NEW YORK, NY. October 18, 2013. Javelin SEF announced today that it has submitted its Made Available to Trade submission (“MAT Submission”) of Interest Rate Swaps to the Commodity Futures Trading Commission (“CFTC”) pursuant to Section 5c(c) of the Commodity Exchange Act and Section 40.6(a) of the Commission’s Regulations.
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.
James Cawley, CEO of Javelin Capital Markets, said “this is the natural next step for a derivatives market that already enjoys trade reporting and broad clearing. Javelin has gone first—we expect others to follow.”
As the Commission has already noted, increased liquidity in swaps, resulting from SEF trading, will greatly assist the Designated Clearing Organizations in internal risk management procedures particularly in mitigating the liquidity risk associated with the unwinding of a portfolio of a defaulting clearing member.” The CFTC has already recognized that SEFs have “sufficient expertise and experience with respect to swaps trading to make an initial determination and to submit that determination to the Commission under the part 40 procedures.”
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. For more information, please see www.thejavelin.com.