The US Commodity Futures Trading Commission (CFTC) has announced that made available to trade (MAT) submissions from both trueEx and Tradeweb have been certified, meaning those instruments must be traded on swap execution facilities (SEFs) from February.
The two separate submissions cover credit-default swaps, interest-rate swaps, and other swaps that are now MAT in addition to those proposed ─ and later certified by the CFTC ─ by Javelin earlier this month.
Under CFTC rules, the instruments are MAT 30 days after the determination is made, and as such, trueEx's derivatives are mandatory for SEF trading from February 21, while Tradeweb's come into force on February 26. Javelin's submission is MAT on SEFs from February 15 onwards.
MAT is a critical component of the new derivatives trading landscape in the US. SEF operators have been given the ability to determine which instruments are suitable for trading on the utilities, which introduce an intermediary platform into previously bilateral swaps trades, in an effort to enhance market transparency. The policy has come under criticism from some quarters, with many saying that it is peculiar that the CFTC has delegated its regulatory authority in this way, and essentially reduced itself to rubber-stamping applications.
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