Sept. 18, 2012
, the world's leading and most diverse derivatives marketplace, announced it will launch deliverable Interest Rate Swap Futures contracts
November 13, 2012
. This innovative new product complements CME Group's leading interest rate futures and options business, and its cleared over-the-counter interest rate swap solution. The contracts will be listed on, and subject to, the rules and regulations of CBOT and will be submitted to and reviewed by the CFTC.
Interest Rate Swap Futures
were created to meet strong demand from financial market participants including banks, hedge funds, asset managers and insurers. Citi, Credit Suisse, Goldman Sachs, and Morgan Stanley are among the firms who are planning to serve as market makers for the product, enabling market participants to access deep and liquid markets.
"Deliverable Swap Futures benefit clients by providing a unique new way to access interest rate swap exposure, further strengthening our position as the leading OTC clearing solution for U.S. customers," said
, Managing Director of
Interest Rate Products
at CME Group. "Our customers will now have a complementary standardized product that provides the advantages offered by futures contracts including pricing transparency, the automatic netting of positions, and margin savings achieved through cross margining versus all other futures and options cleared through CME Clearing."
"We are pleased to be able to work with CME Group as a market maker for Deliverable Swap Futures," said
, Head of North American Rates Trading at Citi. "This innovative product allows Citi and our clients to capture the benefits of futures trading while maintaining the flexibility to take physical delivery of a CME cleared interest rate swap."
"Credit Suisse is committed to staying on the leading edge of financial innovation and providing our clients with new ways to transfer risk," said
, Head of Rates Americas at Credit Suisse. "We are pleased to partner with CME as the Interest Rate Swaps market goes through this period of change"
"Swap Futures fill an important gap in the rates market, as they'll allow clients to access swap exposure while providing cross-margining with the efficiencies of Futures products" said
, Head of Global Interest Rate Products at Morgan Stanley. "We are excited by the prospect of providing liquidity in this unique new product, and to continue to serve our clients as a leading clearing member for CME futures and cleared swaps."
This product has the same economic exposure as an interest rate swap, the margin and liquidity benefits of a futures contract, and at expiration all open positions will deliver into a CME Cleared Interest Rate Swap. The product will be a standardized future, trading both electronically on CME Globex and via open outcry, and will be eligible for privately negotiated transactions.