News Release

CME Group to Develop Derivatives on Broad Treasuries Repo Financing Rate

Wed Jul 26 2017

CHICAGO, July 26, 2017 /PRNewswire/ -- Following the Alternative Reference Rate Committee's (ARRC) recent recommendation that the broad Treasuries repo financing rate should serve as the reference rate in certain new U.S. dollar derivatives and other financial instruments, CME Group, the world's leading and most diverse derivatives marketplace, today announced that it will develop futures and options on the new benchmark.

Futures and options will launch, pending all regulatory reviews and approvals, after the Federal Reserve Bank of New York and the U.S. Treasury Office of Financial Research begin daily publication of the rate, expected in first half of 2018, and would be subject to the rules and regulations of the relevant exchanges at CME Group.

"CME Group commends the committee for its thoughtful and inclusive deliberation during this process," said Agha Mirza, Global Head of Interest Rate Products at CME Group. "We look forward to developing products on the broad Treasuries repo financing rate, which is based on transactions from deep and actively-traded markets."

In the next few months, CME Group will engage with customers in its product development efforts. CME Group has spent the past several years exploring products based on similar Treasury repo rates, which would be complementary to its Federal Fund futures and Eurodollar futures products.

CME Group serves as a non-voting member of the ARRC. For more information, please visit www.newyorkfed.org/arrc.

As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk.  Through its exchanges, CME Group offers the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals.  CME Group provides electronic trading globally on its CME Globex platform.  The company also offers clearing and settlement services across asset classes for exchange-traded and over-the-counter derivatives through its clearinghouses CME Clearing and CME Clearing Europe.  CME Group's products and services ensure that businesses around the world can effectively manage risk and achieve growth.

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex and E-mini are trademarks of Chicago Mercantile Exchange Inc.  CBOT, Chicago Board of Trade, KCBT and Kansas City 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.  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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SOURCE CME Group

Media, Alex Gorbokon, 312.930.3193 or Laurie Bischel, 312.648.8698, news@cmegroup.com, www.cmegroup.mediaroom.com, or Investors, John Peschier, 312.930.8491

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