NEW YORK, NY. January 16th, 2014. Javelin SEF announced today that the CFTC has certified its Made Available to Trade Submission (“MAT Submission”) of Interest Rate Swaps thereby requiring mandatory trading of swaps on SEFs or exchanges.
“This is clearly a landmark event for the $400 Trillion swaps market and is one of the largest structural events for any capital market in 20 years” said James Cawley, CEO of Javelin Capital Markets.
Javelin’s MAT certification begins a final 30 day clock that, upon its expiration, will require the majority of swaps to trade on a Swap Execution Facility (“SEF”), such as Javelin. Specifically, Javelin certified certain US dollar and Euro denominated benchmark swaps with the following maturities: 2 year, 3 year, 5 year, 7 year, 10 year, 12 year, 15 year, 20 year and 30 year. Javelin also certified certain forward or IMM interest rate swaps.
Trading on interest rate swaps on SEFs is expected to increase transparency, ease operational risk and ensure trade certainty post the Financial Crisis of 2008.
Unless the customer is exempt or the trade is in block size, market participants are required to trade all such interest rate swaps subject to Javelin’s MAT on a SEF by February 16th, 2014.
“We are excited to be first, but truly the heavy lifting began some time ago to onboard customers and dealers, large and small, to ensure as little market disruption as possible.”
Javelin SEF, LLC is a subsidiary of Javelin Capital Markets, LLC which was founded in 2009. Javelin Capital Markets is a derivatives trading venue that focuses on the execution of Interest Rate Swaps and Credit Default Swaps through its subsidiaries. Javelin works with several execution partners to ensure optimal liquidity for its diverse customer base. Javelin SEF is one of the first platforms to register as a Swap Execution Facility under the Dodd Frank Act 2010 with the CFTC.
Javelin offers both limit order book trading and request for quote trading on either a disclosed or anonymous basis. Javelin supports the goals of the Dodd Frank Act of 2010 and recognizes that the mandatory execution of swaps on Swap Execution Facilities is critical to promoting pre-trade transparency, market liquidity and competition in the swaps market. For more information, please see www.thejavelin.com.