Eris Exchange (Eris), a U.S.-based futures exchange group offering swap futures as a capital-efficient alternative to OTC interest rate swaps, today announced that Societe Generale Prime Services - formerly Newedge - has completed an equity investment in Eris. As part of the arrangement, Societe Generale will join Eris' board of directors.
Societe Generale Prime Services' business has been a leading clearer for Eris Swap Futures for several years and offers a diverse set of voice and electronic execution services to its clients. The bank's US based swap desk has recently completed live trades and participates on the exchange as a market maker, providing liquidity for block markets. It will also provide streaming electronic markets in the coming months.
"Societe Generale continues to pursue innovative offerings to meet the needs of its clients in an increasingly capital-constrained marketplace," said David Escoffier, Deputy Head of Global Markets for Societe Generale Corporate & Investment Banking and CEO at Newedge. "We believe Eris' futurized products, ranging from standardized to customized swap futures, constitute an interesting alternative to OTC interest rate swaps for our clients. Acquiring a minority share reflects our commitment to developing a full range of innovative solutions in the new regulatory environment."
"Eris welcomes Societe Generale as an anchor liquidity provider for voice and electronic markets, as an equity investor and a member of our board, at a time when BASEL III regulatory framework and capital constraints challenge traditional OTC markets," said Neal Brady, CEO of Eris Exchange. "Clients will benefit from the commitment by Societe Generale's leading rates trading team to stream live quotes for the two-sided markets electronically and to offer block liquidity in capital-efficient Eris Swap Futures."