rts realtime systems demonstrates eris markets through rtd tango trader

WEBCAST@ERISFUTURES.COMCopyright ©2014 Eris Exchange, LLC. All Rights Reserved.

WEBINAR:

RTS Realtime Systems Demonstrates Eris Markets Through RTD Tango Trader

May 1, 2014

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Agenda

• Opening Remarks and Introductions• RTS Realtime Systems Overview• Eris Exchange Interest Rate Swap Futures• How to Trade Eris Markets through RTD Tango Trader

• Eris Standards and Eris Flexes • Flatteners, Steepeners • Calendar Rolls, Swap Spreads, and Invoice Spreads• Set Up a Simple Algo Trade

• Audience Question and Answer

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Speaker Biography

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Mr. Riddle is the Chief Operating Officer of Eris Exchange. Prior to joining Eris Exchange, Mr. Riddle served as Director of Alliance Management at CME Group, where he was responsible for the growth of the CME's international partnerships in Brazil, Dubai, Korea and Mexico. Prior to joining the Chicago Board of Trade in 2002 and transitioning to CME Group during the 2007 acquisition of CBOT, Mr. Riddle worked in the Capital Markets consulting practice for Cap Gemini Ernst & Young. Mr. Riddle earned a bachelor’s degree in economics from Northwestern University, and holds an MBA from the Kellogg School of Management.

Michael Riddle

Chief Operating Officer, Eris Exchange

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Speaker Biography

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Joseph DesnoyersSenior Product Manager, RTS Real Time Systems

Joe Desnoyers joined RTS August 2005 as a Product manager. Prior to joining, he traded US Bonds and Treasury futures. His current position is Team Lead of the US Solution dept. He is responsible for managing all Americas region exchange certifications with Development/QA, deployment of major software and exchange releases.

Joe pioneered and built RTS strong presences in Mexico through MexDer. RTS has been the official front-end for MexDer members in Mexico since 2009.

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RTS Realtime Systems Global Solutions

In order to provide the greatest breadth possible, we constantly add connections to emerging markets and redefine ultra-low latency on existing connections. We also have a local presence in all major trading hubs globally.

• Connectivity to 150+ global exchanges • Co-location services to 95+ venues • 11 Data centers worldwide

Full line of trading solutions including micro-second round-trip latency and superior execution handling for multiple exchanges.

• Algorithmic Trading • Click Trading• Combined Algorithmic and Click Trading

EASY ACCESS TO GLOBAL MARKETS

TRADE WITH A COMPETITIVE EDGE

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RTS Coverage Map and Products

• Sophisticated performance monitoring tools

• Fully optimized customer environments

• Industry leading ultra-low latency to 150 global

markets standard with all platforms

• One-stop-shop solution for all trading needs

• Harness all opportunities through multi-broker

capability

• Managed, maintained and supported by local

RTS experts

Key Advantages

Ultra-low Latency Algorithmic Solution

Algorithmic and Click Trading Front-end

Sophisticated Lightweight Click Trading Front-end

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RTD Tango Trader® is designed to leverage firms’ existing infrastructure and enable more brokers, traders and clients to benefit from customized algorithms.

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Combined Algorithmic and Click Trading Front-end

RTD Tango Trader

• More than 30 customizable analytical indicators

• Full chart analytical package at no extra cost

• Off-the-shelf algos and canned strategies

• Advanced spreading technology

• Inter-market spreads across asset classes      

• Vertical dartboard and Spread Matrix

• Comprehensive pre-trade risk controls

• Integrated algo order book to manage trades

• White label and multi-language capabilities

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Eris Swap Futures

• Futures exchange (DCM)• USD interest rate swap futures• Cleared by CME Group as futures• Contracts are futures through

maturity date• Standardized contracts • Flexible date contracts

• OTC-like yield curve granularity• Trade electronically and traditional

voice execution

• Regulated as futures through maturity date

• Intra-market trading and spreading• Flatteners• Steepeners

• Inter-market trading strategies• Pre-trade credit controls• Open FIX APIs; Engine located in

Chicago at 350 East Cermak • Access provided by CME Futures

Clearing firms (FCMs)

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Historical Eris Swap Futures Open Interest

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Open Interest Record Extends to 6 Quarters

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The Product: Eris Swap Futures

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A futures product solution to Dodd-Frank requirements

Up-front and termination payments

Interest paid on collateral

Fixed and floating

payments

Collateral posted

Variation

Margin

Collateralized IRS OTC Cash Flows

• Unique contract design replicates OTC Swap economics• Contracts can be held until final Maturity as futures contracts (no physical

delivery or mandatory early termination) • Existing OTC Swap curves and models can be used to value Eris Swap

Futures

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Liquidity, transparency and efficiency of futures

Set of 5 quarterly contracts listed with IMM Effective Dates

and short codes

• Can be rolled or held to maturity, as futures (no risk of physical delivery)• Streaming quotes past the Effective Date• 2 day VaR margin through the maturity date• Positions automatically net• $100k contract size

Eris Standards: Quarterly Swap Futures

Streaming Quotes in NPV

per contract

Fixed rate set at listing near par rate

Par Rate Equivalents are

shown below each contract

-278

-680

-3690

-2450

-9880

-274

-640

-2420

-3660

-9820

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Eris Flexes: Date Flexible Swap Futures

Yield curve granularity with accounting treatment of OTC swaps

• Effective Dates: Any good business day up to 10 years out• Maturity Dates: Any good business day up to 30 years

following the Effective Date• Compression tools available for line item management• 5 day VaR margin• RFQ for contracts not being streamed• $100k contract size

Spot starting contracts for

benchmark tenors

Each rate and date combination is a distinct contract; millions of potential contracts

Streaming quotes in par rate terms

Fixed rate assigned at execution

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Eris Spread Trade Scenarios

• Flatteners and Steepeners

• The trade exploits the difference between two points on the

yield curve with a view that the curve will flatten or steepen

• Calendar Spreads

• Discrete spread traded in a separate order book from either of

the order books of the underlying contracts, thereby eliminating

legging risk when rolling from one quarterly contract to the next

• Invoice Spreads

• Trading the differential between swap and treasury yields using

an Eris Swap Future and a treasury future with similar maturities

• Swap Spreads

• Trading the differential between swap and treasury yields using

an Eris Swap Future and a cash treasury with similar maturities

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JUNE(sell)

SEPT(buy)

Rolling Position

Eris Standard 7Y

(buy)

Tsy FutureCTD(buy)

Eris Flex(buy)

Cash Treasury

(buy)

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Thomas Anderson Tel: (312) 604-8423

tom.anderson@us.abnamroclearing.com

Stephane DiTullio Tel: (646) 855-5319

stephane.y.ditullio@baml.com

John Lovisolo Tel: (212) 526-6548

john.lovisolo@barclays.com

Ziad IskandarTel: (212) 471-8033

ziad.iskandar@us.bnpparibas.com

Neil Burke Tel: (212) 538-0761

neil.burke@credit-suisse.com

Matthew WiffenTel: (212) 723-5491

matthew.wiffen@citi.com

Patrick Bobay Tel: (312) 294-8752

patrick.bobay@us.mizuho-sc.com

Mary Foreman Tel: (212) 761-8114

mary.foreman@morganstanley.com

Frank Perry Tel: (312) 441-4603

frank.perry@newedge.com

Michael SchneiderTel: (212) 436-8009

michael.schneider1@nomura.com

Alexander Palese Tel: (212) 618-3369

alex.palese@rbccm.com

John ColemanTel: (312) 373-5190

jcoleman2@rjobrien.com

Christina McCaugheyTel: (212) 259-3127

cmccaughey@statestreet.com

Daniel DormanTel: (312) 341-7041

ddorman@dormantrading.com

Jeff GoreTel: (704) 410-5205

jeffrey.gore@wellsfargo.com

Nicholas MascioTel: (212) 618-2845

nmascio@edfmancapital.com

Justin BiggsTel: (212) 713-3921

justin.biggs@ubs.com

Access Provided by CME Clearing Firms

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Key Resources

• View RTD Tango Trader Tutorial• www.rtsgroup.net/trading/rtd-tango-trader

• Trade Eris Through RTD Tango Today• www.erisfutures.com/EE/RTS_Connectivity.pdf

• Eris Traders’ Corner • www.erisfutures.com/traderscorner

(312) 630-9006Sales.usa@rtsgroup.net

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Contact

(312) 630-9006sales.usa@rtsgroup.net

Contact

(888) 587-2699, select 2Sales@erisfutures.com

Audience Q&A Session

Questions can be sent two ways: • Submit through the webinar tool• Email directly to Webcast@Erisfutures.com