CME to list USD Eris interest rate swap futures

May 10, 2018 09:53 AM

CME Group 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.”


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