CME group to launch 20-year US Treasury bond futures on March 7
CHICAGO, January 10, 2022 / PRNewswire / – CME Group, the world’s leading and most diversified derivatives market, today announced that it will expand its benchmark U.S. Treasury futures and options offering with the addition of bond futures contracts from the 20-year US Treasury on March 7, awaiting regulatory review.
The new 20-year US Treasury bond futures will allow delivery of original 20-year US Treasury Bonds with residual terms to maturity on delivery of at least 19 years 2 months and no more than 20 years.
Complementing CME Group’s existing lineup of highly liquid US Treasury futures and options, which grew over 15% year-on-year in 2021 to a record daily volume of $ 4.5 million, 20-year US Treasury bond futures will provide greater efficiency and precision in managing 20-year exposure to the US Treasury curve.
“The introduction of a 20-year US Treasury bond futures contract directly addresses the market’s need for a hedging tool at a time when managing US Treasury market risk is more important than ever. “, said Agha Mirza, CME Group Global Head of Rates and OTC Products. “Since the US Treasury began issuing 20-year bonds in May 2020, the total emission has been exceeded 450 billion dollars, creating customer demand for a new product that establishes 20-year return exposure. As a result, the design of this new contract represents important feedback from a wide range of clients and the entire fixed income trading community. ”
The 20-year US Treasury bond futures will receive automatic margin offsets against existing interest rate futures at launch and will be listed with and subject to CBOT rules. In addition, these contracts will become eligible for a portfolio margin against other interest rate swaps and futures contracts shortly after their inception.
For more information on this product, please see: www.cmegroup.com/20y.
As the world’s leading and most diverse derivatives market, CME Group (www.cmegroup.com) enables clients to trade futures, options, liquidity and over-the-counter markets, optimize portfolios and analyze data, thus enabling market participants around the world to effectively manage risk and seize opportunities. The CME group exchanges offer the widest range of global benchmark products in all major asset classes based on interest rate, stock market indices, exchange, energy, agricultural production and metals. The company offers futures and options on futures contracts through the CME Globex®, rate trading via BrokerTec and currency trading on the EBS platform. In addition, it operates one of the world’s leading providers of central counterparty clearing, CME Clearing.
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SOURCE CME Group