RTS Realtime Systems demonstrates Eris markets through RTD Tango Trader

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See the presentation of RTS Realtime Systems and Eris Futures Exchange webinar. • Brief introduction to RTS Realtime Systems and RTD Tango Trader • Overview of Eris Exchange and the benefits of Eris Swap Futures. • In the recorded webinar we demonstrate through RTD Tango Trader how to trade Eris Standards and Flexes, Spreading Functionality including Calendar Rolls, Invoice Spreads, and Swap Spreads, wrapping up with the set-up of basic algo trade.

Transcript of RTS Realtime Systems demonstrates Eris markets through RTD Tango Trader

  • 1. [email protected] Copyright 2014 Eris Exchange, LLC. All Rights Reserved. WEBINAR: RTS Realtime Systems Demonstrates Eris Markets Through RTD Tango Trader May 1, 2014

2. [email protected] 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 2 3. [email protected] Speaker Biography 3 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 bachelors degree in economics from Northwestern University, and holds an MBA from the Kellogg School of Management. Michael Riddle Chief Operating Officer, Eris Exchange 4. [email protected] Speaker Biography 4 Joseph Desnoyers Senior 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. 5. [email protected] 5 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 6. [email protected] 6 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 7. [email protected] RTD Tango Trader is designed to leverage firms existing infrastructure and enable more brokers, traders and clients to benefit from customized algorithms. 7 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 8. [email protected] 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) 8 9. [email protected] Historical Eris Swap Futures Open Interest 9 Open Interest Record Extends to 6 Quarters 10. [email protected] The Product: Eris Swap Futures 10 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 11. [email protected] 11 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 12. [email protected] 12 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 13. [email protected] 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 13 JUNE (sell) SEPT (buy) Rolling Position Eris Standard 7Y (buy) Tsy Future CTD (buy) Eris Flex (buy) Cash Treasury (buy) 14. [email protected] Thomas Anderson Tel: (312) 604-8423 [email protected] Stephane DiTullio Tel: (646) 855-5319 [email protected] John Lovisolo Tel: (212) 526-6548 [email protected] Ziad Iskandar Tel: (212) 471-8033 [email protected] Neil Burke Tel: (212) 538-0761 [email protected] Matthew Wiffen Tel: (212) 723-5491 [email protected] Patrick Bobay Tel: (312) 294-8752 [email protected] Mary Foreman Tel: (212) 761-8114 [email protected] Frank Perry Tel: (312) 441-4603 [email protected] Michael Schneider Tel: (212) 436-8009 [email protected] Alexander Palese Tel: (212) 618-3369 [email protected] John Coleman Tel: (312) 373-5190 [email protected] Christina McCaughey Tel: (212) 259-3127 [email protected] Daniel Dorman Tel: (312) 341-7041 [email protected] Jeff Gore Tel: (704) 410-5205 [email protected] Nicholas Mascio Tel: (212) 618-2845 [email protected] Justin Biggs Tel: (212) 713-3921 [email protected] Access Provided by CME Clearing Firms 14 15. [email protected] 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) 630-9006 [email protected] 15 16. [email protected] 16 Contact (312) 630-9006 [email protected] Contact (888) 587-2699, select 2 [email protected] Audience Q&A Session Questions can be sent two ways: Submit through the webinar tool Email directly to [email protected]