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Getting Started: Trading

 >> Getting Started with Eris Exchange: Trading

This is a step-by-step outline to get started trading with Eris Exchange.  In order to begin trading, participants must have a relationship with an eligible Clearing Firm.  To see a list of Clearing Firms, go to www.erisfutures.com/eligible-clearing-firms.

 

Introduction to Eris Exchange 

Product Validation

Review Product Discussion Materials

Validation of CME Clearing Curve Generation Process

  • Review CME OIS-Based Curve Methodology document. Contact CSG@erisfutures.com for a copy.
  • Participants have access to CME curve inputs (available upon request)
  • Eris Exchange can schedule a meeting with CME Clearing to discuss the curve in detail

Demos of Eris SwapBook and BlockBox and Test Trades

  • Eris Exchange Client Services Group (CSG) can set up access to Eris SwapBook and BlockBox demo environments   
  • Clients can utilize Eris SwapBook, the front-end electronic trading platform to:
    • Execute test trades
    • Observe the markets
    • Back test the data
  • Eris BlockBox is a web interface used to report pre-negotiated Block Trades, Exchange for Risk (EFR), and Exchange for Physicals (EFP)
  • Client executes trades in the Eris Exchange test environment, accessible over the internet, according to a pre-determined test script
  • Sample trades include trades crossing fixed and floating reset dates, unwinds, and execution of off-market trades
  • Eris Exchange provides daily settlement files for users to compare values to output from in-house or third-party valuation systems for OTC swaps.  Settlement files related to the production environment available at ftp://ftp.erisfutures.com
  • Beginning and End of Day Pricing Files [XLS]
  • Eris Exchange Curve File [XLS]
  • Eris Exchange LIBOR and OIS Discount Factor Files [XLS]
  • Eris Exchange Swap Leg Price File [XLS]

Margin Analysis           

  • Eris Exchange instruments use the same HVaR (Historical Value at Risk) margin methodology that CME Clearing uses for cleared Interest Rate Swaps
  • HVaR margin is better suited for the daily maturities and granular coupon rate characteristics of interest rate swap derivatives in comparison to SPAN margin.  To learn more, refer to Eris Exchange Guide To Apply CME HVAR Margining [PDF]
     
  • Clearing Firms and participants can independently verify initial margin amounts on actual and simulated portfolios using CME CORE and CME PC RATES applications

Choose Execution Method

  • Eris SwapBook
  • Independent Software Vendor (ISV).  For a list of ISVs offering Eris Exchange electronic markets, contact CSG@erisfutures.com
  • Voice-brokered Block, EFR, and EFP trades through a registered Eris Exchange Broker.  Contact CSG@erisfutures.com for a list of authorized broker firms

Integration with Middle/Back Office, Risk and Valuation Systems 

  • Eris Exchange, CME Clearing and selected Clearing Firm perform back-office system integration
  • Participant works with Eris Exchange to integrate middle-office and risk systems
  • Eris Exchange provides trade execution drop copy messages

Complete Agreements

Available Resources