Newedge, a multi-asset clearing and brokerage firm, has executed and centrally cleared over USD2bn in client interest rate swaps on the Eris Exchange platform, an exempt board of trade under CFTC regulation, with clearing services provided by CME Clearing.

Newedge connected to Eris Exchange in August 2010 for the purpose of broking between exchange members to execute client interest rate swaps.

Counterparties executing OTC interest rate swap transactions can reduce their risk by trading on Eris Exchange with Newedge as their executing and clearing firm. 

The Eris Exchange interest rate swap futures product is designed to model a standard fixed versus floating USD denominated interest rate swap on the three-month Libor index, except accruals are included in the price. Customer positions will clear through CME Clearing as segregated (30.7) secured accounts. Newedge is eligible to clear these contracts in its capacity as a CME class A clearing member.

Nicolas Breteau, Newedge chief executive, says: “Private initiatives such as Eris Exchange can help create a safer environment for OTC interest rates swaps transactions and clearing. Newedge’s Eris initiative shows our commitment to deliver solutions for the IRS asset class, the largest of the OTC derivative markets. The fact that we are involved in both the transaction and the clearing was an important factor in our decision to connect to the Eris Exchange platform. We are fervent supporters of both pricing and post-trade transparency, and view this as the best way to create value for our buy-side clients.”