CME to list forward-starting swap

摘要

CME Group is looking to capitalise on increased investor interest for contracts that bridge the gap between over-the-counter swaps and exchange-traded futures, since Dodd-Frank reforms have begun to increase costs and operational inefficiencies in swaps trading. The firm will launch Eurodollar bundle futures and options beginning on September 22. The products mimic the mechanics of forward-starting swaps in the OTC space but are traded on the exchange and reference Eurodollar futures, which are considered a good proxy for rates moves. "With margin levels and capital charges increasing for bilateral OTC products, options on Bundle Futures serve the needs of clients seeking a highly liquid, standardised, and cost-effective alternative," said Sean Tully, senior managing director of interest rate and OTC products at the exchange.