Launching Monday, November 24, 2008

Like their futures counterparts, 3-Month Overnight Index Swap (OIS) options on futures track the overnight effective Federal Funds rate, a major benchmark of the U.S. short-term interest rate market, and complement the 30-Day Fed Funds and Eurodollar contracts.

Whereas the Fed Funds contract reflects the average of the Fed Funds rate over the course of a calendar month, the 3-Month OIS contract reflects the compounded Fed Funds rate over a 3-month period that is identical to the interbank deposit tenor for the corresponding 3-Month Eurodollar futures contract.

These contracts: 

• Expand the array of sophisticated trading strategies that can be constructed to hedge exposure to the overnight effective Fed Funds rate or to trade the 3-month LIBOR vs. overnight Fed Funds rate spread. 
• Offer a more direct and efficient way to hedge exposure to overnight financing costs 
• Enable you to take longer-term strategic views on FOMC policy
• Offer central counterparty clearing benefits provided by CME Clearing The options will trade side-by-side on the floor and electronically on the CME Globex platform.

 
Contract Information
View Contract Specifications 
View Information on the 3-Month OIS Futures contract

Resources 
View the 3-Month OIS fact card 
View the 3-Month OIS Reference Guide

For More Information 
For more information, contact the CME Group Interest Rate Products Team at 866-501-3646 or interestrates@cmegroup.com.