-
About
|
About CME Group Information and Resources - Careers|
-
Investor Relations
|
Investor Relations Financial ReportsShareholder Information - Media Room|
-
Feedback
|
- Global
- Electronic Trading |
-
Clearing
|
Clearing Clearing ServicesFinancial and Collateral ManagementClearing OperationsBusiness Continuity Mgt/DR -
CME ClearPort
|
CME ClearPort - OTC Derivatives Clearing CME ClearPort - Market Data Services |
- Market Regulation |
- Education |
- Resources
"Exchange Basis Facility" (EBF) transactions involve simultaneously combining a position in futures with an opposite position in the cash market. EBFs are also sometimes referred to as "cash for futures transactions," "Exchange For Physical" or "versus cash transactions." A seller of CME Swap futures must own (or be "long") an equivalent cash commodity while a purchaser of futures must be a seller (or be "short") an equivalent commodity for an EBF to occur. There are a number of cash interest rate instruments that can be used in EBFs against CME 2-year, 5-year and 10-year Swap futures, such as
- U.S. Treasury and Agency issues
- Interest rate swaps
- Collateralized Mortgage Obligations (CMOs)
- Investment Grade Debt.
When two parties are interested in executing a CME Swap futures transaction against a specific cash instrument, an EBF may be the route to take.
