Trading Technologies International, Inc. (TT), a global provider of high-performance trading software for derivatives professionals, and Eris Exchange, a U.S.-based futures exchange offering swap futures as a capital-efficient alternative to traditional OTC interest rate swaps, today announced that TT has released its connection to the Eris SwapBook electronic trading platform.
Eris Exchange two-year, five-year, 10-year and 30-year quarterly Eris Standards are now accessible to all users of TT's X_TRADER software and related products. In addition, clients may use the Autospreader spread trading tool to trade cross-exchange spreads through TT's proximity-based Strategy Engine execution servers. Examples include:
- Yield curve spreads (steepeners and flatteners using quarterly Eris Standards)
- Cash/futures swap spreads using Eris Exchange futures and BrokerTec and GovEx cash Treasuries
- Capital efficient futures/futures swap spreads (invoice spreads) using Eris Exchange futures and CME Group Treasury futures
"Traders, hedgers and brokers already using TT can now trade Eris futures to manage interest rate swap risk with trusted and familiar offerings like X_TRADER, ADL™ and TTNET™ ahead of the next wave of clearing mandates," said Neal Brady, CEO of Eris Exchange. "The distribution of Eris Standards on TT provides capital-efficient and Dodd-Frank compliant access to existing swap users, while significantly opening up access to TT's thousands of global futures users. The inclusion of Eris Standards into TT's core offering also provides unique trading opportunities by electronically connecting the deepest pools of liquidity in listed derivatives."
The launch of TT's Eris Exchange link comes in advance of the Dodd-Frank June 10 Category II Swap Clearing Mandate, which impacts commodity pools, hedge funds, non-swap dealer banks and some insurance firms. Trading Eris Standards through TT's platform can help end-user clients comply with the OTC clearing mandate.
"We are excited to provide our global client base of active traders with access to Eris Exchange interest rate swap futures. Given current regulatory changes and market conditions, we think our clients will be very interested in this new market and the new trading opportunities it represents," said Harris Brumfield, CEO of TT.
TT's new gateway also gives clients the ability to access GovEx, a trading platform for U.S. Treasury securities that is part of State Street's eExchange offering. Products listed on GovEx include highly liquid on-the-run, when-issued and first-available off-the-run U.S. Treasury bills, notes and bonds. Through GovEx, all TT clients now have the ability to trade complex strategies, including intra-exchange and cross-market spreads, across a range of U.S. Treasury securities and U.S. Treasury futures products.
Clients can enter trades through the Eris/GovEx Gateway using TT's full suite of products, including the ADL visual programming platform for automated trading and the TT API and FIX Adapter application programming interfaces (APIs). Firms may host gateways internally or outsource connectivity to TTNET™, TT's fully managed hosting solution. The Eris/GovEx Gateway also is accessible through TT's new MultiBroker ASP solution, which is currently in beta.