CHICAGO, Oct. 10,
2023 /PRNewswire/ -- CME Group, the world's
leading derivatives marketplace, today announced that its Treasury
Bill (T-Bill) futures, launched on October
2, have traded more than 6,000 contracts, with open interest
exceeding 1,500 contracts.
"In just one week, it is clear that clients are turning to our
new T-Bill futures to hedge against the yield risk of 13-week U.S.
Treasury securities," said Agha
Mirza, CME Group Global Head of Rates and OTC Products.
"With more investors gaining exposure to short-term U.S. government
debt, T-Bill futures can provide a capital-efficient risk
management tool with opportunities for inter-commodity spread
trading and margin offsetting."
"J.P. Morgan is excited to participate in the new T-Bill futures
contracts at CME Group," said Eric
Birenberg, Head of Short Duration Rates Trading at J.P.
Morgan. "Trading in spreads between SOFR futures and T-Bill futures
will be an important tool in the toolkit, helping us efficiently
hedge our risk in the asset class and provide greater liquidity to
our clients."
"DRW is excited to support the development of trading in CME
Group T-Bill futures, which allow for the specific hedging of
T-Bill portfolios," said Andrew
Hennelly, DRW Co-Head of Global Treasury.
CME Group's introduction of T-Bill futures corresponds with
record risk transfer in the U.S. Treasury market. Across the yield
curve, open interest in the company's current suite of deeply
liquid U.S. Treasury futures has reached $2.4 trillion in 2023, an increase of 49%
year-over-year, with a record average daily volume of 5.4 million
contracts year-to-date.
Since last week's launch, more than 25 market participants have
traded T-Bill futures, with an approximately even split of volume
between market-makers and users. T-Bill futures are cash-settled
and based on the 13-week U.S. Treasury Bill auction discount yield.
T-Bill futures are listed with, and subject to, the rules of
CME, receiving automatic margin offsets against existing CME Group
Interest Rate futures. These contracts will become eligible for
portfolio margining against other cleared interest rate swaps and
futures shortly after launch.
For more information on T-Bill futures from CME Group, please
see: https://www.cmegroup.com/tbill.
About CME Group
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 and EBS are trademarks of BrokerTec Europe
LTD and EBS Group LTD, respectively. The S&P 500 Index is a
product 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 trademarks
have been licensed for use by Chicago Mercantile Exchange Inc.
Futures contracts based on the S&P 500 Index 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