Virtu Financial and BlueCrest Capital Management have joined US-based futures exchange group Eris as equity partners.
Both firms have started trading swap futures with Eris following the deal. BlueCrest is trading with Eris to manage interest rate risk, and Virtu is now streaming two-sided electronic markets.
News of the equity partnerships follows Eris Exchange’s announcement last month that Eris USD swap futures will migrate from the exchange to CME Group in the last quarter 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.
“BlueCrest is a recognised, global leader in interest rate swap trading among buy-side firms, and Virtu has an impressive track record in providing liquidity in fixed income markets,” said Neal Brady, CEO of Eris Exchange.
“Bringing both BlueCrest and Virtu on board as committed partners positions Eris swap futures to achieve another level of liquidity and volume growth ahead of our migration to CME Group later this year.”
Michael Platt, CEO and co-founder of BlueCrest, added that the equity partnership with Eris allows the firm to support the emerging pool of liquidity for expressing interest rate swap risk. He also said the company plans to increase its participation leading up to the CME migration.
Virtu Financial’s chief executive, Doug Cifu, has also joined the board at Eris Exchange. Cifu commented that Eris is on the “leading edge of innovation in fixed income markets”, providing traders and investors a product to express their interest rate views, and providing hedgers an instrument to manage long term rate exposure.