Javelin SEF Streamlines its Interest Rate Swap MAT Submission Citing Operational Readiness Concerns

Javelin SEF announced today that it has amended its Made Available to Trade submission (“MAT Submission”) of Interest Rate Swaps to the Commodity Futures Trading Commission.

Based on feedback Javelin received from a broad group of institutional buy-side firms, Javelin has streamlined its MAT submission to the CFTC to include only benchmark Dollar and Euro swaps along with certain IMM swaps.

James Cawley, CEO of Javelin Capital Markets, said “what has become clear is that considerable operational hurdles remain as the market prepares for the swap trading mandate. Starting with benchmark swaps is the only thing that makes sense right now.  We can discuss Day Two only after we have safely got past Day One.”

Javelin also determined that insufficient visibility currently exists, on many operational fronts, to commit to a future timetable for a phasing in of additional swap instruments at this time.

Accordingly, Javelin has narrowed its MAT Submission to the CFTC to focus on the following benchmark swaps:

  • USD Spot Starting Benchmark Rates: 2, 3, 5, 7, 10, 12, 15, 20, 30 years
  • USD Spot Starting Benchmark Swap Spreads (versus US Treasuries): 2, 3, 5, 7, 10, 30 years
  • EUR Spot Starting Benchmark’s 2, 3, 5, 7, 10, 15, 20, 30 years.
  • USD IMM with an effective date on either the next two quarterly IMM dates which start in the months of March, June, September or December exclusively.

In addition, certain compound strategy transactions, which include one or more instruments, are specifically excluded from Javelin’s MAT submission.