CME Group Announces the Launch of Long-Term U.S. Treasury Bond Futures
September 22 2009 - 11:37AM
PR Newswire (US)
'Ultra' Treasury Bond in Response to Customer Demand; Increased
Treasury Issuance CHICAGO, Sept. 22 /PRNewswire-FirstCall/ -- CME
Group, the world's largest and most diverse derivatives
marketplace, today announced the launch of Long-Term U.S. Treasury
Bond futures, or "Ultra" Treasury Bonds, beginning in early first
quarter 2010. This contract will be listed with, and subject to,
the rules and regulations of the CBOT. "The Long-Term Treasury Bond
futures are being launched in response to strong customer demand
for a contract that mimics the duration of a 30-year Treasury
bond," said Robin Ross, CME Group Managing Director of Interest
Rate Products. "The Ultra Bond contract will complement our
existing benchmark U.S. Treasury complex and expand the range of
risk management and trading opportunities for market participants."
Deliverable securities for the new Long-Term Bond future will
comprise cash Treasury bonds with at least 25 years of remaining
term to maturity. By comparison, deliverable securities for the
existing Treasury Bond contract are bonds with remaining terms to
maturity of 15 years or more. The recent fiscal policy shift toward
greater issuance of long-term bonds has enabled CME Group to launch
this contract targeted at this important part of the yield curve.
In all other respects, the specifications for the Ultra Bond
futures closely resemble those for the existing Treasury Bond
contract. They are identical in terms of their notional value,
minimum tick size, contract critical dates, and coupon. Initially,
the Exchange will list three March-quarterly delivery months in the
Ultra Bond futures, beginning with the March 2010 expiry. There
will be no modifications to the currently listed Treasury Bond
futures contract specifications. Additional information about the
Ultra Treasury Bond futures and CME Group's other interest rate
products can be found here:
http://www.cmegroup.com/trading/interest-rates/index.html. As the
world's largest and most diverse derivatives marketplace, CME Group
(http://www.cmegroup.com/) is where the world comes to manage risk.
CME Group exchanges offer the widest range of global benchmark
products across all major asset classes, including futures and
options based on interest rates, equity indexes, foreign exchange,
energy, agricultural commodities, metals, weather and real estate.
CME Group brings buyers and sellers together through its CME Globex
electronic trading platform and its trading facilities in New York
and Chicago. CME Group also operates CME Clearing, one of the
largest central counterparty clearing services in the world, which
provides clearing and settlement services for exchange-traded
contracts, as well as for over-the-counter derivatives transactions
through CME ClearPort . These products and services ensure that
businesses everywhere can substantially mitigate counterparty
credit risk in both listed and over-the-counter derivatives
markets. The Globe logo, CME, Chicago Mercantile Exchange, CME
Group, Globex, E-mini and CME ClearPort are trademarks of Chicago
Mercantile Exchange Inc. CBOT and Chicago Board of Trade are
trademarks of the Board of Trade of the City of Chicago. NYMEX and
New York Mercantile Exchange are trademarks of New York Mercantile
Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All
other trademarks are the property of their respective owners.
Further information about CME Group and its products can be found
at http://www.cmegroup.com/. CME-G DATASOURCE: CME Group CONTACT:
Media, Michael Shore, +1-312-930-2363, or Allan Schoenberg,
+1-312-930-8189, , or Investors, John Peschier, +1-312-930-8491,
all of CME Group Web Site: http://www.cmegroup.com/
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