concerned.
One of the requirements of CFTC regulation 23.43 mandates that liquidity providers disclose a Pre-Trade Mid-Market Mark prior to trade execution in addition to bid/ask prices. Integral has made the necessary enhancements to all its trading applications.
“We are proud to announce that Integral has the technology solutions in place that enable liquidity providers on FX Grid to be in compliance; ahead of stated deadlines,” says Harpal Sandhu, CEO, Integral Development Corp. “We consider it part of our commitment to customers that we do whatever we can to allow them to conduct their business in a regulatory compliant way without interruption.”
Also an element of the EBCS, liquidity providers are required to publish their respective relevant static material economic terms when offering swap contracts. All Integral services and partner liquidity providers are in compliance ahead of the deadline.
The EBCS is a rule that the CFTC drafted in response to requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act.