With firms looking for new ways to bring OTC products to market in response to regulatory mandates including Dodd-Frank, Sapient Global Markets will utilize its deep derivative industry expertise to help market participants quickly and efficiently convert existing and new OTC interest rate swap products to the clearinghouse model.

Under the agreement, Sapient Global Markets will provide client training, program management and technology expertise including integration of clearing and trading systems as well as support for other technology solutions, to help firms take advantage of the Eris Exchange Interest Rate Swap Futures market. Eris Exchange, a U.S. based futures exchange, embeds the cash flows of OTC interest rate swaps into a capital-efficient futures product cleared by CME Clearing and settled to the CME OTC IRS swap curve. It allows contracts to be traded as though in an OTC environment while integrating into existing futures clearing and back-office systems, assisting with regulatory compliance and enabling faster time to market.

Neal Brady, CEO of Eris Exchange, said, "Eris Exchange brings safety, transparency and liquidity to the interest rate swaps marketplace by operationalizing and simplifying the new regulations around OTC swap and derivative clearing. Sapient Global Markets' domain and technology expertise makes it highly qualified to help sell-side banks and trading firms take full advantage of the transparency and capital efficiency of Eris Exchange products."

"Our unique understanding of derivative clearing environments, changing regulations and the Eris Exchange product gives us the ability to ensure firms' clearing strategies are efficient, transparent and compliant under new laws slated to become effective March 11, 2013," says Jim Bennett, managing director at Sapient Global Markets. "Sapient Global Markets is distinctively positioned to help Eris Exchange clients develop and implement their business and technology strategies to achieve faster time to market and reduce the risk and complexity of ongoing regulatory and market change."