29 September, 2010 Newedge executes and clears $2 billion in Interest Rate Swap futures on Eris
Chicago, September 29, 2010 Newedge USA, LLC, a global leader in multi-asset clearing and brokerage,
announced today that it has successfully executed and centrally cleared over $2 billion in client interest
rate swaps on the Eris Exchange platform, an exempt board of trade under CFTC regulation, with
clearing services provided by CME Clearing.
Newedges activity since connecting to Eris Exchange in August 2010 demonstrates the effectiveness of
central counterparty clearing of OTC interest rate derivatives and the constructive role a clearing broker
such as Newedge, with its diversified client base and independent business model, can play in the
Newedge, which is currently one of the largest US Futures Commission Merchants (based on customer
segregated funds) according to CFTC rankings, has connected to Eris Exchange for the purpose of
broking between exchange members to execute client interest rate swaps. Counterparties executing
OTC interest rate swap transactions can reduce their risk by trading on Eris Exchange with Newedge as
their executing and clearing firm.
The Eris Exchange Interest Rate Swap futures product is designed to model a standard fixed vs. floating
USD denominated interest rate swap on the 3-month LIBOR index, except accruals are included in the
price. Customer positions will clear through CME Clearing as segregated (30.7) secured accounts.
Newedge is eligible to clear these contracts in its capacity as a CME Class A clearing member. Nicolas
Breteau, Newedge CEO says: Private initiatives such as Eris Exchange can help create a safer
environment for OTC interest rates swaps transactions and clearing. Newedges Eris initiative shows our
commitment to deliver solutions for the IRS asset class, the largest of the OTC derivative markets*. The
fact that we are involved in both the transaction and the clearing was an important factor in our
decision to connect to the Eris Exchange platform. We are fervent supporters of both pricing and post-
trade transparency, and view this as the best way to create value for our buy-side clients.
Newedge is an established participant in cleared OTC commodity swaps through CME ClearPort, ICE
Clear Europe, SGX AsiaClear and the International Derivatives Clearinghouse. The firm also expects to
evaluate and participate as a broker in additional platforms that centrally execute and clear OTC swaps
* According the Bank of International Settlements, globally, interest rate swaps notional amount
outstanding was over $400 trillion as of December 200
PR Global: Valery Lepinette, Global Head of Press Relations: +33 155 07 2290,
PR Europe: Siobhan Janaway, +44 207 676 8051, firstname.lastname@example.org
PR Americas:Bill Ferri, +1 212 754 5428, email@example.com Emily Ahearn, +1 212 909 4781,
PR Asia: Damien Ryan, +852 6302 6922, firstname.lastname@example.org
Eris Exchange contact: Neal Brady, +1 312 253 9056, email@example.com
About Newedge Group
Newedge, a 50/50 joint venture between Socit Gnrale and Crdit Agricole CIB, is a major force in
global multi-asset brokerage business, with a world-leading position in the execution and clearing of
listed derivative products. With a presence more than 20 locations in 17 countries, Newedge offers a full
range of clearing and execution services covering options and futures contracts for financial products
and commodities, as well as for money market instruments, bonds, FX, equities, and commodities on
OTC markets. Newedge provides a range of value added services, including prime brokerage, asset
financing, an electronic platform for trading and order routing, cross margining, and the centralized
reporting of client portfolios. Newedge, which primarily serves institutional clients, provides access to
more than 85 exchanges. Newedge's 2,800+ employees form a close-knit, multinational team that can
innovatively respond to its clients in fast-moving markets.
About Eris Exchange
Eris Exchange is an independent exchange whose founding shareholders are Chicago Trading Company
(CTC), DRW Holdings, GETCO, Infinium Capital Management and Nico Holdings. The founding
shareholders are committed market makers on the platform. Eris has principal offices in Chicago, Illinois
and Fairfax, Virginia. Learn more about Eris at www.erisfutures.com.