Chicago and London - Eris Exchange and Cassini Systems have announced that Eris will offer analytical tools powered by Cassini that show end-users how to generate initial margin savings by replacing OTC Swaps with Eris Swap Futures, while retaining the risk exposure of the portfolio.
Eris is a U.S.-based futures exchange offering cash-settled swap futures as an alternative to traditional OTC swaps. Cassini offers a pre-trade platform for OTC trading that combines risk, limits, fees, margin and collateral in a set of decision support analytics. This set of tools allows for what-if scenarios yielding the lowest margin, as well as other portfolio cost analytics.
The Eris-sponsored access to the Cassini offering will allow clients to identify portfolios of Eris Swap Futures that can lower initial margins in excess of 50%. End users submit a sample portfolio of OTC IRS, or a delta ladder, and the analytics powered by Cassini generate a report detailing the replacement portfolio of margin efficient Eris positions. This service is being offered free of charge.