Trading News

Credit Default Swaps Run Out of Road

In 1994, bankers at JPMorgan Chase came up with the canny idea of selling off some of the risk of their loans by striking insurance-like deals with other banks and financial institutions. In return for paying some fees, JPMorgan was able to effectively unload much of its credit risk and save on capital costs. FT: Credit default swaps run out of road

Global Swaps Market Faces Fragmentation

The global swaps market faces fragmentation as US institutional investors shy away from electronic marketplaces and investment banks strengthen their overseas operations. FT: Global swaps market faces fragmentation

SEFs

Why SEF Volumes Don't Matter (Yet)

On October 2 swap execution facilities (SEF) became official and started reporting trading volumes.  While this new level of transparency is exciting, today’s reported volumes don’t really matter. Kevin On The Street: Why SEF Volumes Don’t Matter (Yet)

SEFs – Ahead of the Curve?

As the US market approaches the third week of trading on swap execution facilities, volume figures suggest the buy-side has not yet fully embraced the new venues. The Trade: SEFs – Ahead of the curve?

What the SEF Volumes Show: Week 2

Week 2 of the new order in OTC derivatives execution is behind us.  It’s been labeled by the media as anything from a false start, to a whimper, to a huge success. ClarusFT: What the SEF Volumes Show: Week 2

CFTC’s Division of Market Oversight Provides No-Action Relief to Applicant Seeking Temporary Registration as a Swap Execution Facility

Time-Limited No Action Relief Provided to LatAm SEF, LLC Pending Consideration of Application. CFTC Press Release: CFTC’s Division of Market Oversight Provides No-Action Relief to Applicant Seeking Temporary Registration as a Swap Execution Facility.

Javelin Seeks CFTC Permission to Trade Interest-Rate Swaps, Spurring SEF Shift

• Read the official submission here: Javelin Determination of Made Available to Trade of certain Interest Rate Swaps made Pursuant to Parts 37 of the Rules of the Commodity Futures Trading Commission (Submission No. 13-06)
• The CFTC press release: CFTC Seeks Public Comment on Certification from Javelin SEF, LLC to Implement Available-to-Trade Determinations for Certain Interest Rate Swaps
• Bloomberg: Javelin Files to Trade Interest-Rate Swaps, Spurring Sef Shift