CHICAGO, July 25,
2024 /PRNewswire/ -- CME Group, the world's
leading derivatives marketplace, today announced plans to launch
Adjusted Interest Rate S&P 500 (AIR) Total Return (SOFR)
futures on August 26, pending
regulatory review.
AIR Total Return futures on U.S. indices are designed to provide
total return exposure with an overnight floating rate built in. The
model for the new AIR S&P 500 Total Return futures remains the
same; however, the new product will use the Secured Overnight
Financing Rate (SOFR) as the embedded rate instead of the current
Effective Federal Funds Rate (EFFR).
"As SOFR has become the preferred industry benchmark rate for
short-term U.S. overnight financing, the addition of a SOFR-based
AIR TRF contract will complement our current offerings and provide
additional flexibility for managing swap exposure," said
Paul Woolman, Global Head of Equity
Index Products at CME Group. "Year-to-date, we have seen record
average daily volume of 9,800 contracts in our existing suite of
AIR Total Return futures, up more than 113% year-over-year,
underscoring the demand for effective and cost-efficient
alternatives to OTC equivalents."
AIR Total Return futures, based on the EFFR, are available
across a range of major global indices – S&P 500, Nasdaq-100,
Russell 1000, Russell 2000, Dow Jones Industrial Average, and the
FTSE 100.
Launched in May 2018, CME Group
SOFR futures have become the leading tool for hedging short-term
interest rates, with a year-to-date average daily volume of 3.3
million contracts. Building on the growth and liquidity of the
existing AIR TRF suite, these new SOFR-based contracts will combine
the risk management strengths of CME Group's Equity Index and
Interest Rate franchises.
For more information on these products, please visit
www.cmegroup.com/sofrairtrf.com.
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, 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 is a trademark of BrokerTec Americas LLC
and EBS is a trademark of EBS Group LTD. The S&P 500 Index is a
product of S&P Dow Jones Indices LLC ("S&P DJI").
"S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are
trademarks of Standard & Poor's Financial Services LLC; Dow
Jones®, DJIA® and Dow Jones Industrial Average are service and/or
trademarks of Dow Jones Trademark Holdings LLC. These trademarks
have been licensed for use by Chicago Mercantile Exchange Inc.
Futures contracts based on the S&P 500 Index are not sponsored,
endorsed, marketed, or promoted by S&P DJI, and S&P DJI
makes no representation regarding the advisability of investing in
such products. All other trademarks are the property of their
respective owners.
CME-G
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SOURCE CME Group