In the new case study, author Charles Brobst, Managing Partner at GFM Solutions, illustrates the use of swap futures as a hedge for changes in the fair value of fixed-rate debt, attributable to changes in the LIBOR benchmark interest rate. The case study uses regression analysis to assess hedge effectiveness. Brobst said: "Once we established the effectiveness of the Eris Swap Futures from a fair value hedge accounting perspective, we provided a blueprint for accountants to map out their own hedge accounting treatment. By doing so, we demonstrated that the process is really quite straightforward, eliminating the perceived barriers to entry for a wide range of end users."
As in the cash flow hedge accounting study, the fair value case study includes journal entries and sample designation documentation, providing RJO clients with the detail needed to incorporate Eris Interest Rate Swap Futures into their hedging strategies.
Eligible parties can obtain the full case studies on cash flow and fair value hedge accounting treatment by contacting Eris or RJO at: www.erisfutures.com/RJOcasestudy.
About Eris Exchange:
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 172,000 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. 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 R.J. O'Brien:
Founded in 1914, R.J. O'Brien & Associates is the largest independent futures brokerage firm in the United States, serving institutional, commercial and individual clients globally, in addition to a network of 400 introducing brokers (IBs). Clearing more than 80,000 client accounts, RJO services the industry's most expansive global network of IBs, a vast array of middle market firms and many of the world's largest financial, industrial and agricultural institutions. The firm offers state-of-the-art electronic trading and 24-hour trade execution on every major futures exchange worldwide.
Eris Media Contact:
Chief Marketing Officer
RJO Media Contact:
Ellen G. Resnick
Crystal Clear Communications
773/929-9292; 312/399-9295 (cell)
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/eris-and-rj-obrien-fixed-income-group-release-second-hedge-accounting-paper-300366306.html
SOURCE Eris Exchange