CME Group U.S. Credit Futures to Begin Trading on June 17

Rhea-AI Summary

CME Group is set to launch new credit futures based on Bloomberg's corporate bond indexes on June 17, 2024. These futures will offer greater flexibility for risk management by allowing market participants to manage duration risk and credit component risk. The contracts will be based on the Bloomberg U.S. Corporate Index and the Bloomberg U.S. High Yield Very Liquid Index.

• New contracts based on Bloomberg corporate bond indexes will bring greater flexibility for risk management

CHICAGO, April 23, 2024 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that its new credit futures are scheduled to begin trading on Monday, June 17, 2024, pending regulatory review.

Launching alongside the company's leading U.S. Treasury complex, CME Group credit futures will be 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.

"Since announcing our expansion into credit futures earlier this year, we have received very positive feedback from market participants with exposure to credit, interest rates, equities and other assets," said Agha Mirza, CME Group Global Head of Rates and OTC Products. "Designed for efficiency, our credit futures will support spread trading with automatic margin offsets against our Interest Rate and Equity Index futures."

The contracts will be based on the Bloomberg U.S. Corporate Index, which measures the performance of investment grade corporate bonds, and the Bloomberg U.S. High Yield Very Liquid Index, which is designed to measure a liquid, diversified component of the high yield corporate bond market.

"CME Group's upcoming launch of futures based on the Bloomberg U.S. Corporate Bond Indices supports the continued advancement of fixed income markets," said Umesh Gajria, Global Head of Index Linked Products, Bloomberg Index Services Limited. "These credit futures can provide a capital efficient vehicle for investors to manage their exposures and risks to their bond portfolios through the derivatives market."

Available to trade on CME Globex and eligible for submission to clearing via CME ClearPort, U.S. Corporate Bond Index futures will be listed with, and subject to, the rules of CME.

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.

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SOURCE CME Group

FAQ

When will CME Group's new credit futures begin trading?

CME Group's new credit futures are scheduled to begin trading on June 17, 2024.

What indexes will the new credit futures be based on?

The new credit futures will be based on the Bloomberg U.S. Corporate Index and the Bloomberg U.S. High Yield Very Liquid Index.

How can market participants manage duration risk with the new credit futures?

Market participants can manage duration risk through an intercommodity spread with U.S. Treasury futures using CME Group's new credit futures.

What type of risk can investors manage with the new credit futures?

Investors can manage credit component risk through futures on Bloomberg's duration-hedged index using CME Group's new credit futures.

Where can investors find more information about CME Group's credit futures?

For more information, investors can visit www.cmegroup.com/credit.