CME Group to Launch Eurodollar Bundle Futures and Options

Contracts expand access and trading capability to CME Eurodollars with more capital savings and flexibility

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Aug 12, 2014, 09:00 ET

CHICAGO, Aug.12, 2014 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced expanded access to its CME Eurodollar liquidity pool by offering Bundle futures and options on Bundle futures. Contracts will be available starting September 22, 2014, pending CFTC review.

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The new contracts will complement the existing suite of Eurodollar contracts and Eurodollar Packs and Bundles. Introduced in 1994, the Eurodollar Bundle enables the simultaneous sale or purchase of one each of a series of consecutive Eurodollar contracts, leaving the user with a strip of individual Eurodollar futures positions. The new Bundle futures provide the same economic exposure, through a single line item instead of a strip of contracts. Bundle futures and options will be available through the CME Globex electronic trading platform, open outcry, and block trading, and will be available in 2-year, 3-year and 5-year tenors.

"Bundle futures and options provide market participants with access to a broad participant pool, deep liquidity, operational simplicity, and price transparency via a single line item for longer term interest rates with same total notional size of an OTC contract." said Sean Tully, Senior Managing Director of Interest Rates and OTC Products. "With margin levels and capital charges increasing for bilateral OTC products, options on Bundle Futures serve the needs of clients seeking a highly liquid, standardized, and cost-effective alternative."

CME Bundle futures will allow market participants to trade multiple years of short-term interest rate risk exposure at a single price, with a single instrument, with prices quoted in IMM index or '100 minus average rate' terms familiar to users of Eurodollar futures. Bundle futures and options will be listed on and subject to the rules and regulations of the Chicago Mercantile Exchange.

For more information, please visit: www.cmegroup.com/bundlefutures.

As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through its CME Globex^® electronic trading platform and its trading facilities in New York and Chicago. CME Group also operates CME Clearing, one of the world's leading central counterparty clearing providers, which offers clearing and settlement services across asset classes for exchange-traded contracts and over-the-counter derivatives transactions. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk. CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Globex and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are registered trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. KCBOT, KCBT and Kansas City Board of Trade are trademarks of The Board of Trade of Kansas City, Missouri, Inc. All other trademarks are the property of their respective owners. Further information about CME Group (CME) and its products can be found at www.cmegroup.com.