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New Swaps-Trading Venue, KerbX, in the Works

A new platform for trading in off-exchange derivatives is preparing for launch, specializing in equity derivatives. KerbX is leaning toward registering as a "swap execution facility," a new type of trading platform for derivatives that was authorized under the 2010 Dodd-Frank financial overhaul law, said Joshua Seitz, one of the New Jersey-based company's founders. But it may register as an exchange or "designated contract market." Under Dodd-Frank, SEFs can be used as an alternative to exchanges for swaps, whereas DCMs will be allowed to cater to trading in futures and swaps. Dodd-Frank...

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