UNITED STATES: CME Group to Launch SOFR Options

Friday September 6 2019

On September 4^th 2019, the Chicago Mercantile Exchange (CME Group), announced that it will launch options on Three-Month Secured Overnight Financing Rate (SOFR) futures starting on Jan. 6, 2020, pending regulatory review.

Since their launch in May 2018, more than 195 global market participants have traded over 6.3 million SOFR futures contracts at CME Group. A record 120 large open interest holders held open positions in SOFR futures as of Aug. 27, 2019. Additionally, open interest surpassed a record 283,000 contracts on Aug. 30, 2019.

SOFR futures trade alongside highly liquid Eurodollar, Fed Fund and Treasury futures to offer customers enhanced spread trading capabilities through CME Group’s electronic trading platform, CME Globex, and capital efficiencies via margin offsets of up to 80 percent between relevant CME futures positions.

Options on Three-Month SOFR futures will be listed by and subject to the rules of CME.

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