By Katy Burne
Gary Gensler, chairman of the Commodity Futures Trading Commission, at a hearing Tuesday praised Javelin Capital Markets for showing that central clearing of off-exchange derivatives, or "swaps," can be cleared in seconds, as new rules being crafted the CFTC will require.
Gensler hinted that dealer banks were resisting the rules and noted that he had not seen something similar from the International Swaps and Derivatives Association, the trade association for the multi-trillion-dollar swaps markets. "ISDA knows how to make something part of the record," said Gensler.
"It's an association of some of the most powerful, well-funded organizations that are thoughtful." Javelin is an aspiring "swap execution facility," a new type of trading venue allowed under the regulatory overhaul.