NEW YORK, NY. February 18th, 2014. Javelin Capital Markets today announced that it has connected to nine individual clearing firms to facilitate the post-trade clearing of interest rate swaps on the Javelin Swap Execution Facility.
Under new market regulations, market participants must now clear interest rate swaps at clearing houses and trade various interest rate swaps on Swap Execution Facilities. Javelin SEF can now send customer trades for clearing acceptance at LCH or CME to the following clearing firms: Bank of America, Barclays, Citigroup, Credit Suisse, HSBC, JP Morgan, Newedge, Nomura and RBS.
“These clearing firms represent the lion share of the interest rate swap clearing market today. We are very pleased to be able to offer trading solutions to customers clearing through these market leaders,” said James Cawley, CEO of Javelin.
Using certain direct or third party platforms, customer orders placed on Javelin are now able to be credit checked in real time against risk based limits administered by these clearing firms in full compliance with CFTC regulations.
To complement such pre-trade functionality, Javelin offers direct connectivity to the clearing houses for real time trade processing in addition to offering customers several post-trade solutions, including Markitwire trade confirms.
“At the onset of the new regulatory trading era for OTC derivatives, we are delighted to support our clearing clients that have chosen Javelin based on their assessment of its execution quality, which reflects our ongoing commitment to provide customers with maximum flexibility in fast changing markets" said John Wilson, Global Head of OTC Clearing at Newedge.
Javelin SEF, LLC is a subsidiary of Javelin Capital Markets, LLC which was founded in 2009. Javelin Capital Markets is a derivatives trade 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.