Packs and Bundles

A pack is the simultaneous sale or purchase of a series of four consecutive STIR futures contracts. 

Packs offer the advantage of being transactable at a single price or value, eliminating the need to enter multiple orders for each contract and the possibility that orders may go unfilled.

A bundle is the simultaneous sale or purchase of multiple series of four consecutive STIR futures contracts. That is, while packs comprise one year of interest rate exposure (i.e. four consecutive quarterly contracts), bundles comprise multiple years of rate exposure (e.g. two-year bundle = eight quarterly contracts).

Bundles, like packs, offer the advantage of being transactable at a single price or value, eliminating the need to enter multiple orders for each contract and the possibility that orders may go unfilled.

Packs and bundles can help participants simplify hedging strategies. Instead of buying multiple securities – which exposes a participant to legging risk – a pack or bundle allows for the implementation of a hedging strategy with a single transaction.