CHICAGO, July 26, 2017 /PRNewswire/ -- Following the
Alternative Reference Rate Committee's (ARRC) recent recommendation
that the broad Treasuries repo financing rate should serve as the
reference rate in certain new U.S. dollar derivatives and other
financial instruments, CME Group, the world's leading and most
diverse derivatives marketplace, today announced that it will
develop futures and options on the new benchmark.
Futures and options will launch, pending all regulatory reviews
and approvals, after the Federal Reserve Bank of New York and the U.S. Treasury Office of
Financial Research begin daily publication of the rate, expected in
first half of 2018, and would be subject to the rules and
regulations of the relevant exchanges at CME Group.
"CME Group commends the committee for its thoughtful and
inclusive deliberation during this process," said Agha Mirza, Global Head of Interest Rate
Products at CME Group. "We look forward to developing products on
the broad Treasuries repo financing rate, which is based on
transactions from deep and actively-traded markets."
In the next few months, CME Group will engage with customers in
its product development efforts. CME Group has spent the past
several years exploring products based on similar Treasury repo
rates, which would be complementary to its Federal Fund futures and
Eurodollar futures products.
CME Group serves as a non-voting member of the ARRC. For more
information, please visit www.newyorkfed.org/arrc.
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) is where the world comes to manage
risk. Through its exchanges, CME Group offers 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. CME Group provides electronic trading globally on its
CME Globex platform. The company also offers clearing
and settlement services across asset classes for exchange-traded
and over-the-counter derivatives through its clearinghouses CME
Clearing and CME Clearing Europe. 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
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other trademarks are the property of their respective
owners.
CME-G
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SOURCE CME Group