trueEX Becomes CFTC's First Designated Contract Market (with Lofchie Comment)

The CFTC approved the application of trueEX LLC for designation as a contract market in interest rate swaps. It will be the first designated contract market permitted to trade swaps. Clearing services for trueEX will be provided by the CME; regulatory services will be performed by the NFA. trueEX has indicated that initially it intends to list for trading interest rate swap contracts. Swap data repository services will be provided by DTCC Data Repository LLC.

Note that as the products for which trueEx provides trading facilities become subject to mandatory clearing, they will also become subject to mandatory exchange trading.

Lofchie Comment: On a separate note, I wish that the CFTC would impose a rule against eccentric capitalization, leaving this bit of cleverness to poems by E.E. Cummings. I have no doubt that such a rule could survive a cost-benefit analysis given the number of legal documents that will be required to be checked to confirm the spelling.

View order here(links externally to CFTC website).See also: CFTC Press Release; CFTC Letter to trueEX approving the request.