Citadel mulls connection to Eris Exchange

Citadel Securities looking to hook up to Eris Exchange as market maker.

Citadel Securities is considering connecting with swap futures operator Eris Exchange as a market maker, following discussions looking into how the two firms can work together.

Head of fixed income, currencies and commodities at Citadel Securities Paul Hamill told delegates at the Fixed Income Leaders Summit in Boston that the firm was ‘hooking up’ to Eris Exchange.

It was confirmed Citadel Securities is working closely with Eris Exchange to evaluate the work involved to connect and the commercial basis for doing so.

Neal Brady, chief executive officer and co-founder at Eris Exchange told The Trade: “Eris Exchange has been in dialogue with Citadel Securities for some time discussing ways we can work together.

“We have a product which provides the leading alternative form of trading swap risk, and Citadel has an aggressive operation in providing liquidity for swaps.”

Following the Chicago Board Options Exchange’s (CBOE) recent investment in Eris Exchange, the swap futures venue has seen growing momentum in its platform.

Brady described the momentum as a ‘tipping point’, with “major liquidity providers and clients flocking to the platform.” 

He added: "Non-bank liquidity providers offer competitive prices for swap futures in addition to a tremendous amount of liquidity to satisfy clients looking to trade with new counterparties and to tap new pools of liquidity."