Tag Archives: Regulation

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.… Read More »

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… Read More »

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… Read More »

October 2nd Should Be Boring (Unless the CFTC Kills Electronic Trading)

On October 2 the CFTC’s swap execution facility (SEF) rules are scheduled to finally take effect. It’s amazing that we’ve finally gotten to this point, given I wrote my first piece about SEFs in 2010, a few months after the signing of Dodd-Frank. While the day is technically historic, don’t expect to anything exciting to… Read More »

Greenwich: Fixed Income Investors Grapple with New Regulations and Rising Rates

Each year Greenwich conducts a North American Fixed Income study. This year we conducting 1027 interviews of buy side portfolio managers and traders about everything from corporate bonds to agency pass-throughs to interest rate swaps. As I’m new to Greenwich this is my first time really digging into the results, and (although I’m now a… Read More »

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… Read More »

How Capitalism and Technology Can Fix the Equity Market

Free-market capitalism will ultimately lead any marketplace to its ideal state. Over the past half-decade this principle has driven my hypothesis that regulators should not try to stymie trading strategy and technology innovation, but should instead follow a principles-based approach (see the CFTC c. 2007) that prevents fraud while still allowing competition to carry on… Read More »

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… Read More »