CBOE takes equity stake in Eris
Options exchange CBOE has taken a minority stake in US rival Eris and announced plans to develop a series of new products ahead of regulatory reforms.
No financial terms were disclosed in an official press
release on Monday, although CBOE said it is optimistic about the potential for
earnings growth over the long term.
The pair plan to launch solutions addressing the impact of
Basel III, European swap clearing and trading mandates and margin for
un-cleared swaps.
Both companies will develop new proprietary products and
indexes across asset classes. There are also plans to collaborate to enhance
distribution of Eris Interest Rate Swap Futures and market data.
"We are pleased to partner with Eris, which has
established itself as a global leader in providing innovative, futurized
product solutions that respond to today's regulatory and market challenges,"
said Edward T. Tilly, chief executive of of CBOE Holdings.
Last October CBOE made a minority investment in CurveGlobal,
a new interest rate derivatives venture of the London Stock Exchange and a
number of major dealer banks.
“Our partnership with Eris, like our partnership in
CurveGlobal, positions CBOE to tap into that opportunity by bringing new
capital efficiencies and exchange-traded products to the interest rate
marketplace,” added Tilly.
Neal Brady, CEO and co-founder of Eris said the alliance provides
Eris with “growth capital for strategic initiatives and aggressive product
expansion.”
“We're thrilled to collaborate with CBOE on new product,
market data and index initiatives, and to provide access to Eris products to CBOE's
global trading community,” he added.
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