US Swap Execution Facility Javelin SEF went for Scila Surveillance

Scila enters the US market for trade surveillance technology by delivering Scila Surveillance to Javelin SEF LLC. Javelin SEF is one of the Swap Execution Facilities founded under CFTC regulation regarding swap trading, and recently received CFTC approval as a multi asset swap execution facility (SEF).

Swap trading marketplace Javelin SEF has complemented its execution model with Scila Surveillance. The surveillance system supports market integrity for this new market class under coming regulations emanating from the Dodd-Frank Act.

“Our priority is to implement a market surveillance system that not only meets the monitoring requirements of the SEF new regulations, but also exceeds Javelin’s own internal expectations of high levels of trading integrity to protect its customers,” says James Cawley, CEO of Javelin. “Because of new rules, the OTC derivatives marketplace has already begun to transition to transparent swap execution venues. This transition means that market participants will now enjoy new levels of market transparency and fair dealing on regulated SEFs. Javelin SEF is pleased to partner with Cinnober and deploy the Scila Surveillance system for trading on Javelin SEF.”

Scila Surveillance is a market surveillance system designed for marketplaces and regulators. The solution has achieved great success, thanks to its flexibility, its ability to handle a variety of instruments, ease of use, short implementation time and the use of open standards technologies, resulting in a low total cost of ownership for the customer.

“At Scila we are delighted to deliver our surveillance software to our first US customer, Javelin SEF” says Scila’s Executive Chairman Lars-Ivar Sellberg. “Javelin SEF operates in a new and innovative market. We find it exciting to be part of this new development, and we are confident that the flexibility and adaptability of Scila Surveillance will prove to be very efficient in this environment”.

The US-based marketplace Javelin SEF is a subsdiary of Javelin Capital Markets. Javelin Capital Markets was founded in 2009 by derivative trading and technology professionals. The company created a swap trading platform in response to the changing market structure in derivatives as a result of the 2008 banking crisis. Javelin SEF has delivered an execution model that supports the needs of its customers and dealers, while satisfying current regulatory requirements for safe and transparent markets. Offering low cost, real time trade execution for Interest Rate, as well as both anonymous Limit Order Book and Request for Quote execution.

Javelin SEF recently received approval of an initial SEF registration from the U.S. Commodity Futures Trading Commission. The creation of SEFs is a direct result of the recent financial crisis and the new regulations that were introduced as a consequence. The goals of the new regulatory framework are to reduce risk, increase transparency and promote market integrity in the financial system. These goals are to be accomplished by establishing a system for the registration and regulation of swap dealers and major swap participants. Other strategies include creating execution and clearing requirements on standardized derivative products, imposing robust and real time reporting requirements, and, finally, enhanced regulatory oversight of the swaps market. The new regulation also requires that market operators conduct surveillance for market integrity of their markets.

For more information

Lars-Ivar Sellberg
Executive Chairman
Phone +46 733 47 87 10

About Javelin Capital Markets Founded in 2009, Javelin Capital Markets, LLC (www.thejavelin.com) is a derivatives execution platform for Interest Rate Swaps. Javelin SEF offers both anonymous electronic and voice-hybrid methodologies for trade execution. Javelin SEF works with several execution partners to ensure optimal liquidity for its diverse customer base. Javelin SEF is one of the first platforms to register as a SEF, or Swap Execution Facility, under the Dodd Frank Act with the CFTC.

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About Scila AB Scila is a FinTech company based in Stockholm, Sweden, but we act globally. Scila provides trading surveillance products built on many years of experience from both market surveillance and systems design. Scila systems use modern technology to give the customer a seamless route from detection of market abuse to presentable evidence. Scila delivers the future in modern market surveillance technology by offering trading venues, regulators and market participants the most competitive solution available.
For additional information about Scila AB, please visit www.scila.se