Eris SOFR Swap Futures Open Interest Triples Ahead of June Eris Options Launch, New Funding Round
CHICAGO--( BUSINESS WIRE)--Eris Innovations, an intellectual property licensing company and the creator of Eris SOFR Swap futures (Eris SOFR), today announced a new investment round backed by leading trading firms, following a marked rise in Eris SOFR activity at CME Group.
“Eris SOFR Swap futures unlocked a more efficient way to access swap spread risk, combining the precision of OTC markets with the efficiency of listed derivatives,” said Don Wilson, CEO of DRW and co-inventor of the technology behind Eris Innovations.
Eris Innovations completed the investment round to support the launch of Eris Options in June, as well as the continued growth of the Eris SOFR complex, providing capital and strategic alignment with core liquidity providers. Participants include proprietary trading firms and their affiliates such as DRW, DV Trading, BlackEdge Capital, Arb Trading Group, Chicago Trading Company, and TransMarket Group, with DV Trading leading the round. CME Ventures also participated in the transaction.
Recent activity in Eris SOFR reflects accelerating institutional adoption:
Eris Options are designed to deliver swaption-like risk exposure in a standardized, exchange-traded format. The product extends the capital efficiency and operational advantages of Eris SOFR into the options market, offering market participants a new way to manage longer-dated SOFR rate risk.
“The rapid adoption of Eris SOFR demonstrates strong demand for liquid, capital-efficient, listed alternatives to OTC interest rate products,” said Michael Riddle, Chief Executive Officer of Eris Innovations. “This round aligns us with experienced liquidity providers critical to establishing deep, transparent markets for Eris Options.”
“Eris SOFR Swap futures unlocked a more efficient way to access swap spread risk, combining the precision of OTC markets with the efficiency of listed derivatives,” said Don Wilson, CEO of DRW and co-inventor of the technology behind Eris Innovations. “The introduction of options extends that framework by offering more efficient ways of managing swap spread risk in the volatility space.”
“Buy-side hedgers and fund managers are savvier than ever these days, constantly evaluating how to deploy their capital most efficiently to reach their investment objectives, lest they fall behind their competitors,” said Jared Vegosen, Co-Founder of DV Trading. “Having provided liquid markets in Eris SOFR since inception, we are focused on bringing the same depth, consistency, and pricing discipline to Eris Options at launch.”
“SOFR underlies the vast majority of U.S. dollar floating-rate financing, and there is clear demand for more efficient tools to manage volatility in longer-dated exposures,” said Josh Mateffy, Founder and Managing Partner of BlackEdge Capital. “As a leading market maker in CME Group’s interest rate options for more than a decade, BlackEdge is well positioned to help build deep, consistent markets for Eris Options.”
Eris Options will complement CME Group’s existing U.S. Treasury and SOFR complexes. Eris Options feature futures-style margining, similar to forward-premium OTC swaptions, and remove operational burdens associated with swap data repository (SDR) reporting, uncleared margin rules (UMR), and manual trade confirmations.
About Eris Innovations
Eris Innovations is an intellectual property licensing company that partners with global financial exchanges to develop futures products based on its patented product design, the Eris Methodology. Trademarks of Eris Innovations and/or its affiliates include Eris, Eris Innovations, Eris SOFR, Eris Options, and Eris Methodology. For more information on Eris Options, visit erisfutures.com/options.