In the relatively short time in which they have been made available, MAC Swap futures have been broadly embraced by financial institutions as an innovative new method of creating risk exposures that parallel that of OTC IRS instruments. MAC Swap futures offer significant capital efficiencies to the extent that they are eligible for cross-margining offsets vs. other CME Group interest rate products; and, offer reduced margin requirements relative to cleared IRS instruments.
But it is their functionality and application that is paramount to their success. This article discusses how combinations of MAC Swap futures may be deployed effectively to create forward-starting swap exposures.
CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.