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.
About Javelin Capital Markets
Javelin Capital Markets, LLC was formed in 2009 as a derivatives execution platform for Interest Rate Swaps and Credit Default Swaps. Javelin offers both anonymous electronic and voice-hybrid methodologies for trade execution. Javelin works with several execution and agency swap partners to ensure optimal liquidity for its diverse customer base. Javelin will register as a SEF, or Swap Execution Facility, under the Dodd Frank Act as soon as the SEF rules are finalized. For more information, visit www.thejavelin.com
IPC offers high- and low-touch trading communications solutions to the global financial trading community including the top investment banks, hedge funds and investment managers in established and emerging markets. With a 100-percent focus on this sector and nearly 40 years of expertise and an unrivaled record of innovation, IPC provides customers with unified solutions that support collaborative voice trading and real-time electronic trading and market data connectivity. IPC’s offerings include the first unified communications/application platform, award-winning hard and soft turrets, electronic connectivity services including enhanced voice services, business continuity solutions, and follow-the-sun service and support. IPC’s global reach extends to nearly 60 countries – including a financial extranet of 4,000 on-net locations in over 700 cities and more than 115,000 turrets deployed worldwide. Headquartered in Jersey City, New Jersey, IPC has approximately 1,000 employees located throughout the Americas and the EMEA and Asia-Pacific regions.