CFTC Announces Trade Execution Mandate on Certain Interest Rate Swaps

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According to CFTC.gov, the Commodity Futures Trading Commission’s Department of Market Oversight has announced that trading platform Javelin SEF, LLC’s self-certification of available-to-trade  determinations (MAT determinations) on several types of interest rate swaps, has been deemed certified.

In accordance with CFTC regulation,  swaps that are subject to MAT determinations, whether listed by Javelin or any other platform, will be subject to the trade execution mandate under a sections of the Commodity Exchange Act about one month after certification (February 15).

For information on which swaps fall under the trade execution mandate, see CFTC.gov.

Many market participants have inquired with the CFTC about trade execution requirements for “package” transactions involving one or more swaps that are subject to the trade execution mandate. The Commission’s current statement is that package deals may not relieve traders from performing package transactions involving one or more swaps subject to the trade execution mandate from performing the transaction on a SEF.

Acting CFTC Chairman Mark Wetjen will be holding a public roundtable discussion dealing with operational issues on creating proper transaction entry and execution technology for package transactions, and will be using public comments to consider under what conditions to allow limited relief to package transactions.