CME Group to Launch T-Bill Futures on October 2, as U.S. Treasury Futures Open Interest Hits Record 19.8 Million Contracts

Rhea-AI Summary

CME Group to launch U.S. Treasury Bill futures on October 2, amid record demand for U.S. Treasury futures. Open interest reached 19,814,295 contracts for the first time on August 23.

Positive

• Expansion of benchmark interest rates offering with T-Bill futures
• Record demand and open interest in U.S. Treasury futures

Negative

• None.

CHICAGO, Sept. 5, 2023 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that it will expand its benchmark interest rates offering with the launch of U.S. Treasury Bill (T-Bill) futures on October 2, pending regulatory review. The new T-Bill futures contract will begin trading amid record demand for CME Group U.S. Treasury futures, with open interest reaching 19,814,295 contracts for the first time on August 23.

"As we continue to see record risk transfer in the U.S. Treasury market, our new T-Bill futures will enable clients to hedge exposure to short-term debt with the same value proposition offered across our U.S. Treasury and SOFR complexes," said Agha Mirza, CME Group Global Head of Rates and OTC Products. "With open interest approaching an unprecedented 20 million contracts, we are also seeing a record number of large open interest holders in U.S. Treasury futures, which advances efficiencies, deep liquidity and a share of volume that exceeds associated cash markets."  

Adding to the CME Group short-term interest rate (STIR) product portfolio, T-Bill futures will be cash-settled and based on the 13-week U.S. Treasury Bill auction discount yield.

T-Bill futures will receive automatic margin offsets against existing CME Group Interest Rate futures upon launch and will be listed with, and subject to, the rules of CME. Additionally, these contracts will become eligible for portfolio margining against other cleared interest rate swaps and futures shortly after launch.

Open interest in the company's current suite of deeply liquid U.S. Treasury futures has grown to $2.4 trillion in 2023, an increase of 49% year-over-year, with a record average daily volume of 5.2 million contracts.

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.

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SOURCE CME Group