CME to Launch Euro OI Futures
Posted by Colin Lambert. Last updated: August 8, 2022
CME Group has unveiled plans to launch European Overnight Index futures based on repofunds rate (RFR) benchmarks and the euro short-term rate in Q4 2022, pending regulatory review.
RFR futures will be cash-settled contracts based on RFR benchmarks, a measure of overnight funding costs. The benchmarks are derived from centrally cleared repo trades executed on CME’s BrokerTec, and MTS, a European electronic fixed income trading platform, which is part of the Euronext group. RFR benchmarks are administered by CME Group Benchmark Administration Limited.
“Our new European Overnight Index futures will support customers with liquid and capital efficient tools for hedging overnight money market and repo rates in European markets,” says Sean Tully, CME Group global head of rates and OTC products. “At a time of geopolitical uncertainty and large-scale transitions in monetary policy, we continue to provide market participants with new tools to meet their evolving risk management needs. In addition to our increasingly liquid SOFR futures that help customers manage interest rate exposure in the US, our new European futures will help our customers manage sovereign debt risk in Europe.”