The Commodity Futures Trading Commission has requested public comment on determinations by Javelin SEF, LLC (Javelin) and trueEX, LLC (trueEX) to make certain interest rate swaps “available to trade.” Once those determinations become effective, market participants that are not eligible for the “end-user” exception in Section 2(h)(7) of the Commodity Exchange Act would only be able to trade swaps that have been made available to trade (MAT) on a swap execution facility or a designated contract market.
Javelin’s MAT filing covers a broad range of interest rate products, including fixed-to-floating and floating-to-floating swaps referencing US dollar London Interbank Offered Rate (LIBOR), British pound sterling LIBOR and Euro Interbank Offered Rate (EURIBOR). The tenors for such swaps range from 1 month to 51 years.
In contrast, trueEX’s MAT filing covers a much narrower set of interest rate swaps, including fixed-to-floating par coupon and Standard Coupon Standard Maturity swaps referencing US dollar LIBOR. The tenors for such swaps are set at 2, 3, 5, 7, 10, 15, 20 and 30 years or 1, 2, 3, 5, 7, 10, 15, 20 and 30 years, respectively.
Javelin and trueEX filed their respective MAT determinations as rule certifications subject to a 10-day review period. Pursuant to CFTC Regulation 40.6(c), the CFTC issued a 90-day stay on both MAT filings, which includes a 30-day public comment period for each filing.
The comment period for Javelin’s filing closes on November 19, 2013; the comment period for trueEX’s filing closes on November 21, 2013. Comments may be submitted electronically through the CFTC’s website comment submission portal.
Javelin’s MAT filing is available here.
trueEX’s MAT filing is available here.