Ready, SEF, Go

If 2013 was the year we spent forming our responses to the new rules for the derivatives industry, then 2014 will be the year we see if we got it right. Regulation Matters: Ready, SEF, Go.

CFTC Confirms IRS SEF MAT Live Date of Feb 16

As expected, CFTC approved Javelin's MAT submission last Thursday Jan 17 and in effect booked a Feb 16 go live date. The OTC Space: CFTC Confirms IRS SEF MAT Live Date of Feb 16.

CFTC Approves Javelin’s MAT Submissions – Whilst O’Malia Calls the Rules ‘Flawed’!

The CFTC has just approved Javelin’s “self certified” list of Made Available to Trade (MAT) interest rate swap contracts. This means that from 15th February, in 30 days time, these products will be mandated to trade on SEFs or DCMs, and nowhere else.

• Single Dealer Platforms: CFTC Approves Javelin’s MAT Submissions – Whilst O’Malia Calls the Rules ‘Flawed’!
• DerivAlert: Made Available to Trade: CFTC Certifies Certain Interest Rate Swaps
• CFTC Press Release: The CFTC Staff Announces Trade Execution Mandate for Certain Interest Rate Swaps Javelin SEF, LLC's Available-to-Trade Determinations Are Deemed Certified
• The Trade News: Javelin Gains MAT Approval as Chief Outlines Wider Plan.

MAT Summary: CFTC Swap Exchange-trading Mandates and Effective Dates

The CFTC certified further trade execution mandates under Title VII of the Dodd-Frank Act requiring that certain CDS and additional interest rate swaps be entered into only on a CFTC-registered SEF or DCM beginning in February 2014. Practical Law: MAT Summary: CFTC Swap Exchange-trading Mandates and Effective Dates.

SEFs – Nothing Short of Technology Marvels

Its true.  If you step back and think about it for a minute, the work carried out over the past four years to create an electronic swaps market almost from scratch is pretty amazing. Kevin On The Street: SEFs – Nothing Short of Technology Marvels.

The Long Arm of the SEF

Warning: Both market participants and their customers that transact on a swap execution facility, directly or indirectly, are subject to that SEF's rules. And the rules may be different on each SEF. Tabb Forum: The Long Arm of the SEF.

We'll Connect to Only Five or Six SEFs, Say Buy-Siders

If the two buy-side representatives from a Tabb Group conference panel are typical, then firms are not interested in connecting to all 22 swap execution facilities (SEF) on the market. Waters Technology: We'll Connect to Only Five or Six SEFs, Say Buy-Siders.

What's Happening with ECNs?

Last year saw a proliferation of new FX venues with no less than five FX ECNs going live, as well as some important changes to trading protocols of existing ECN venues. Single Dealer Platforms: What's Happening with ECNs?

JP Morgan Takes $1.5 Billion FVA Loss

The US bank announces a one-off FVA primarily due to uncollateralised derivatives receivables.

• Risk: JP Morgan Takes $1.5 Billion FVA Loss
• Deus Ex Macchiato: So What Exactly Is the Rate You Are Borrowing At to Fund That Derivative?

Global Regulatory Changes Signal a Tectonic Shift for Derivatives Trading and Banks

The center cannot hold! The day of banks making over-size profits from trading OTC derivatives, which comprised some 37% of banking revenue in 2010, is over. Risk Articles: Global Regulatory Changes Signal a Tectonic Shift for Derivatives Trading and Banks.

Fixed Income Trading Paradigm Upheaval: Banks Restrict Principal Market Making | TABBfixed Conference

The fixed income (FI) trading markets are evolving faster today than within living memory – according to panelists and speakers at Tabb's Annual conference Fixed Income 2014: Breaking Rates at the Times Center, Manhattan on Thursday January 16th. The OTC Space: Fixed Income Trading Paradigm Upheaval: Banks Restrict Principal Market Making | TABBfixed Conference.

Interest Rate Futures Finally Look Set to Take Off

It is demand from banks and primary dealers that is expected to give the initial boost. Live Mint: Interest Rate Futures Finally Look Set to Take Off.

Traders Faces European Repository Rerun

Buried within the latest European proposals on curbing risky trading by banks are two issues that may strike dread into the heart of every trading executive. FT: Traders Faces European Repository Rerun.

The Whole Package

The CFTC continues to approve MAT self-certifications, most recently Tradeweb’s. Regulation Matters: The Whole Package.

The Incredible Shrinking Credit-Default Swap Market

Five years after almost blowing up the global economy and eight years after making fortunes for Wall Street traders, the credit-default swap market is quietly fading. Business Week: The Incredible Shrinking Credit-Default Swap Market.

ICAP Plans US Electronic Swaps Venue

ICAP has applied to operate a US electronic swaps trading venue overseen by UK regulators, stepping up its moves to address sweeping US laws governing the over-the-counter derivatives market. FT: ICAP Plans US Electronic Swaps Venue.