Javelin Taps IPC's Connexus Ahead of Swaps Execution

Nascent derivatives execution platform Javelin, which plans to serve as a swap execution facility (SEF) in the newly regulated environment, will plug into IPC's Connexus financial extranet that includes a variety of interbroker dealers and institutional investors.

The move comes as Javelin—founded in 2009 and one of a handful of alternative venues not affiliated with pre-existing intermediaries in the over-the-counter (OTC) swaps market—prepares to offer both anonymous limit order book (LOB) and request-for-quote (RFQ) execution methods in electronic trading of rate and credit default swaps. Operating on Connexus, the firm says, will allow the new SEF to provide optimal liquidity as well as transparency and market depth.

“We are delighted that IPC is providing connectivity to a diverse pool of market participants seeking direct access to the Javelin trading platform. As the OTC derivatives markets embrace change, it is extremely important for our clients to have reliable and secure connectivity to our platform for trade execution," says Michael Black, Javelin Capital Markets' head of infrastructure.

The announcement comes following a survey from IPC that suggested continued regulatory uncertainty is hampering efforts to establish SEF connectivity. Meanwhile, a TabbForum panel last week touched on fragmentation and aggregation concerns in the proposed ecosystem, kicking off what is sure to be a full year of CFTC rulemaking and debate around the market's future.