>> Eris Exchange Margin Process Overview
CME Group Clearing: CME Clearing is the exclusive clearing provider to ERIS Interest Rate Swap Futures. The CME Clearing has an $8 billion guarantee fund and is the industry standard for clearing a gamut of futures and options.
Account Class: Eris Interest Rate Swap Futures Contracts are held in the traditional 4d (futures) Account Class. Beginning in March/April 2012, participants will be permitted to experience margin offsets between Eris Interest Rate Swap Futures Contracts and selected CME interest rate futures products such as Eurodollars and Treasury Note Futures.
Margin: Initial margin is collected by CME Clearing House. Margin levels are calculated by CME based on their HVAR methodology (Effective Sept 2011), based on a 5-year history. Daily variation margin is paid/collected each day in the same manner as any standard futures contract. Coupon and interest accruals typically associated with uncleared interest rate swaps are embedded in the contract price, and do not require payments/collections outside of daily variation margin.
Mark-to-Market: By marking positions to market twice each day, CME Clearing helps to limit the accumulation of losses helping each customer manage risk as well as containing risk for the market as a whole.
Fees: Exchange fees are charged to buyer and seller based on notional value and tenor of trade. Click Here
For further information about CME Clearing, visit: CME Group Clearing