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ARTICLE · 25 OCTOBER 2013

CFTC Taking Comments On Requiring Interest Rate Swaps To Be Executed ON SEFs Or DCMs

On Friday, Javelin SEF made the first "Made Available to Trade" submission (an "MAT Submission") to the CFTC for certain interest rate swaps. Javelin's submission, if not objected to by the CFTC, would cause those interest rate swaps come under the trading requirement, and those swaps would then be required to be executed on a swap execution facility ("SEF") or a designated contract market (unless they fall under the end-user exception).

United StatesFinance and Banking

On Friday, Javelin SEF made the first "Made Available to Trade" submission (an "MAT Submission") to the CFTC for certain interest rate swaps. Javelin's submission, if not objected to by the CFTC, would cause those interest rate swaps come under the trading requirement, and those swaps would then be required to be executed on a swap execution facility ("SEF") or a designated contract market (unless they fall under the end-user exception).

Javelin's MAT Submission would cover USD LIBOR, Sterling LIBOR, & EURIBOR interest rate swaps.

The CFTC determined that Javelin's MAT Submission presented novel or complex issues, providing the CFTC with 90 days to review the MAT Submission. The CFTC also opened the MAT Submission up to public comment. The comment period will end on November 19, 2013.

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