CME Group T-Bill Futures Surpass 6,000 Contracts in First Week of Trading

Rhea-AI Summary

CME Group's Treasury Bill futures have traded over 6,000 contracts and have open interest of over 1,500 contracts. The futures provide a risk management tool for investors and opportunities for spread trading.

Positive

• T-Bill futures have seen strong trading activity with over 6,000 contracts traded and open interest exceeding 1,500 contracts.
• The introduction of T-Bill futures by CME Group aligns with increased risk transfer in the U.S. Treasury market, with open interest in their Treasury futures reaching $2.4 trillion, a 49% YoY increase.

Negative

• None.

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

FAQ

What is the trading activity for T-Bill futures so far?

T-Bill futures have traded over 6,000 contracts and have open interest exceeding 1,500 contracts.

How can T-Bill futures be used?

T-Bill futures provide a capital-efficient risk management tool and opportunities for inter-commodity spread trading.

What is the overall trend in CME Group's Treasury futures?

Open interest in CME Group's Treasury futures has reached $2.4 trillion, a 49% YoY increase.

Who has participated in trading T-Bill futures?

Over 25 market participants, including market-makers and users, have traded T-Bill futures.

What is the basis for T-Bill futures?

T-Bill futures are cash-settled and based on the 13-week U.S. Treasury Bill auction discount yield.

Are there margin offsets for T-Bill futures?

T-Bill futures receive automatic margin offsets against existing CME Group Interest Rate futures.