Last week was a busy week in SEF land. November 1 brought in to play a host of new rules, the MAT wars heat up and the Commission made the void rule even more confusing than it was before. So where has that left us? With a huge drop in SEF volumes and a bunch […]
Tag: CFTC
The Void Rule No-Action makes No-Sense
OK, so not all of it. On Friday at 5:55pm (which I guess is better than 11:59p on October 31) the CFTC issues somewhat expected no-action relief for parts of the SEF rules set to take effect on Friday November 1. It focuses on the so-called Void Rule (discussed in an earlier post), and states […]
MAT the MACs, or MAT Everything – Let’s Vote
trueEX yesterday filed their MAT application to start a CFTC review process alongside the one underway for Javelin’s application. This will add a huge amount of fuel to the debate on whether or not all points in the rate curve should be mandated for trading out of the gate (Javelin) or only the most standard […]
Roll Out the Welcome MAT
On Friday afternoon Javelin SEF filed the first made available-to-trade application with the CFTC (thanks Jamie for making us all scramble around on a Friday afternoon!). This is great news. The ball is rolling that will make SEF trading volumes finally matter. But of course, as with everything derivatives reform, things are not yet cut and dry. […]
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. In addition to the lack of reporting standards which complicate doing an apples to apples comparison (i.e. voice vs. electronic, D2D vs. D2C, FRAs vs. IRS), the […]
The Economist: Not with a Bang
I talked to an Economist reporter based in Paris on Wednesday (October 2) about what the first day of SEF trading means to the market. I think the key point to note on the quote below is that we’re talking about the day 1 impact. The longer term impact on the the market I believe […]
SEF Day: A boring October 2 is official, but in 10 seconds or less
Quite a lot of hoop-la on Friday (September 27, 2013) around the October 2 SEF implementation deadline. On that point, the response to my post on the CFTC de-electronifying the market has been mostly positive. And it looks like the CFTC decided to listen to all of us wanting October 2 to go smoothly, providing […]
Speaking at the OTC Derivatives Summit in NY: 2-day VAR vs. 5-day VAR
Today (Sep 17, 2013) I’m moderating a swap futures panel at the Institutional Investor Fixed Income Forum event in Westchester County. For those of you keeping score at home that’s two swap futures panels in two days. We have a great lineup (Citi, Vanguard and CME) but will be one less than expected. Our CFTC […]
Determining if SEF Aggregation Really Matters
This post also published at TabbFORUM.com Regulations will have a significant impact on how SEF aggregators function and how widely these aggregators will be adopted by various market participants. Some of the most contentious rule proposals are those that will have the greatest impact on liquidity fragmentation. They include the 15-second rule, the ability to […]
Regulators Approve a New Window Into 'Swaps' (Wall Street Journal)
It seemed like the CFTC’s meeting yesterday (Dec 12th) would be a big one; we’d find out the size of a block trade and in doing so get some insight into how truly electronic the swaps market would become. Â Unfortunately, the can has been kicked down the road again. Â Instead we have a […]