- New contracts based on Bloomberg corporate bond indexes
will bring greater flexibility for risk management
CHICAGO, April 23,
2024 /PRNewswire/ -- CME Group, the world's leading
derivatives marketplace, today announced that its new credit
futures are scheduled to begin trading on Monday, June 17, 2024, pending regulatory
review.
Launching alongside the company's leading U.S. Treasury complex,
CME Group credit futures will be the first futures contracts to
help market participants manage duration risk through an
intercommodity spread with U.S. Treasury futures. In addition, for
the first time ever, investors can gain exposure to and manage
credit component risk through futures on Bloomberg's
duration-hedged index.
"Since announcing our expansion into credit futures earlier this
year, we have received very positive feedback from market
participants with exposure to credit, interest rates, equities and
other assets," said Agha Mirza, CME
Group Global Head of Rates and OTC Products. "Designed for
efficiency, our credit futures will support spread trading with
automatic margin offsets against our Interest Rate and Equity Index
futures."
The contracts will be based on the Bloomberg U.S. Corporate
Index, which measures the performance of investment grade corporate
bonds, and the Bloomberg U.S. High Yield Very Liquid Index, which
is designed to measure a liquid, diversified component of the high
yield corporate bond market.
"CME Group's upcoming launch of futures based on the Bloomberg
U.S. Corporate Bond Indices supports the continued advancement of
fixed income markets," said Umesh
Gajria, Global Head of Index Linked Products, Bloomberg
Index Services Limited. "These credit futures can provide a capital
efficient vehicle for investors to manage their exposures and risks
to their bond portfolios through the derivatives market."
Available to trade on CME Globex and eligible for submission to
clearing via CME ClearPort, U.S. Corporate Bond Index futures
will be listed with, and subject to, the rules of CME.
For more information, please visit www.cmegroup.com/credit.
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 and
the S&P 500 Dividend Points Index (Annual) are products 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 indices and trademarks have
been licensed for use by Chicago Mercantile Exchange Inc. Futures
contracts based on the Indices 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