CME Group Announces First Day of Trading of €STR Futures
CME Group has launched a new suite of overnight index futures based on the Euro Short-Term Rate (€STR) as of October 31, 2022. This product includes €STR 3-Month futures and €STR 3-Month Single Contract Basis Spread futures, aimed at providing efficient hedging for European money market rates. The futures support price discovery and risk management across European markets. Major financial institutions like JP Morgan and Citi are backing these contracts, which will be available on CME Globex and cleared via CME ClearPort.
- Launch of €STR futures enhances CME's product offerings in European markets.
- Support from major institutions like JP Morgan and Citi indicates strong market demand.
- Products designed to manage risk effectively in uncertain economic conditions.
- None.
CHICAGO, Oct. 31, 2022 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced the first day of trading of a new suite of overnight index futures based on the Euro Short-Term Rate (€STR).
€STR futures provide an efficient way to hedge European money market rates, with contracts including €STR 3-Month futures and €STR 3-Month Single Contract Basis Spread futures, complemented with €STR vs SOFR inter-commodity spreads. These contracts enable granular price discovery across the forward curve, IBOR/OIS basis trading, as well as managing cross-country basis spreads and price differentials between the E.U. and U.S. interest rates.
"As the world continues to adapt to trading interest rates based on overnight benchmarks, we are pleased to further support the transition by offering €STR futures contracts," said Mark Rogerson, EMEA Head of Interest Rate Products, CME Group. "At a time of continued economic uncertainty, our new futures will help clients price and manage risk in overnight money market and repo rates across European markets."
"JP Morgan is delighted to support trading in €STR futures at CME Group," said Nok To, Managing Director and Head of EMEA STIR Trading at JP Morgan. "The execution strategy that allows simultaneous trading vs. SOFR futures provides the hedges we need in our cross currency and forward foreign exchange businesses."
"Citi is keen to adopt trading in €STR futures at CME Group," said Akshay Singal, Head of EMEA STIR Trading at Citi. "Managing basis risk via the innovative Single Contract Basis Spread futures directly addresses the needs of the market and our customers."
Available to trade on CME Globex and for submission of clearing via CME ClearPort, €STR futures will be subject to the rules of CME, cleared by CME Clearing, and will receive automatic margin offsets against existing CME Group interest rate futures upon launch.
For more information on this product, please see: www.cmegroup.com/european-rates-futures.
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. 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
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