The bumpy launch of the Commodity Futures Trading Commission’s new derivatives trading platform just got bumpier, reports the Financial Times.

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“[T]he new system [is] designed to shift more trading from opaque bilateral deals to new platforms – or ‘swap execution facilities.’ These Sefs are designed to increase price transparency and competition to a clique of large banks that have dominated the arena.

“However, SEC officials contacted participants on Wednesday and warned them that Sefs should not be used to trade certain products because they might fall in to the SEC’s jurisdiction and should only be traded on traditional exchanges, according to three people familiar with the situation,” explains the report.

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