Intercontinental Exchange, Inc. a leading operator of global exchanges and clearing houses and provider of data and listings services, announced that it has extended its global product licensing agreement with Eris Innovations, an intellectual property licensing company that partners with global exchanges to design futures products based on its patented Eris Methodology.
In conjunction with the extension, ICE Futures Europe plans to amend its existing Eris GBP LIBOR Interest Rate Future and Eris EURIBOR Interest Rate Future contracts to reflect changes to the pricing methodology at Eris.
The contracts will be quoted and traded in futures price terms, instead of net present value, making it easier for the contracts to be integrated into order management, trade execution and risk management systems. This change will occur in the third quarter of 2019, subject to the completion of relevant regulatory processes.
“As the home of UK and European interest rates futures, ICE offers the broadest suite of highly liquid, cost-effective and margin-efficient tools for managing Sterling and European interest rate risk,” said Chris Rhodes, Global Head of Financial Derivatives at ICE Futures. “Extending the partnership with Eris Innovations will further support ICE in helping its clients seek capital-efficient ways to transfer interest rate risk.”
Along with Eris, Sterling-denominated interest rate products available on ICE include Short Sterling Futures and Options, Gilt Futures and Options, and SONIA Futures. Open interest in ICE Interest Rate futures and options, including Euribor, is 29.2 million, up 9.3% year-over-year.
“Eris’ recent success has been fueled by our committed partners, including BlueCrest Capital Management, DRW, Virtu Financial and OSTC, and demonstrates the global growth potential of Eris Swap Futures,” said Michael Riddle, CEO of Eris Innovations. “ICE’s long-standing leadership position in Euribor and Short Sterling futures markets, and their recent growth of SONIA futures, makes them the natural partner for Eris Innovations in Europe.”
“OSTC’s continued global growth is underpinned by a culture of innovation and is exemplified through our partnership with Eris, whose innovative suite of products provide opportunities for us to increase our exposure to interest rate markets,” said Lee Hodgkinson, CEO of OSTC Ltd. “We look forward to working closely with Eris and ICE on these exciting developments.”
