Market participants to leverage the Connexus financial extranet to trade cleared interest rate derivatives and credit default swaps
IPC Systems, Inc., a leading provider of voice and electronic trading communications solutions to the world’s top financial services firms, today announced that they have added Javelin Capital Markets LLC (“Javelin”), an OTC derivatives execution platform, to IPC’s Connexus Financial Extranet service.
Under the Dodd-Frank Act, the Commodities Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) are responsible for writing the rules that will regulate the OTC derivatives market and for changing what has been mostly a privately negotiated market into a more transparent, electronic marketplace. Firms will need to establish and maintain constant connectivity in order to retain access to liquidity. Javelin has chosen IPC’s Connexus platform to enable its customers to not just comply with regulations but to also capture liquidity, achieve best execution and gain a strategic advantage in the rapidly evolving landscape for OTC derivatives.
Javelin was founded in 2009 by derivative trading and technology professionals. Since then, Javelin has created a Swap Execution Facility (SEF), a platform for regulated trading of swaps, in response to the changing market structure in OTC derivatives as a result of the global financial crisis. Javelin’s SEF offers low cost, real time trade execution for Interest Rate and Credit Default Swaps, with both anonymous Limit Order Book and Request for Quote execution combining optimal liquidity with 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,” said Michael Black, Head of Infrastructure, Javelin Capital Markets. “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.”
“As the market structure for OTC derivatives continues to evolve, IPC is providing its customers with solutions that help their clients seize alpha generation opportunities,” said Joe Pickel, vice president, Network Services Product Management, IPC. “As electronic trading in interest rate and credit default swaps flourishes having Javelin Capital Markets as a liquidity venue destination on Connexus will provide market participants with the flexibility required to trade these rapidly growing asset classes.”
IPC has been rapidly developing a community of market participants in the OTC derivatives market that includes broker-dealers, inter-dealer brokers, derivative execution venues and major institutional investors. Connexus is part of the IPC Financial Markets Network service portfolio which also includes private extranet and Direct Connect data services, as well as Trader and Enhanced Voice communications services. IPC’s Financial Markets Network interconnects global financial centers and allows access to more than 4,000 market participant locations in over 700 cities in nearly 60 countries. Built on an IP/MPLS backbone, the highly scalable and secure Connexus supports a number of industry standard and trading protocols.