CFTC announces trade execution mandate for certain swaps

Trade execution requirements in effect

The following is from the CFTC...

The Commodity Futures Trading Commission’s (CFTC or Commission) Division of Market Oversight (Division) today announced that MarketAxess SEF Corporation’s (MarketAxess) self-certification of available-to-trade determinations (MAT Determination) for certain credit default swap (CDS) contracts is self-certified.

The CDS contracts included in MarketAxess’ MAT Determination were previously determined to be made available to trade as a result of an earlier MAT Determination submitted by TW SEF LLC (Tradeweb) that was self-certified on January 27, 2014. Under Commission regulations, these CDS contracts, whether listed or offered by MarketAxess or any other swap execution facility (SEF) or designated contract market (DCM), will become subject to the trade execution requirement under section 2(h)(8) of the Commodity Exchange Act 30 days after Tradeweb’s January 27, 2014 certification.

All transactions involving swaps that are subject to the trade execution requirement must be executed through a DCM or a SEF. To the extent swaps subject to the trade execution requirement are executed on a SEF, they must be executed in accordance with the execution methods prescribed by Commission regulations.

Transactions involving the following CDS contracts will be subject to the trade execution requirement, effective February 26, 2014.

Specification

Untranched Credit Default Swap Indices

Reference Entities

Corporate

Corporate

Region

North America

Europe

Indices

CDX.NA.IG

CDX.NA.HY

iTraxx Europe

iTraxx Europe Crossover

Tenor

CDX.NA.IG 5Y

CDX.NA.HY 5Y

iTraxx Europe 5Y

iTraxx Europe Crossover 5Y

Applicable Series

At any time, the then-current series and the preceding series that was replaced by the current one.

 Last Updated: January 30, 2014

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