MONTREAL, Sept. 10, 2014 /PRNewswire/ -- Montreal
Exchange (MX), Canada's
derivatives exchange, and Eris Exchange, a US-based futures
exchange, today announced a licensing agreement for MX and Canadian
Derivatives Clearing Corporation (CDCC) to offer trading and
clearing of Canadian Dollar swap futures and options based on the
Eris Methodology, Eris Exchange's unique product design and
intellectual property for constructing swap futures as a
capital-efficient alternative to OTC swaps.
"Recent regulatory reforms have led to the emergence of the
global swap futures market and the regulatory landscape here in
Canada continues to evolve," said
Alain Miquelon, President and CEO,
Montreal Exchange and Group Head of Derivatives Markets, TMX Group.
"As MX evaluates alternatives to meet the needs of this growing
market, we are pleased to announce this agreement with the Eris
Exchange, which will leverage their proven expertise to futurize
swaps for the Canadian interest rate market."
The patent-pending Eris Methodology replicates the economics of
interest rate swaps through capital efficient futures products, by
combining the component cash flows of swaps into a single futures
price, allowing payments to flow through variation margin. Swap
futures based on the Eris Methodology remain futures throughout the
full lifecycle of the position, allowing market participants to
operate within the familiar eco-system of futures market
regulations, back-office processes, agency execution and software
tools.
"With its distinguished track record in developing deep and
liquid markets for Canadian interest rate futures, Montreal
Exchange is an ideal partner to deliver the value of the Eris
Methodology to the Canadian-dollar denominated interest rate
market," said Neal Brady, CEO of
Eris Exchange. "Bolstered by recent growth in our U.S.
Dollar-denominated Eris Flex and Eris Standard Swap Futures,
including last Friday's volume and open interest records, Eris
Exchange is looking to extend the reach of its innovative
methodology for futurizing swaps to new jurisdictions and asset
classes."
About TMX Group (TSX: X)
TMX Group's key subsidiaries operate cash and derivative markets
and clearinghouses for multiple asset classes including equities,
fixed income and energy. Toronto Stock Exchange, TSX Venture
Exchange, TMX Select, Alpha Group, The Canadian Depository for
Securities, Montreal Exchange, Canadian Derivatives Clearing
Corporation, NGX, BOX Options Exchange, Shorcan, Shorcan Energy
Brokers, Equicom and other TMX Group companies provide listing
markets, trading markets, clearing facilities, depository services,
data products and other services to the global financial community.
TMX Group is headquartered in Toronto and operates offices across
Canada (Montreal, Calgary and Vancouver), in key U.S. markets (New York, Houston, Boston and Chicago) as well as in London, Beijing and Sydney.
For more information about TMX Group, visit our website at
www.tmx.com. Follow TMX Group on Twitter at
http://twitter.com/tmxgroup.
About Eris Exchange
Eris Exchange is a futures exchange registered as a Designated
Contract Market with the Commodity Futures Trading Commission. Eris
Exchange lists cash-settled interest rate swap futures with current
open interest exceeding 129,000 contracts. Eris Exchange contracts
are cleared by clearing firms through CME Clearing, the global
leader in derivatives clearing. Eris SwapBook™, Eris BlockBox™, and
Eris Methodology™ are trademarks of Eris Exchange. For more
information, visit Eris Exchange online at www.erisfutures.com or
follow us on Twitter @erisfutures.
Media Contacts:
TMX Group
Shane Quinn
Senior Manager, Communications and Public Affairs
TMX Group
416-947-4609
shane.quinn@tmx.com
Eris Exchange
Christopher
Rodriguez
(212) 561-5472
Christopher.Rodriguez@erisfutures.com
www.erisfutures.com
SOURCE Eris Exchange