CHICAGO, March 1, 2018 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, today
announced it will launch monthly and quarterly Secured Overnight
Financing Rate (SOFR) futures on May 7,
2018, pending regulatory review. The futures will be based
on the Alternative Reference Rates Committee-endorsed SOFR index,
scheduled to be published daily by the Federal Reserve Bank of
New York in cooperation with the
U.S. Office of Financial Research beginning on April 3, 2018.
Although correlated with LIBOR and effective federal funds
rates, SOFR, a broad Treasury repo index, is distinct from these
rates.
"We worked extensively with our clients to design SOFR futures,
which in addition to our existing suite of interest rate futures,
will provide clients with new spread trading opportunities and
tools that can be used for investment, risk management and
hedging," said Agha Mirza, CME Group
Global Head of Interest Rate Products.
SOFR futures will provide CME Group clients with execution
efficiency through intercommodity spreads on CME Globex. This
product will also offer capital efficiencies through margin offsets
of up to 85 percent against other CME Group products including
30-Day Federal Funds futures, Eurodollar futures, and 10-Year
T-Note futures.
Monthly and quarterly SOFR futures will be listed by and subject
to the rules of CME. Contract specifications for both Three-Month
and One-Month SOFR Futures are now available at
cmegroup.com/sofrfutures.
As the world's leading and most diverse derivatives marketplace,
CME Group (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
products and metals. Around the world, CME Group brings
buyers and sellers together through its CME Globex® electronic
trading platform. CME Group also operates one of the world's
leading central counterparty clearing providers through CME
Clearing, which offer clearing and settlement services across asset
classes for exchange-traded and over-the-counter
derivatives. CME Group's products and services ensure that
businesses around the world can effectively manage risk and achieve
growth.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex and E-mini are trademarks of Chicago Mercantile Exchange
Inc. CBOT, Chicago Board of
Trade, KCBT and Kansas City Board
of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York
Mercantile Exchange and ClearPort are trademarks of New York
Mercantile Exchange, Inc. COMEX is a trademark of Commodity
Exchange, Inc. Dow Jones, Dow Jones Industrial Average, S&P 500
and S&P are service and/or trademarks of Dow Jones Trademark
Holdings LLC, Standard & Poor's Financial Services LLC and
S&P/Dow Jones Indices LLC, as the case may be, and have been
licensed for use by Chicago Mercantile Exchange Inc. All other
trademarks are the property of their respective owners.
CME-G
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SOURCE CME Group