Seed SEF LLC announced today that it has been fully registered as a Swap Execution Facility (SEF) by the Commodity Futures Trading Commission (CFTC).
Seed SEF provides new means for agricultural market participants to hedge risk and for traders to gain exposure to unique, rapidly developing markets. Seed SEF operates in areas where there have been recent regulatory shifts or dramatic market restructurings.
Seed SEF President, Brian Liston, commented that, “We are excited to be registered. Seed SEF is looking forward to continuing its work with agricultural producers, processors and manufacturers on risk management services for the emerging agricultural products that consumers around the world are embracing.” Liston noted that “the staff in the Division of Market Oversight at the CFTC had been extremely responsive.”
CEO Edward Woodford noted that one of the first products will be industrial hemp* derivatives: “For the past year, we have been working closely with farmers and processors around the country to identify the risks that we can address with forwards and options. Because of recent changes in federal law and regulation, industrial hemp presents unique opportunities and risk management challenges in manufacturing, food and health applications that Seed SEF’s products will address.”
Seed SEF has enjoyed the support of the National Hemp Association, the Hemp Industries Association, the Canadian Hemp Trade Alliance and the European Industrial Hemp Association among others.
* Industrial hemp is defined by the US federal government as containing less than 0.3% THC or less. Starting in 2004, the US has become the largest global importer of industrial hemp.
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Seed SEF is a wholly-owned subsidiary of Seed CX Ltd., a Delaware corporation. Seed SEF will operate a trading platform for agricultural derivative contracts, providing risk mitigation tools to cultivate financial security in emerging markets.
SEFs are trading facilities that operate under the CFTC’s regulatory oversight for trading and processing swaps, including forwards and options. SEFs were authorized to be created by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 to provide greater pre-trade and post-trade transparency to the swaps market. There are now 23 SEFs fully registered with the CFTC.
Edward Woodford and Brian Liston co-founded Seed, which is backed by a consortium of Fin-Tech focused venture capital firms and strategic partners including trading firms and farming groups.
For more information, visit www.seedcx.com or follow us on Twitter @SeedCX