Eris Exchange has seen increased popularity in its seven-year standard swap futures contract, as firms look for ways to avoid the swap execution facility mandate for packaged trades under Dodd-Frank.
Eris Exchange has seen increased popularity in its seven-year standard swap futures contract, as firms look for ways to avoid the swap execution facility mandate for packaged trades under Dodd-Frank.
In its August report, Eris noted 7y swap future accounted for 11% of the volume traded by Eris in August 2014, compared to 3% of total volume traded in March. Kevin Wolf, chief business and product development officer at Eris in NY estimated 7y swaps make up about 7% of the over the counter swap market in the US. He said invoice spreads – where investors trade swaps alongside treasury futures – have been traded in the US for a long time, but have recently hit regulatory complexity, which has contributed to demand for an alternative.