CME Group U.S. Credit Futures Exceed 400 Contracts in First Week of Trading

Rhea-AI Summary

CME Group announced that its newly launched U.S. Credit futures surpassed 400 contracts traded in the first week. These futures, launched on June 17, offer a more capital-efficient method for managing duration risk and U.S. credit exposure.

The products have demonstrated bid-offer spreads lower than 0.1% and provide access to an anonymous, centralized marketplace. Matthew Angelucci from PGIM Fixed Income highlighted the benefits of these futures in hedging portfolios and enhancing liquidity.

CME's credit futures allow for the management of duration risk through intercommodity spreads with U.S. Treasury futures and exposure to Bloomberg's duration-hedged index, with automatic margin offsets against CME's Interest Rate and Equity Index futures.

Positive

• Over 400 contracts of U.S. Credit futures traded in the first week.
• Bid-offer spreads lower than 0.1% of index points.
• Access to an anonymous, centralized marketplace.
• Margin offsets with CME Group's Interest Rate and Equity Index futures.

Negative

• None.

News Market Reaction

-0.50%

1 alert

-0.50% News Effect

On the day this news was published, CME declined 0.50%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

CHICAGO, June 25, 2024 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that its new U.S. Credit futures have traded 415 contracts since their launch on June 17.

"In just one week since launch, our credit futures are generating strong trading activity as clients turn to more capital efficient ways to manage their duration risk and U.S. credit exposure," said Agha Mirza, CME Group Global Head of Rates and OTC Products. "These products have already provided bid-offer spreads lower than 0.1% of index points, as well as offered access to an anonymous, centralized marketplace with significant potential margin offsets."

"We welcome the new credit index futures at CME Group," said Matthew Angelucci, Portfolio Manager at PGIM Fixed Income. "The opportunity to isolate credit or duration risk while benefiting from margin offsets with CME Group's deeply liquid futures markets enables us to hedge our portfolios and provide greater liquidity to a greater number of clients."

CME Group credit futures are the first futures contracts to help market participants manage duration risk through an intercommodity spread with U.S. Treasury futures. In addition, for the first time ever, investors can gain exposure to and manage credit component risk through futures on Bloomberg's duration-hedged index. Clients can benefit from automatic margin offsets against CME Group's Interest Rate and Equity Index futures.

For more information, please visit www.cmegroup.com/credit.

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 is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index and the S&P 500 Dividend Points Index (Annual) are products 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 indices and trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the Indices 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-us-credit-futures-exceed-400-contracts-in-first-week-of-trading-302181726.html

SOURCE CME Group

FAQ

When did CME Group's U.S. Credit futures launch?

CME Group's U.S. Credit futures launched on June 17, 2024.

How many U.S. Credit futures contracts were traded in the first week?

Over 400 contracts of U.S. Credit futures were traded in the first week.

What is the bid-offer spread for CME Group's U.S. Credit futures?

The bid-offer spreads for CME Group's U.S. Credit futures are lower than 0.1% of index points.

What advantages do CME Group's U.S. Credit futures offer?

CME Group's U.S. Credit futures offer lower bid-offer spreads, access to an anonymous, centralized marketplace, and margin offsets with Interest Rate and Equity Index futures.

How do CME Group's U.S. Credit futures help manage duration risk?

CME Group's U.S. Credit futures help manage duration risk through intercommodity spreads with U.S. Treasury futures.