Getting Started: Trading

 >> Eris Exchange Getting Started: Trading

I. Introduction to Eris Exchange

1. Meeting or phone call
   1. Discuss Eris Exchange Overview Presentation [PDF]

II. Product Validation

1. Review product discussion materials
   1. Detailed Product Contract Specifications [PDF]
   2. Product Comparison of Eris Exchange Futures and OTC Swaps [PDF] comparing treatment of fixed and floating amounts on Eris Exchange and collateralized OTC swaps
   3. Eris Exchange Product White Paper [PDF]
   4. Eris Exchange Benchmark Contracts[PDF]
2. Validation of CME Clearing Curve Generation Process
   1. CME Clearing Curve Methodology Description (available upon request)
   2. Access to CME curve inputs (available upon request)
   3. Eris Exchange can schedule a deep dive conference call with CME Clearing staff

III. Demo and Test Trades of Eris Exchange Contracts

1. Demo of Trading Platform – Eris SwapBook Electronic Trading
   1. The demo can be face-to-face or via the web
2. Demo of Block Trade Platform – Eris BlockBox for reporting of Block Trades and EFPs
3. Set-up IDs for DEMO environment of Eris SwapBook
4. Desk executes trades in the Eris Exchange test environment according to a pre-determined script
   1. Eris Exchange provides a sample test script to execute in a Demo environment accessible over the internet
   2. Sample trades include trades crossing fixed and floating reset dates, unwinds, and execution of off-market trades
5. Eris Exchange provides daily settlement file for users to compare values to output from in-house or third-party valuation systems for OTC swaps
6. The following Eris Exchange end of day files can be found at: ftp://ftp.erisfutures.com/ 
   1. Beginning and End of Day Pricing Files
   2. Eris Exchange Curve File
   3. Eris Exchange Libor and OIS Discount Factor Files
   4. Eris Exchange Swap Leg Price File

IV. Margin Analysis

1. Discussion of Eris Exchange Margin Process Overview [PDF]
2. Trading Desk set up to run Eris Exchange portfolios with CME Clearing swap margining tools
   1. CME PC Rates

V. Discuss Execution Alternatives

1. Eris SwapBook trading screen
2. Independent Software Provide (ISV) offering Eris Exchange electronic markets
3. Execution brokers

VI. Integration with Middle/Back Office, Risk and Valuation Systems

1. Integration with back office systems(Clearing Firms only)
2. Integration with middle office and risk systems
3. Drop copy messages provided by Eris Exchange

VII. Getting Ready to Trade

1. Select a Clearing Firm and establish an account
2. Direct Access
   1. Execute a Eris Exchange Participant Firm Agreement and Eris Exchange User ID Request Form
   2. Clearing Firm assigns User IDs and permissions Risk Controls
      1. Eris SwapBook for electronic trading
      2. Eris BlockBox for voice and block trades to be entered
      3. Review of Risk Controls Overview [PDF]
   3. Eris Exchange issues SwapBook IDs
   4. Begin trading
3. Brokered Access
   1. Select an executing broker offering access to Eris Exchange products
   2. Begin trading