CHICAGO, Jan. 10, 2022 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, today
announced it will expand its benchmark U.S. Treasury futures and
options offering with the addition of 20-Year U.S. Treasury Bond
futures on March 7, pending
regulatory review.
The new 20-Year U.S. Treasury Bond futures will allow for
delivery of original issue 20-year U.S. Treasury bonds with
remaining terms to maturity at delivery of at least 19 years 2
months and not more than 20 years.
Complementing CME Group's existing suite of deeply liquid U.S.
Treasury futures and options, which grew more than 15%
year-over-year during 2021 to a record 4.5 million average daily
volume, 20-Year U.S. Treasury Bond futures will offer greater
efficiency and precision in managing exposure at the 20-year
maturity point on the U.S. Treasury curve.
"The introduction of a futures contract on the U.S. Treasury's
20-Year bond responds directly to market need for a hedging tool at
a time when managing U.S. Treasury market risk is more important
than ever," said Agha Mirza, CME
Group Global Head of Rates and OTC Products. "Since the U.S.
Treasury began issuing 20-Year bonds in May
2020, total issuance has been over $450 billion, creating customer demand for a new
product that establishes 20-year yield exposure. As a result, the
design of this new contract represents extensive feedback from a
wide set of clients and the broader fixed income trading
community."
20-Year U.S. Treasury Bond futures will receive automatic margin
offsets against existing interest rate futures upon launch and will
be listed with, and subject to, the rules of the CBOT.
Additionally, these contracts will become eligible for portfolio
margining against other cleared interest rate swaps and futures
shortly after launch.
For more information on this product, please see:
www.cmegroup.com/20y.
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.
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 and EBS are trademarks of BrokerTec Europe LTD and
EBS Group LTD, 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.
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SOURCE CME Group