Intercontinental Exchange (ICE) has announced it will launch Eris interest rate futures on its European exchange.
Ice Futures Europe, formerly known as Liffe, will list Eris standard interest rate futures contracts in both euro and sterling denominations.
The contracts will clear at ICE Clear Europe and are based on the product design of Eris Exchange’s US dollar-denominated swap future contracts.
The products aim to replicate the cash flows of comparable swaps, but will be cheaper to trade and clear once rules on clearing of OTC derivatives come into force.
David Peniket, president and COO of ICE Futures Europe, said: “As the clearing mandate approaches in Europe, market participants are seeking more efficient means to hedge their interest rate exposure. Eris’ unique methodology provides our customers with an innovative, on-exchange solution for replicating the economics of interest rate swaps.”
The interest rate future contracts will be available to trade on 29 June.
The contracts are the second tranch of Eris futures contracts made available through ICE, with Eris CDX HY and Eris CDX IG both launching on ICE Futures US in April.
ICE also revealed plans to list two more Eris products, Eris iTraxx Main and Eris iTraxx Crossover in the second have of 2015 as part of a multi-year licence agreement with Eris Exchange.