Morgan Stanley to Take Strategic Equity Stake in Eris Exchange
Morgan Stanley to become an Anchor Bank Liquidity Provider for Eris Exchange
Interest Rate Swap Futures
NEW YORK -- December 20, 2012
Morgan Stanley (NYSE: MS) and Eris Exchange announced today that Morgan
Stanley plans to make a strategic equity investment in Eris, a U.S. futures
exchange that offers Interest Rate Swap Futures. Morgan Stanley also plans to
participate on the exchange as a provider of liquidity and clearing services.
Financial details were not disclosed.
As part of the arrangement, which is expected to close in early 2013, Morgan
Stanley will join the board of directors of the exchange holding company.
“As the traditional OTC rates swap market undergoes significant structural,
economic and regulatory changes, Morgan Stanley believes that Eris Exchange
and its futurized swaps are ideally suited to provide our clients with
flexible alternatives,” said Patrick Haskell, Head of Liquid Flow Rates in the
U.S. for Morgan Stanley.
“Eris Exchange is excited to welcome Morgan Stanley as an anchor bank
liquidity provider, equity investor and member of our board,” said Neal Brady,
CEO of Eris Exchange. “Morgan Stanley’s commitment to stream two-sided markets
across the yield curve in quarterly Eris Standards and daily Eris Flexes
ensures that end user clients will benefit from the institutional liquidity of
Morgan Stanley’s leading rates trading team, and complements our set of
existing liquidity providers.”
Morgan Stanley has initiated its integration with the Eris SwapBook^(TM)
electronic trading platform and will commence providing electronic and block
trade liquidity for both Eris Standards and Eris Flexes in early 2013.
Eris Exchange recently launched Eris Standards, interest rate swap futures
contracts with quarterly effective dates and pre-determined fixed rates that
currently provide margin savings of 40-80% compared to cleared OTC interest
In addition, Eris Flexes offer the date and rate flexibility necessary to
replicate many OTC trading structures, ranging from daily, spot-starting swaps
to highly customized structures. This flexibility, which is unique to Eris
Flexes, appeals to hedgers looking to obtain FAS133 hedge accounting
treatment, and to relative value funds and asset managers isolating exposure
to specific points on the swap curve.
About Morgan Stanley
Morgan Stanley is a leading global financial services firm providing a wide
range of investment banking, securities, investment management and wealth
management services. The Firm's employees serve clients worldwide including
corporations, governments, institutions and individuals from more than 1,200
offices in 43 countries. For further information about Morgan Stanley, please
About Eris Exchange
Eris Exchange is a futures exchange (Designated Contract Market) regulated by
the CFTC. Its U.S. Dollar-denominated Eris Exchange Interest Rate Swap Futures
contract clears at CME Clearing, embeds the cash flows of an OTC interest rate
swap, and provides significant capital savings to clients through portfolio
margining with CME Eurodollars, Treasury futures and Deliverable Swap Futures
positions. For more information, please visit www.erisfutures.com or ERIS<go>
Mark Lake, 212-761-8493
Christopher Rodriguez, 212-561-5472
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