Although it is not required under Dodd Frank rules, swap dealers have historically engaged in "name giveup" for trades executed on SEFs. One the one hand this practice is understandable given the significant credit component of swaps pricing (the identity of the counterparty matters), but contrary to the Dodd Frank requirement of central limit order books for SEF trading. It will be fascinating to watch this battle between dealers and regulators unfold.
Dealers could be starting to loosen their grip on the practice of revealing counterparty names on derivatives traded on swap execution platforms - an apparent reversal of sentiment. Name give-up has continued to exist because supporters say dealers need their own pool of liquidity as a means of hedging the complicated bespoke risks that they provide to clients in the OTC swaps market. Further, banks fear buyside firms entering dealer-only pools of liquidity could send requests-for-quote for complicated trades in one place and then trade anonymously elsewhere. Dealers warn they will not be able to provide the same type of risk to clients on the front end if order books become fully anonymous - they will have to increase prices in order to compensate for the extra risk. But detractors say this is little more than scaremongering.