CHICAGO, May 4, 2020 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, today
announced it will introduce an enhanced version of its 3-Year
Treasury Note futures contract on July 13,
2020, pending regulatory review. New features will include a
more robust basket of deliverable treasuries and reduced tick
size.
"We are pleased to introduce an enhanced 3-Year Treasury Note
futures contract, which has been designed to meet the evolving
needs of today's treasury market participants," said Agha Mirza, CME Group Global Head of Interest
Rate Products. "Since 2017, 2-Year and 5-Year Treasury Note futures
open interest has rapidly grown in line with stronger end-user
demand for exposure at the short end of the yield curve. The
changes we are announcing today will offer our clients greater
precision and seamless spread trading, which they are seeking amid
increased fixed income volatility."
Additionally, contract updates are expected to improve total
cost and ease of trading for clients by more closely aligning the
contracts with 2-Year Treasury Note futures -- for example,
reducing the contract's tick size from 1/4 of 1/32 to 1/8 of 1/32.
This reflects a similar 2-Year Treasury Note futures tick reduction
in January 2019, which improved
cost-to-trade for participants by as much as 32%.
CME Group will also expand the basket of deliverables for 3-Year
Treasury Note futures to include 7-year treasury notes, with
remaining term to maturity ranging from two years and nine months
to three years. Currently, 3-Year Treasury Note futures have eight
issues evenly split between monthly 3-year and 5-year treasury note
issues.
These 3-Year Treasury Note futures are listed on and subject to
the rules of CBOT. For more information, please visit
cmegroup.com/3year.
As the world's leading and most diverse 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. With a range
of pre- and post-trade products and services underpinning the
entire lifecycle of a trade, CME Group also offers optimization and
reconciliation services through TriOptima, and trade processing
services through Traiana.
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, EBS, TriOptima,
and Traiana are trademarks of BrokerTec Europe LTD, EBS Group LTD,
TriOptima AB, and Traiana, Inc., 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