CHICAGO, May 10, 2018 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, and Eris Exchange, a U.S.-based futures exchange group that offers swap futures as the leading alternative to traditional over-the-counter (OTC) swaps, today announced they have entered into an exclusive licensing agreement to list USD Eris Interest Rate Swap futures, which already clear at CME Clearing.
Pending regulatory approval, Eris futures will be listed with and subject to the rules and regulations of CBOT, starting in the fourth quarter of 2018, and existing open interest in the contracts will be transferred to CME Group at that time. The Eris futures will trade alongside the MAC Swap Futures, bringing together the two leading interest rate swap futures on a single exchange venue. Until the migration in late 2018, Eris Swap Futures will remain listed at Eris Exchange and cleared at CME Clearing, where they are subject to margin offsets with CME Group's interest rate futures.
"Given strong participation and growing demand for greater access to OTC swap markets, making Eris products available to trade on our global, electronic and liquid CME Globex platform will provide market participants with greater capital efficiencies," said Agha Mirza. CME Group's Global Head of Interest Rate Products. "We are committed to offering our customers a choice of products to best meet their evolving hedging needs, and we look forward to working with market participants in the coming months to ensure a smooth transition."
"CME Group is the ideal platform to propel the next phase of growth of USD Eris Swap Futures," said Neal Brady, CEO of Eris Exchange. "The migration to CME Group provides Eris with access to expanded trading hours, thousands of international market participants, distribution through dozens of clearing firms and software providers, an enhanced set of portfolio margining opportunities, and the potential to offer options products in the future."
"As a leading liquidity provider in global fixed income products, Virtu recently commenced streaming two-sided markets in Eris' electronic order books," said Douglas Cifu, CEO of Virtu Financial, Inc, and Eris board member. "Pairing Eris' deep and liquid markets with CME Group's global distribution is an exciting development that will further accelerate the adoption of Eris Swap Futures as a benchmark future for hedging LIBOR swap risk."
For more information, please visit www.cmegroup.com/swapfutures
About CME Group
As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. Through its exchanges, CME Group offers the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange,energy, agricultural
products and metals. CME Group provides electronic trading globally on its CME Globex platform. The company also offers clearing and settlement services across asset classes for exchange-traded and over-the-counter derivatives through CME Clearing. CME Group's products and services ensure that businesses around the world can effectively manage risk and achieve growth.
CME Group, the Globe Logo, CME, Chicago Mercantile Exchange, CME Direct and Globex are registered trademarks of Chicago Mercantile Exchange Inc. All other trademarks are the property of their respective owners.
About Eris Exchange
The Eris Exchange group includes a US futures exchange registered as a Designated Contract Market with the CFTC, and owns the Eris Methodology™, the intellectual property on which the USD Eris Swap Futures contracts are based. These contracts currently trade electronically on the Eris SwapBook electronic trading platform, and clear through CME Clearing. Current open interest in Eris U.S. dollar Interest Rate Swap Futures is over 209,000 contracts, and they receive automatic margin offsets against the CME rates complex, including Eurodollar and U.S. Treasury Futures.
Trademarks of Eris Exchange and/or its affiliates include Eris, Eris Exchange, Eris SwapBook, Eris BlockBox, Eris PAI, Eris Methodology, Eris Pricing Engine and the Eris Logo. For more information, visit Eris Exchange online at http://www.erisfutures.com or follow Eris on Twitter @erisfutures.
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SOURCE CME Group