CME Group has partnered with BNY Mellon, a global leader in investment management and investment services, to provide investors with important new interest rate hedging tools that leverage BNY Mellon's strengths as a U.S. Tri-Party Repo agent and custodian and CME Group's leadership as a derivatives marketplace.
BNY Mellon's role in the collaboration will be to prepare and provide daily U.S. Tri-Party Repo Indices that reflect overnight interest rates on Tri-Party Repo transactions collateralized by U.S. Treasuries, Agency Mortgage Backed Securities, and U.S. Agency Debt.
CME Group plans to launch* a futures product based on the BNY Mellon Treasury Tri-Party Repo Index that will allow investors to hedge risk on short-term collateralized loans and other nearly risk-free interest rate exposures.
*Pending regulatory review
BNY Mellon and BNY Mellon Treasury Tri-Party Repo Index are service marks of The Bank of New York Mellon and have been licensed for use by Chicago Mercantile Exchange Inc. (“CME”) for use with certain CME products, including BNY Mellon Treasury Tri-Party Repo Index futures. BNY Mellon provides no advice nor recommendations regarding products based on any index licensed by BNY Mellon, including the CME products, and none of the CME products are sponsored, endorsed, sold or promoted by BNY Mellon, or its respective affiliates, or third party licensors, and BNY Mellon makes no representation, warranty, or condition regarding the advisability of buying, selling, or holding units in the CME products and does not accept any responsibility or liability in relation to their issue, operation and trading.
BNY Mellon, has three different indices that reflect the daily average of interest rates negotiated for repurchase transactions: the Treasury Tri-Party Repo Index, MBS Tri-Party Repo Index, and Agency Tri-Party Repo Index.
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