CBOE takes equity stake in Eris

CBOE takes equity stake in Eris

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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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