CME to list Eris US interest rate swap futures

CME Group agrees licensing deal to list Eris US interest swap deals as of Q4 this year.

CME Group will add to its suite of interest rate products by listing Eris USD swap futures in the fourth quarter of this year.

The deal means Eris products will be listed on two of the biggest futures exchanges in the US, through CME and Intercontinental Exchange.

Swap futures have become an alternative to OTC derivatives trading, which has become more costly under new regulations.

Pending regulatory approval, Eris futures will be listed with and subject to the rules and regulations of Chicago Board of Trade. Existing open interest in the contracts will be transferred to CME Group upon completion of the deal.

“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.”

Eris has been actively growing its business in recent years through new deals with brokers including ED&F Man Capital Markets and Webush Futures.

The exchange also hired Bloomberg LP’s head of global markets George Harrington and Barclays former head of agency derivatives Tim Stack as its head of Europe, both within the last year.

At the end of March, CME announced it had reached an agreement to acquire UK-based Nex Group in a £3.9 billion deal designed to streamline access and new trading opportunities across spot and futures FX products, and cash, repo and futures products in US Treasuries.

“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.”