Securities Regulation Daily Wrap Up, SWAPS—CFTC certifies second “made available to trade” swaps determination, (Jan 23, 2014)

By Amanda Maine, J.D.

The CFTC’s Division of Market Oversight announced that it has certified trueEx, LLC’s self-certification that certain interest rate swap contracts are “made available to trade” (MAT). Under CFTC rules, transactions involving swaps subject to the trade execution requirement must be executed through a designated contract market (DCM) or swap execution facility (SEF).

The CFTC’s action is the second time it has certified a self-certified MAT determination under its MAT approval process. Last week, the CFTC certified Javelin SEF, LLC’s self-certified MAT determination, although Commissioner Scott O’Malia voiced his objections to the certification and to the process itself (see story in the January 17, 2014, issue of Securities Regulation Daily). This certification includes some of the interest rate swap contracts made available to trade in the CFTC’s Javelin order.

Swaps transactions subject to the determination will now be subject to the trade execution requirement, which mandates that they be executed through a DCM or an SEF. The certification will be effective for the previously certified transactions on February 15. The certification will be effective for the other named transactions on February 21.

Companies: trueEx, LLC; Javelin SEF, LLC

RegulatoryActivity: Swaps CFTCNews Derivatives