As part of the far-sweeping and long-reaching regulation that is the Dodd-Frank Act, more and more derivatives trading must be done via central clearing houses. This week another electronic exchange has come online as Javelin Capital Markets opened its Sef platform for trading of U.S. Dollar swaps.
“We are open for business and trading interest rate swaps one day before the mandate starts,” said James Cawley, Javelin chief executive.Star hedge fund macro trader Colin Lancaster warns: Inflation is back
Talk of inflation has been swirling for some time amid all the stimulus that's been pouring into the market and the soaring debt levels in the U.S. The Federal Reserve has said that any inflation that does occur will be temporary, but one hedge fund macro trader says there are plenty of reasons not to Read More
Javelin said that 13 of the 17 dealers doing business in these swaps were available via Sef. Much of the imposed regulation regarding central exchanges has been delayed so that participants can ready themselves. European regulators had also asked the CFTC to postpone some implementation as to not hamper operations of foreign platforms dealing with U.S. banks.
Given the recent troubles of established U.S. electronic markets for stocks, options, and futures, let’s hope these new markets have fewer glitches and do not become the new high frequency trading breeding grounds.