On Sunday evening October 8th (for business day Monday October 9th), trading will begin on CME Globex^® in E-mini Eurodollar futures and E-Mini Eurodollar 5-Year Bundle Futures. 

The E-Mini Eurodollar future itself is straightforward:  a Globex-only Eurodollar future, listed only on the quarterly months (no serials), with a contract size one-tenth that of the standard future.  Firms with positions in the E-Mini Eurodollar future may convert these contracts at any time into positions in the corresponding full-sized future, at a 10 to 1 ratio.

The Eurodollar 5-Year E-Mini Bundle Future, however, is something new:  a future, the underlying of which is a five-year bundle of the E-mini Eurodollar futures.  To understand this, compare the 5-Year E-Mini Bundle future, to a regular 5-Year Bundle.  If you trade a 5-Year Bundle on CME Globex, this immediately decomposes into the underlying futures legs, and you receive a strip of 20 (five years times four contracts per year) individual full-size Eurodollar futures transactions.  But if you trade an E-Mini 5-Year Bundle future, you get a single transaction -- the bundle future itself.  The resulting position, if not liquidated, remains as a single futures transaction until maturity.

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