CHICAGO, Aug. 5, 2022
/PRNewswire/ -- CME Group, the world's leading derivatives
marketplace, today announced it will launch European Overnight
Index futures based on RepoFunds Rate (RFR) benchmarks and the Euro
Short-Term Rate (€STR) in Q4 2022, pending regulatory review.
RFR futures will be cash-settled contracts based on RFR
benchmarks, a robust measure of overnight funding costs. The
benchmarks are derived from centrally cleared repo trades executed
on BrokerTec, a leading provider of electronic trading platforms
and technology services in fixed income markets owned by CME Group,
and MTS, a leading European electronic fixed income trading
platform, part of the Euronext group. RFR benchmarks are
administered by CME Group Benchmark Administration Limited
(CBA).
"Our new European Overnight Index futures will support customers
with liquid and capital efficient tools for hedging overnight money
market and repo rates in European markets," said Sean Tully, CME Group Global Head of Rates and
OTC Products. "At a time of geopolitical uncertainty and
large-scale transitions in monetary policy, we continue to provide
market participants with new tools to meet their evolving risk
management needs. In addition to our increasingly liquid SOFR
futures that help customers manage interest rate exposure in the
U.S., our new European futures will help our customers manage
sovereign debt risk in Europe."
Available to trade on CME Globex and for submission of clearing
via CME ClearPort, European Overnight Index futures will be
subject to the rules of CME, cleared by CME Clearing, and will
receive automatic margin offsets against existing interest rate
futures upon launch.
For more information on this product, please see:
www.cmegroup.com/european-rates-futures.
About CME Group
As the world's leading derivatives marketplace, CME Group
(www.cmegroup.com) enables clients to trade futures, options, cash
and OTC markets, optimize portfolios, and analyze data – empowering
market participants worldwide to efficiently manage risk and
capture opportunities. CME Group exchanges offer the widest range
of global benchmark products across all major asset classes based
on interest rates, equity indexes, foreign
exchange, energy, agricultural
products and metals. The company offers futures and
options on futures trading through the CME Globex platform, fixed
income trading via BrokerTec and foreign exchange trading on the
EBS platform. In addition, it operates one of the world's leading
central counterparty clearing providers, CME Clearing. CME Group
Benchmark Administration Limited (CBA) capitalizes on CME Group's
wealth of transaction-based data in the calculation of its indices
and benchmarks. CBA is registered under Benchmarks (Amendment and
Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) is
authorized and supervised by the UK Financial Conduct Authority
(FCA) and is aligned to the IOSCO Principles for Financial
Benchmarks.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex, and, E-mini are trademarks of Chicago Mercantile
Exchange Inc. CBOT and Chicago 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. BrokerTec and EBS are
trademarks of BrokerTec Europe LTD and EBS Group LTD,
respectively. 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