Montréal Exchange to Launch Eris-based Canadian Dollar Interest Rate Swap Futures
March 16, 2016 (MONTRÉAL) – Montréal Exchange (MX), Canada's leading derivatives exchange, today announced that it will expand its interest rate derivatives offering with the launch of Canadian Dollar Interest Rate Swap Futures based on the Eris MethodologyTM. These new swap futures contracts will be cleared at the Canadian Derivatives Clearing Corporation (CDCC) and will be available for trading on MX in September 2016.*
"Regulatory reforms are transforming the interest rate swap market globally, with trading markets and clearing houses taking a larger role," said Alain Miquelon, President and CEO, Montréal Exchange and Group Head of Derivatives, TMX Group. "By offering this innovative new product, the Montréal Exchange will provide market participants with a transparent and cost-efficient benchmark product to complement the Canadian interest rate swap market, while also improving price discovery across the Canadian yield curve."
The Eris Methodology is intellectual property of Eris Exchange that replicates OTC swaps economics into a single futures price, thereby allowing the product to remain a futures contract throughout its full lifecycle. The innovative product design allows participants to operate within the familiar ecosystem of futures market regulations, back-office processes, agency execution and software tools. Once launched, the contracts will follow Canadian interest rate swap market conventions and offer tenors of two, five and 10 years.
"We are proud to collaborate with Montréal Exchange in their launch of Eris-based Canadian Dollar Interest Rate Swap Futures, and the September target launch date is well-timed," said Neal Brady, CEO of Eris Exchange. "In Canada and around the world, the tightening capital constraints related to the introduction of Margin on Uncleared Swaps, Mandatory Swap Clearing, and revised Basel III Leverage Ratio calculations are driving banks and swap end users to embrace the capital efficiency of Eris Swap Futures."
* Subject to self-certification of the product
Trademarks of Eris Exchange and/or its affiliates include Eris®, Eris Exchange®, Eris Methodology®, Eris SwapBook™, Eris BlockBox™, and Eris Pricing Engine™.
About TMX Group (TSX: X)
TMX Group's key subsidiaries operate cash and derivative markets and clearinghouses for multiple asset classes including equities, fixed income and energy. Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange, The Canadian Depository for Securities, Montréal Exchange, Canadian Derivatives Clearing Corporation, NGX, BOX Options Exchange, Shorcan, Shorcan Energy Brokers, AgriClear and other TMX Group companies provide listing markets, trading markets, clearing facilities, depository services, data products and other services to the global financial community. TMX Group is headquartered in Toronto and operates offices across Canada (Montréal, Calgary and Vancouver), in key U.S. markets (New York, Houston, Boston and Chicago) as well as in London, Beijing, Singapore and Sydney. For more information about TMX Group, visit our website at http://www.tmx.com. Follow TMX Group on Twitter: @TMXGroup.
For more information please contact:
Mathieu Labrèche
Manager, Corporate Communications and Public Affairs
TMX Group
416-947-4474
mathieu.labreche@tmx.com