Group Co.
CME Group to Launch SOFR Options in January 2020
Traders Magazine Online News, September 10, 2019
CME Group, a derivatives marketplace, announced that it will launch options on Three-Month Secured Overnight Financing Rate (SOFR) futures starting on Jan. 6, 2020, pending regulatory review.
"Today, CME Group is the only exchange offering customers a holistic SOFR solution covering the entire yield curve," said Agha Mirza, Global Head of Interest Rate Products at CME Group. "Offering options on futures builds on our ever-growing SOFR ecosystem and deep expertise in listed interest rate options, and provides clients with another solution for managing exposure to interest rate price risk around the world."
Since their launch in May 2018, more than 195 global market participants have traded over 6.3 million SOFR futures contracts at CME Group. A record 120 large open interest holders held open positions in SOFR futures as of Aug. 27, 2019. Additionally, open interest surpassed a record 283,000 contracts on Aug. 30, 2019.
SOFR futures trade alongside highly liquid Eurodollar, Fed Fund and Treasury futures to offer customers enhanced spread trading capabilities through CME Group's electronic trading platform, CME Globex, and capital efficiencies via margin offsets of up to 80 percent between relevant CME futures positions.
Options on Three-Month SOFR futures will be listed by and subject to the rules of CME. More information is available at cmegroup.com/sofr.
As the world's leading and most diverse 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. With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.
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, EBS, TriOptima, and Traiana are trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB, and Traiana, Inc., respectively. Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc. All other trademarks are the property of their respective owners.
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