Exchanges Connect

Terry Flanagan

Eris Exchange, a designated contract market, has come to an agreement with exchange giant CME Group to distribute its market data.

“The agreement is for CME to be another channel to distribute Eris Exchange market data,” Michael Riddle, chief operating officer of Eris Exchange told Markets Media. “CME has a vast market data platform and infrastructure to distribute market data to hundreds of thousands of subscribers worldwide.”

Through more than 300 direct connections, the CME Market Data platform serves approximately 630 licensed market data distributors.

“Any firm that wants to trade Eris Exchange products needs to connect to receive our market data, and now they can do it directly through us or use their existing CME connection,” said Riddle. “This significantly decreases the time, effort and resources required for a firm to start trading Eris Exchange products. It also allows a market data distributor to add Eris Exchange market data to their delivery platform easily.”

Eris in October received regulatory approval to become a designated contract market, effective in early November. The National Futures Association performs regulatory services for the exchange. Eris joins other DCM’s including Nymex, Comex, Chicago Mercantile Exchange, the Chicago Board of Trade and the IntercontinentalExchange.

Eris Exchange also recently launched benchmark forward starting interest rate swap futures, cleared by CME Clearing and traded on its Eris SwapBook and Eris BlockBox platforms.

The exchange offers buy-side users and sales desks the trading of standard maturity, plain vanilla, spot-starting swap futures from a dedicated group of liquidity providers through a fully-anonymous central limit order book. Eris Exchange employs trading protocols familiar to the over-the-counter marketplace, with contract maturities any day out to 30 years, par swaps quoted in rate terms allowing up to a tenth of a basis point of precision and seasoned swaps quoted in net present value-based upfront payment terms.

Eris Exchange is a futures market specializing in interest rate swap futures. It launched in August 2010 solely as a call-around market, offering an upstairs market without central limit order book. Since its inception, it has traded more than $34 million in nominal value. The contracts it handles are cleared by CME Clearing. It is backed by five Chicago proprietary trading firms, including Getco, DRW Holdings, Infinium Capital Management, Nico Holdings and Chicago Trading Co.

Eris Exchange has traded more than $34 billion in notional value of Eris interest rate swap futures. Its contracts are cleared by CME Clearing.

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