SERFF’s up in STIR trading
STIR futures reached new levels of activity for One-Month SOFR (BBG: SER) and Fed Funds (FF) contracts, as well as the intercommodity spread (SERFF) that links the two and complements liquidity.
Key STIR stats include:
- One-Month SOFR: Record open interest (OI) of over 2M contracts (Oct. 1) and a new one-day volume record of 835K contracts (Oct. 31).
- Fed Funds: Record OI of over 3M contracts (Sept. 23) and three-month rolling average daily volume (ADV) now above 600K.
- SERFF: The SOFR vs. Fed Funds (SERFF) spread has continued to decline, with spreads now testing -12bps. Traders have been riding this wave of activity, with volume cresting over 500K for the first time ever to close out the month.
CME Group is where the world comes to manage STIR risk. Explore our resources below for more details on our platform.
Clear path for the Fed? Far from it
Though the Fed cut rates to close out October, comments from Chair Powell at the FOMC press conference have raised questions about the path ahead, boosting demand for the efficient risk transfer available via SR3 contracts.
Key stats for Three-Month SOFR contracts include:
- 300K increase in OI since the Fed decision.
- ADOI over 12.5M, the second highest level ever.
When rates move, liquidity is everything. Look to FedWatch for insights on upcoming rate decision days.
Treasury futures OI marches to non-roll high
Treasury futures OI reached a new non-roll high of 23.7M on October 29.
The average daily open interest (ADOI) for the month also nearly set an all-time record, showing strength across the curve with highs in 2-Yr, 10-Yr and Ultra T-Bond futures.
Explore our Treasury resources to help you efficiently manage risk for the rest of Q4.
New records (and research) in Credit futures
As ADOI hit another new monthly record and notional surpassed the $700M mark, the growing Credit futures ecosystem continues to deepen. Participants are increasingly taking advantage of Credit futures' capital efficiency, 70% margin offsets with U.S. Treasury futures, and derived block availability.
Notably, High Yield Credit futures reached new highs in October, highlighted by OI in HYB setting a new record on October 10, approaching 3K contracts, or nearly $300M notional.
Uncover the key factors shaping the Credit futures market in our latest research piece.
More in Interest Rates
Shifting rate outlook builds the case for TBAs
With volatility in the mortgage rate market, new levels of risk management took place in October for TBAs. Over 23.6K contracts traded on October 6, pushing OI to a new high of over 33.5K.
Coming soon: CME-FICC for customers
We have partnered with FICC to provide robust cross-margin savings that currently exceed $1B/day for house accounts. Pending regulatory review, we aim to expand this program to customers in the near future.
As the SEC clearing mandates approach, subscribe for updates on this program and view key resources to help you unlock these meaningful capital efficiencies.
250% YoY growth for 2-Yr options
After a banner September, activity in the 2-Yr options market continued at a torrid pace. ADV remained above 73K, while ADOI hit a new monthly record at just over 835K contracts.
Year-over-year, growth for both ADV and ADOI is nearly 250%, highlighting the dramatic expansion of this market in just the past 12 months.
Data as of November 1, 2025, unless otherwise specified.
View an archive of the Rates Recap online at cmegroup.com/ratesrecap.
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