Eris Exchange is pleased to highlight that it has reached another major milestone in its client acquisition and growth strategy this week.
Open interest (OI) in CME cleared U.S. dollar denominated Eris Swap Futures has broken through the 200,000 level for the first time, with a new high of
201,440 set on September 11, 2017. These positions, which represent over $20 billion of LIBOR swap risk, are backed by CME Clearing’s flagship futures guarantee fund.
Open interest in the Eris Standard Swap Futures contracts, where trading in Eris is now concentrated, has grown by ~70% over the past 18 months. This growth is being fueled by rising institutional demand for a better way to trade interest rate swap risk, and a combination of the factors summarized below:
Based on the patented Eris Methodology, our contract is the only futures product that is convexity neutral with its underlying OTC equivalent. This framework allows Eris Swap Futures to be held long term without forced delivery or roll, making them a suitable hedging tool to a diverse range of new futures end users, not just traditional futures participants.
Total Eris order book liquidity has risen by 300% since early 2016, and inside “touch” prices in Eris 2-10 year tenors now cover the average reported OTC swap trade by 100-200%.
Anonymous all-to-all order book bid-ask spreads have improved to an average of 0.4bps in the most active Eris contracts, and are often tradable at tighter levels.
Improved Eris liquidity has drawn in new end user hedging participants, which in turn have attracted additional liquidity providers, both traditional OTC dealers and listed futures market makers that previously may have had no access to swap markets and SEF platforms.
Eris has also continued to expand its network of service providers to facilitate usage by real money institutional end users: from new liquidity providers improving the quality of Eris “touch” markets as highlighted above, to new FCMs and independent software vendors (ISVs) which are necessary for processing, reporting and risking Eris positions.