CME Group SOFR Open Interest Surpasses Record 60 Million Contracts

Rhea-AI Summary

CME Group (CME) sets new record for SOFR complex open interest, reaching 60,435,467 contracts on December 12, with average daily volume hitting 5.1 million contracts. Agha Mirza, CME Group Global Head of Rates and OTC Products, highlights the broad participation from global banks, hedge funds, asset managers, and principal trading firms in SOFR futures and options.

Positive

• Record open interest and average daily volume in SOFR complex demonstrate strong market demand and adoption.
• Global market participants continue to turn to SOFR futures and options for hedging short-term interest rate risk, indicating their trust in CME Group's products.
• Broad participation from various types of traders, including global banks, hedge funds, and asset managers, showcases the widespread use and acceptance of SOFR futures and options.

Negative

• None.

CHICAGO, Dec. 14, 2023 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that open interest in its deeply liquid SOFR complex set a new record of 60,435,467 contracts on December 12, including 48.3 million options contracts and 12.1 million futures contracts. Average daily volume (ADV) in SOFR futures and options this year also reached a record 5.1 million contracts.

"As the world's leading tools for hedging short-term interest rate risk, global market participants continue to turn to our SOFR futures and options to navigate uncertainty," said Agha Mirza, CME Group Global Head of Rates and OTC Products. "We are pleased with the ongoing growth of our SOFR complex, which now exceeds the highest annual ADV that Eurodollar futures and options reached in their four-decade history."

SOFR futures and options have broad participation from global banks, hedge funds, asset managers, principal trading firms and other types of traders. These contracts are also eligible for portfolio margining against other cleared interest rate swaps and futures.

CME Group launched SOFR futures in May 2018 and SOFR options in January 2020.

SOFR futures and options are listed with and subject to the rules of CME. For more information, please visit www.cmegroup.com/sofr.  

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

View original content:https://www.prnewswire.com/news-releases/cme-group-sofr-open-interest-surpasses-record-60-million-contracts-302015633.html

SOURCE CME Group

FAQ

What is the record open interest for CME Group's SOFR complex?

CME Group's SOFR complex set a new record of 60,435,467 contracts on December 12.

What is the average daily volume (ADV) for SOFR futures and options?

The ADV for SOFR futures and options reached a record 5.1 million contracts.

Who highlighted the broad participation in SOFR futures and options?

Agha Mirza, CME Group Global Head of Rates and OTC Products, emphasized the broad participation from global banks, hedge funds, asset managers, and principal trading firms in SOFR futures and options.

When were SOFR futures and options launched by CME Group?

CME Group launched SOFR futures in May 2018 and SOFR options in January 2020.

What types of traders participate in SOFR futures and options?

SOFR futures and options have broad participation from global banks, hedge funds, asset managers, principal trading firms, and other types of traders.