29 September, 2010 Newedge executes and clears $2 .2014-08-22 · 29 September, 2010 Newedge executes page 1
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29 September, 2010 Newedge executes and clears $2 .2014-08-22 · 29 September, 2010 Newedge executes

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  • 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

    Newedge contacts

    PR Global: Valery Lepinette, Global Head of Press Relations: +33 155 07 2290,


  • PR Europe: Siobhan Janaway, +44 207 676 8051, siobhan.janaway@newedgegroup.com

    PR Americas:Bill Ferri, +1 212 754 5428, bferri@intermarket.com Emily Ahearn, +1 212 909 4781,


    PR Asia: Damien Ryan, +852 6302 6922, damien@ryanfin.com

    Eris Exchange contact: Neal Brady, +1 312 253 9056, neal.brady@erisfutures.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.