CHICAGO and LONDON, Sept. 20, 2016 /PRNewswire/ -- Eris Exchange, LLC (Eris) and Cassini Systems Limited (Cassini) announced today that Eris will offer analytical tools powered by Cassini that show end-users how to generate dramatic initial margin savings by replacing OTC Swaps with Eris Swap Futures, while retaining the risk exposure of the portfolio. Eris is a U.S.-based futures exchange offering cash-settled swap futures as the leading alternative to traditional OTC swaps. Cassini offers a pre-trade platform for OTC trading that combines risk, limits, fees, margin and collateral in a set of decision support analytics. This set of tools allows for what-if scenarios yielding the lowest margin, as well as other portfolio cost analytics.
The Eris-sponsored access to the Cassini offering will allow clients to identify portfolios of Eris Swap Futures that can lower initial margins in excess of 50%. End users submit a sample portfolio of OTC IRS, or a delta ladder, and the analytics powered by Cassini generate a report detailing the replacement portfolio of margin efficient Eris positions. This service is being offered free of charge. Market participants can find more information by going to www.erisfutures.com/optimize.
"Cassini's ability to analyze and replicate a client's OTC swap portfolio using Eris Swap Futures is powerful. The resulting analysis illustrates the margin savings achievable when replacing OTC swaps with Eris Swap Futures, and therefore reduces the need to convert assets to cash to meet margin calls. This reduction in margin is immediately accretive to portfolio income," said Steven Griffiths, Managing Director of Absolute Derivatives, a London-based derivatives market structure consulting firm
"End users and clearing firms are increasingly turning to capital-efficient Eris Swap Futures in response to the escalating costs of trading OTC swaps. Partnering with Cassini Systems allows Eris to offer swap market participants a powerful tool to quantify margin benefits of migrating positions from OTC swaps to Eris Swap Futures," said Neal Brady, Chief Executive Officer of Eris.
"At Cassini, we have focused on creating systems for pre-trade decision making that change the way users trade LIBOR risk and use listed derivatives in their portfolios," said Marc Knaap, Head of Sales for Cassini Systems. "Our focus on innovation to improve trading decisions in the post Dodd-Frank and Basel III environment is underscored by our new relationship with an industry leader, Eris Exchange."
Eris and Cassini will host a webinar on September 28th at 10 AM ET; sign up for the webinar to learn more.
About Eris Exchange, LLC:
The Eris Exchange is a U.S. futures exchange registered as a Designated Contract Market with the CFTC. The Exchange lists cash-settled interest rate swap futures with current open interest of 170,000 contracts in USD Interest Rate Swap Futures. Eris Interest Rate Swap Futures listed on Eris are cleared by CME Clearing, and are based on the Eris Methodology™, an award-winning product design for constructing swap futures in a capital-efficient manner through intellectual property, expertise and patent-pending innovations. Eris contracts enjoy margin offsets against the CME rates complex, which includes Eurodollar and Treasury Futures, and represents $12.6 trillion notional in Open Interest. The Eris Methodology is also licensed by Intercontinental Exchange (ICE), Johannesburg Stock Exchange (JSE), TMX Group companies including Montreal Exchange (MX), and CBOE Futures Exchange (CFE) for listing interest rate, equity variance and credit default swap futures. Trademarks of Eris Exchange and/or its affiliates include Eris, Eris Exchange, Eris SwapBook, Eris BlockBox, Eris PAI and Eris Methodology. For more information, visit Eris Exchange online at http://www.erisfutures.com or follow Eris on Twitter @erisfutures.
About Cassini Systems:
Cassini Systems is a financial technology company founded by the previous CEO of Syncova Solutions with a team based in New York and London. Cassini delivers a pre-trade analytics platform for OTC trading combining risk, limits, fees, margin and collateral. Users can access what if trade testing, Best Execution and Best Hedge recommendation alongside Regulatory and Operational Limits Monitoring. Cassini's vision is to provide a new holistic platform that transforms the pre-trade experience for the front office while still allowing traders the flexibility they need.
Eris Media Contact:
Cassini Media Contacts:
Liam Huxley (US)
+ 1 (917) 691-3840
Marc Knaap (UK)
+44 (0) 203 286 7300
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SOURCE Eris Exchange LLC