The CFTC has published the first set of interest rate swaps that must be traded with increased transparency on swap execution facilities and exchanges under the 2010 Dodd-Frank law.
The CFTC Division of Market Oversight certified a list of interest rate swap contracts proposed by Javelin SEF, LLC. As a result of the certification, transactions involving the listed swaps will be subject to the trade execution requirement, effective February 15, 2014.
Separately, various market participants have submitted comments regarding the implementation of the trade execution requirement with respect to “package transactions.” The CFTC clarified that the inclusion of a swap subject to the trade execution requirement in a package transaction would not per se relieve market participants of the obligation to trade such swap through a DCM or SEF.
The CFTC will hold a public roundtable on execution issues related to package transactions.