CME Group Achieves Record Open Interest and Volume in Adjusted Interest Rate Total Return Futures

Rhea-AI Summary

CME Group achieved a record open interest of 268,073 contracts in S&P 500 Adjusted Interest Rate (AIR) Total Return futures on October 5, 2022, surpassing the previous record of 267,754 contracts from September 30, 2022. Year-over-year, the average daily volume of AIR Total Return futures increased by 54%, and open interest rose by 87%. This surge is driven by firms facing higher capital requirements under the Uncleared Margin Rules, leading them to prefer cleared alternatives like AIR futures to manage risks efficiently.

Positive

• Record open interest of 268,073 contracts for AIR Total Return futures.
• 54% year-over-year increase in average daily volume.
• 87% year-over-year growth in open interest.

Negative

• None.

CHICAGO, Oct. 7, 2022 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that S&P 500 Adjusted Interest Rate (AIR) Total Return futures reached an open interest (OI) record of 268,073 contracts on October 5, surpassing the prior record of 267,754 contracts on September 30, 2022.

Additionally, cumulative AIR Total Return futures average daily volume is up a record 54% year over year, and OI is up a record 87% year over year.

"We're pleased with the record volume and participation our Total Return contracts are generating," said Paul Woolman, CME Group Executive Director of Equity Products. "As Phase 6 of the Uncleared Margin Rules takes effect, a record number of firms are now subject to higher capital requirements and increased operational costs for OTC total return swaps. As a result, a variety of clients are substituting cleared alternatives like our AIR Total Return futures to implement their OTC strategies in a listed market that delivers similar exposure and cost efficiency while eliminating counterparty risk and enabling more efficient capital usage."

AIR Total Return futures are available across a range of major global indices – Nasdaq-100, FTSE 100, Russell 1000, Russell 2000, Dow Jones Industrial Average, and the S&P 500.

For more information on this product, please visit https://www.cmegroup.com/trading/equity-index/us-index/air-total-return-index-futures.html.

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. 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

FAQ

What is the significance of the new record open interest for CME (CME Group)?

The new record open interest of 268,073 contracts in S&P 500 AIR Total Return futures signifies increased market participation and demand for these products, indicating a robust trading environment.

How much did the average daily volume of AIR Total Return futures increase for CME (CME Group)?

The average daily volume of AIR Total Return futures increased by 54% year-over-year.

What regulatory changes are influencing the demand for CME (CME Group) AIR Total Return futures?

The Uncleared Margin Rules are prompting firms to seek cleared alternatives like AIR Total Return futures due to higher capital requirements and operational costs associated with OTC swaps.

When did CME (CME Group) achieve the record open interest for AIR Total Return futures?

CME Group achieved the record open interest on October 5, 2022.