Welcome to Eurodollar Futures

Looking for a cost-effective way to trade short-term U.S. interest rates? Consider Eurodollar futures, widely viewed as one of the world’s most important and liquid markets.

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What are Eurodollars?

U.S. dollars held at commercial banks outside the U.S. banking system.

What are Eurodollar futures?

  • Global benchmark, reflecting market expectations on U.S. interest rates
  • Fundamental building block of the financial market
  • Preferred tool of traders to express views on future interest rate moves

How Eurodollar futures are quoted

Eurodollar futures are quoted at 100 minus yield – so if the yield in 0.85%, the Eurodollar future contract is quoted at 99.15 (100.00 – 0.85).

Contract Unit

$2,500 x contract grade IMM index ($25 per basis point per annum)

Product Symbol

CME Globex: GE; CME ClearPort: ED; Clearing: ED

Contract Months

March (H), June (M), September (U), and December (Z),
nearest four “serial” months (excluding the March Quarterly cycle)

Trading Hours Around the Clock

Electronic: 5:00 pm - 4:00 pm, Sunday - Friday (Central Times)

Minimum Tick

Nearest expiring contract month: 1/4 of one basis point

All other contract months: 1/2 of one basis point

Dollar Value of One Tick

Nearest expiring contract month: $6.25

All other contract months: $12.50

Product Last Change Chart Globex Vol

Why Trade Eurodollar Futures?

Unsurpassed Liquidity
Take advantage of the world’s most actively traded futures contract, with unrivaled book depth & tight bid-ask spreads 

Target & Trade Where Your Risk Lies
With deep liquidity out five years plus, effectively target interest rate risks that matter to you

Flexible Execution
Access liquidity via the central limit order book, blocks and EFRPs

Global Barometer of Money Flows
Gain insight into global capital flows, credit demand & rate expectations 

Nearly 24-Hour Electronic Access
Act when global news & events unfold with nearly around-the-clock access

Compare Eurodollar Futures vs. Interest Rate Swaps

  • Deep, liquid markets with tight bid/ask spreads make futures easy, potentially less costly to trade
  • Futures’ capital efficiency lets you control a large notional value for a relatively small amount of capital
  • Enjoy lower margin requirements of standardized futures
  • Margin offsets with other CME Group Interest Rate contracts offer more savings
  • Central clearing helps you:
    • Mitigate counterparty credit risk
    • Reduce funding costs/requirements
    • Tap into significant capital & margin efficiencies 

Manage Market Event Risk with Eurodollar Futures

Eurodollar futures’ nearly 24-hour trading access becomes particularly valuable for managing volatility related to surprise market events. From the Sunday open to the Friday close, Eurodollar futures give you the liquidity and flexibility to act as global news and events unfold.

Trading Around Recent Major Market Events

Post U.S. Election
(November 9, 2016)

Post Dec FOMC Rate Hike Announcement
(December 15, 2016)
Post UK Referendum
(June 24, 2016)

11.5 million contracts
traded for the day, +345%

7.5 million contracts
traded, +191%
5.3 million contracts
traded for the day, +106%
6.1 million contracts
traded on CME Globex before U.S. hours, +963%
2.6 million contracts
traded on CME Globex before U.S. trading hours, +356%

3.5 million contracts
traded on CME Globex before U.S. trading hours, +508%

Non-U.S. hours defined as 17:00-6:59 CT. Volumes compared to 2016 average daily volume.

Key Economic Reports

FOMC (Federal Open Markets Committee)
Meets 8 times a year on U.S. monetary policy and the key interest rate; any change will impact the markets

Non-U.S Central Bank Monetary Policy
Outside of the U.S. Federal Reserve, seven other major central banks can impact markets with monetary policy:

European Central Bank (ECB)
Swiss National Bank (SNB)
Reserve Bank of New Zealand (RBNZ)
Reserve Bank of Australia (RBA)

Bank of England (BoE)
Bank of Canada (BoC)
Bank of Japan (BoJ)

CPI (Consumer Price Index)
Mid-month by Bureau of Labor Statistics (BLS); measures inflation or cost-of-living changes, tracking the average price of a basket of goods and services; key driver of Fed policy

U.S. unemployment statistics
1st Friday of month by the Bureau of Labor Statistics (BLS); gauges how many jobs the U.S. economy added /lost over last month; increase indicates economic growth, is a key indicator for Fed

Learn to Trade Eurodollar Futures

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