The Commodity Futures Trading Commission has announced that both TrueEX and Tradeweb MAT Submissions, or made available to trade submissions, have been certified by the CFTC’s Division of Market Oversight.
The certification means that certain swaps handled by both TrueEx and Tradeweb will now fall under the trade execution mandate, and will now have to be traded over swap execution facilities (SEFs).
This makes three trading platforms that have been certified by the CFTC this month, with Javelin Capital Markets LLC being certified a few weeks ago.
MAT Submissions that fall under the CFTC’s trade execution requirement will now have to be traded through swap execution facilities (SEFs). Though not immediately, traders will have 30 thirty days to comply after certification. Having each been certified at different times, each trading platform’s certified swaps will fall under the trade execution at different times: February 15 for Javelin, February 21 for TrueEx, and February 26 for Tradweb.
For a more detailed list of which swaps fall under the trade execution mandate within each platform, see the CFTC’s website here for Javelin, here for TrueEX, and here for Tradeweb.
The CFTC is utilizing SEFs as an intermediary between traders in an effort to bring more transparency to the market; however, some feel as though the CFTC allowing trade platforms to decide which items are suitable for trading on SEFs is diminishing the Commission’s authority and oversight within the market.