Chicago to take on Wall Street with new exchange for interest rate swaps - FT

Chicago to take on Wall Street with new exchange for interest rate swaps - FT

Five Chicago dealers have teamed up with the Chicago Mercantile Exchange to launch a new interest rate swaps trading platform in anticipation of financial reform measures designed to push over-the-counter derivatives trading to exchange-based systems.

The new venture will be called Eris Exchange, says the Financial Times, citing "people familiar with the matter". It will offer trading in a new range of interest rate swaps products designed as futures contracts, distinguishing them from the traditional OTC products pushed by major Wall Street dealers to buy side investors.

They will be cleared over the CME's own clearing house and allow for cross-margining with other similar exchange-based products.

The five firms backing the Chicago exchange in the initiative are Getco, DRW Trading, Infinium Capital Management, Chicago Trading Company and Nico Trading, says the FT.

In Greek mythology, Eris is the god of strife and discord. The name has been chosen to signal the reaction that Chicago anticipates from Wall Street dealers. says the FT.

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