LONDON, April 21, 2011 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, has
announced today that it will introduce cash-settled Sovereign Yield
Spread futures beginning May 22 for a
trade date of May 23. The six
countries represented in the initial launch phase include
France (OAT), Germany (Bund), Italy (BTP), Netherlands (DSL), United Kingdom (Treasury Gilts), and
United States (Treasury Notes).
These products are listed by and subject to the rules of CME, and
further diversifies CME Group’s Interest Rates product
portfolio.
To view the multimedia assets associated with this release,
please click: http://multivu.prnewswire.com/mnr/cmegroup/49742/
"We have had many discussions during the past several months
with asset managers, investment banks and hedge funds about their
U.S. and European government bond portfolio needs, and the message
to us was clear – design a contract that provides capital
efficiencies through one clearing facility that is cost effective
and meets the regulatory requirements," said Robin Ross, Managing Director, Interest Rate
Products for CME Group. "Our new Sovereign Yield Spread contracts
will be key risk management tools for anyone with exposure to U.S.
and European government bonds and will help facilitate the price
and risk transparency that global central banks desire."
Key features and benefits of the new contract include the
following:
- Sovereign Yield Spread futures wrap a sovereign yield spread
exposure into a single futures contract – with no need to execute
and manage individual legs in cash bond/repo markets or across
multiple futures exchanges.
- Sovereign Yield Spread futures make trading and monitoring of
sovereign yield spread exposures simpler, more cost-effective, and
more capital efficient than ever before.
- Sovereign Yield Spread futures are cash-settled and trade
exclusively on CME Globex.
View a video discussion of Sovereign Yield Spread futures here:
http://cmegroup.mediaroom.com/index.php?s=129 and read a new
research paper from CME Group here:
http://cmegroup.mediaroom.com/index.php?s=114
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 for exchange-traded
contracts, as well as for over-the-counter derivatives transactions
through CME ClearPort®. These products and services ensure that
businesses everywhere can substantially mitigate counterparty
credit risk in both listed and over-the-counter derivatives
markets.
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. All other trademarks are the property of their
respective owners.
CME-G
SOURCE CME Group