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Interest Rate Swap futures fill a vital need for exchange-traded derivative contracts that reference intermediate- and long-term swap rates. Covering the 5-Year, 7-Year, 10-Year, and 30-Year tenors, these contracts provide institutional investors with efficient and effective vehicles for hedging credit and interest rate exposure. Interest Rate Swap futures provide users with simple, transparent means to structure and manage a variety of credit spreads and yield curve trades. Interest Rate Swap futures provide price/yield characteristics comparable to those of a plain vanilla swap, but without the administrative costs. Moreover, the guarantee of CME Clearing mitigates credit risk by serving as the ultimate counterparty to all trades, making it comparable to the strongest credits in the over-the-counter (OTC) market
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