Eris Exchange Receives FOW Magazine Award for Innovation by an Exchange in the Field of Product Design
CHICAGO and LONDON, Nov. 22, 2011 /PRNewswire/ — Eris Exchange, a US-based futures exchange, today announced that it has received the 2011 FOW Award for Best Innovation by an Exchange in the Field of Product Design for North America. The award, which was announced at the FOW Derivatives World event in London, recognizes Eris Exchange’s 2010 introduction of the groundbreaking Interest Rate Swap Futures contract that embeds the cash flows of OTC interest rate swaps into a futures contract cleared by CME Clearing.
Neal Brady, Chief Executive Officer of Eris Exchange stated, “We are proud to receive this recognition for innovation from such a prominent publication as FOW.” He added, “Driven by impending regulatory reform and increased concern over counterparty exposure, end user clients are seeking to tap new sources of liquidity to trade interest rate swap derivatives in a capital efficient manner. This award further confirms that trading Eris Exchange Interest Rate Swap Futures allows market participants to meet this challenge with a flexible futures contract that offers anonymous trading and settles independently to the daily CME Clearing interest rate swap curve.”
The Eris Exchange contract consolidates typical OTC cash flows from fixed and floating payments, upfront payments, termination payments and interest paid on collateral into a single price for settlement and bookkeeping purposes. This unique design allows the contract to be traded in familiar OTC conventions of par rate and NPV, while integrating into existing futures clearing and back-office systems that recognize cash flows solely through variation margin. As the contract is traded on a Designated Contract Market, all customer collateral is held in Customer Segregated 4d accounts at CME Clearing, which will offer margin savings of up to 95% against CME Treasury Futures and Eurodollar Futures positions starting in 2012.
The FOW awards recognize excellence within the derivatives industry for companies that solved a problem creatively, opened up new possibilities, or changed the way participants approach the market. Eris Exchange was chosen from worldwide nominations, and selected by an independent and anonymous panel of senior market participants.
Eris Exchange is a futures exchange (Designated Contract Market) regulated by the CFTC, and lists a US Dollar-denominated interest rate swap futures contract. Since launch, Eris Exchange has traded more than $34 billion in notional value of Eris Interest Rate Swap Futures. Eris Exchange contracts are cleared by CME Clearing, a leading derivatives clearing house. For more information, visit Eris Exchange online at www.erisfutures.com.
SOURCE Eris Exchange