CHICAGO, Oct. 18, 2015 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, today
announced the launch of the Ultra 10-Year U.S. Treasury Note
futures and options for early in the first quarter of 2016.
These contracts will be listed with, and subject to, the rules and
regulations of the CBOT, pending certification of contract terms
and conditions with the CFTC and completion of all applicable
regulatory review periods.
The new Ultra 10-Year U.S. Treasury Note futures will allow for
delivery of original issue 10-year U.S. Treasury notes with
remaining terms to maturity at delivery of at least 9 years 5
months and not more than 10 years. By comparison, the
existing 10-Year U.S. Treasury Note futures (6 ½ to 10-Year),
allows for delivery of 7-Year and 10-Year U.S. Treasury Notes with
remaining terms to maturity at delivery of at least 6 years 6
months and not more than 10 years. The existing contract will
remain unchanged.
"CME Group worked diligently with the trading community and
conducted an extensive market validation process of three potential
contract designs since July 2015,"
said Agha Mirza, CME Group Global
Head of Interest Rate Products. "The chosen design, based on
customer feedback, more precisely reflects exposure of 10-year U.S.
Treasury notes, the benchmark for U.S. Treasury securities, and
best serves the risk management needs of the marketplace."
Due to the U.S. Treasury Department's suspension of 30-year bond
issuance between 2001 and 2006, the gap in the exposures of the
existing 10-Year U.S. Treasury Note and the U.S. Treasury Bond
futures has expanded from approximately 8 years to about 14 years,
creating customer demand for a new product that establishes 10-year
yield exposure.
The Ultra 10-Year U.S. Treasury Note futures and options
contracts will receive automatic margin offsets against existing
interest rate futures upon launch, and will become eligible for
Portfolio Margining of CME Cleared Interest Rate Swaps and Futures
shortly after launch.
Initially, CME Group will list three March-quarterly delivery
months, beginning with the March 2016
expiry. Other than the delivery basket, the specifications
for the Ultra 10-Year U.S. Treasury Note futures and options
contracts closely resemble those for the existing 10-Year U.S.
Treasury Note futures and options contracts. They are
identical in terms of their notional value, minimum tick size,
contract critical dates, and conversion factor yield.
For more information, please click here.
About CME Group
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 commodities,
metals, weather and real estate. CME Group brings buyers and
sellers together through its CME Globex® electronic trading
platform, its trading facilities in New
York and Chicago, and
through its London-based CME
Europe derivatives exchange. CME Group also operates one of
the world's leading central counterparty clearing providers through
CME Clearing and CME Clearing Europe, which offer clearing and
settlement services across asset classes for exchange-traded
contracts and over-the-counter derivatives transactions.
These products and services ensure that businesses everywhere can
substantially mitigate counterparty credit risk.
CME Group is a trademark of CME Group Inc. The Globe Logo, CME,
Globex and Chicago Mercantile Exchange are trademarks of Chicago
Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the
Board of Trade of the City of
Chicago, Inc. NYMEX, New York Mercantile Exchange and
ClearPort are registered trademarks of New York Mercantile
Exchange, Inc. COMEX is a trademark of Commodity Exchange,
Inc. KCBOT, KCBT and Kansas
City Board of Trade are trademarks of The Board of Trade of
Kansas City, Missouri, Inc.
All other trademarks are the property of their respective owners.
Further information about CME Group (NASDAQ: CME) and its products
can be found at www.cmegroup.com.
CME-G
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SOURCE CME Group