Voice Order Submission (VOS)
Javelin SEF’s Voice Order Submission (VOS) capability allows orders meant to be crossed to be submitted to Javelin SEF using an order entry system developed by Javelin SEF. The negotiation of the orders may occur away from the SEF, however, the trade match occurs on Javelin SEF and must adhere to a specific set of CFTC requirements for crossed orders involving interest rate swaps that have been made available to trade (MAT Swaps) that are executed through an order book. Javelin SEF has functionality to ensure that these requirements are met while allowing seamless execution for trades that are matched in this fashion.
RFQ to One for Permitted Trades
For permitted transactions (i.e., swaps that are not Mat Swaps) that are executed via a Request For Quote (RFQ) system the CFTC does not require that trades be sent to a minimum of 3 market participants as is the case with required transactions. Javelin SEF is in the process of building the technology to identify whether a transaction is permitted or required under the CFTC’s SEF rules. Once this technology is in production, Javelin SEF’s RFQ will allow an RFQ-to-1 if the proposed transaction is determined to be a permitted transaction. This capability limits any information leakage due to the dissemination of pre-trade information since only one dealer sees the trade inquiry.
Block Trade Submission
Javelin SEF’s block trade submission capability fully complies with regulations regarding the proper sequence in which a block trade must be processed. Javelin SEF's block trade submission capability permits pre-trade credit checks to occur during the negotiation of a block trade, prior to submission to Javelin SEF (i.e., the negotiation and completion of trade occurs 'Off SEF'), and then permits the submission of the executed block trade to Javelin SEF for clearing and swap data reporting. Any interest rate swap structure available in Javelin SEF's highly flexible RFQ is eligible to be traded as a block. As with CLOB and RFQ systems, no post-trade affirmation is required. A MarkitWire drop copy is available upon request.
Javelin SEF’s high degree of flexibility allows for voice-assisted electronic trading with Javelin SEF's electronic CLOB and RFQ system. Javelin SEF has an experienced team of authorized employees available to facilitate order execution or to source liquidity.
Using this capability, a customer may call Javelin SEF’s Voice desk, and an Authorized Employee (AE) will enter an order into the electronic CLOB or RFQ on behalf of the customer. The AE can communicate back by phone or IM, and the customer can monitor the order electronically using Javelin SEF’s GUI.
Javelin SEF also offers a voice marketplace for execution of interest rate swaps. Javelin SEF has an experienced team of authorized Employees who will source liquidity and match orders by voice. A customer may enter an order into Javelin SEF’s voice marketplace by calling Javelin SEF’s voice desk.