CHICAGO, June 27, 2019 /PRNewswire/ -- Cboe Global
Markets, Inc. (Cboe: CBOE), one of the world's largest exchange
holding companies, today announced plans to launch futures on the
AMERIBOR® (American Interbank Offered Rate) interest rate benchmark
on Cboe Futures ExchangeSM (CFE), subject to regulatory
review. The new futures are expected to launch on trade date
August 16, in honor of the
42nd anniversary of the launch of Treasury bond
futures.
AMERIBOR futures will be cash-settled and are designed to
reflect the market expectations of either compounded daily
annualized AMERIBOR interest or average simple daily annualized
AMERIBOR interest. CFE plans to initially offer two AMERIBOR
futures products: three-month and seven-day contracts, followed by
other short-term products.
AMERIBOR, disseminated by the American Financial Exchange, LLC
(AFX™), is a transparent, transactions-based interest
rate benchmark that represents market based borrowing costs. The
AMERIBOR rate is calculated daily as the transaction
volume-weighted average interest rate of the AMERIBOR overnight
unsecured loans on AFX. AMERIBOR is not based on expert opinion,
judgment, estimates or submissions.
"We are pleased to expand upon our existing collaboration with
AFX to launch AMERIBOR futures," said Ed
Tilly, Chairman, President and CEO of Cboe. "We expect these
futures to help banks, proprietary traders and other market
participants achieve greater precision and accuracy when managing
risk or executing interest rate trading strategies."
U.S. banks and other financial institutions may use AMERIBOR
futures in connection with hedging variable overnight funding costs
and interest rate risk. Proprietary traders may use AMERIBOR
futures as a vehicle for implementing trading strategies related to
interest rates and in connection with hedging interest rate
risk.
"We are delighted to launch AMERIBOR futures at this time," said
Dr. Richard Sandor, Chairman and CEO
of AFX. "As our volume and membership continues to gain momentum
and reaches critical mass, the launch of AMERIBOR futures is the
natural next step that will provide market participants with the
tools they need to manage their risk and seek trading
opportunities. The inherently straightforward and transparent
design of the AMERIBOR interest rate benchmark allows for ease of
execution and spreading strategies between the cash and the futures
markets."
AFX has 150 participants across the U.S., including banks,
broker-dealers, private equity firms, business development
corporations, hedge funds, futures commission merchants, insurance
companies, asset managers and finance companies. AFX has more than
1,000 correspondent bank participants that are able to conduct loan
transactions through their respective AFX Member correspondent
banks. AFX has seen continued volume growth since its inception in
2015. A record $2.52 billion was traded across all
AFX products on April 15, 2019,
surpassing the previous record
of $2.35 billion traded
on March 28, 2019.
To learn more about AMERIBOR futures, including product
specifications, go to cfe.cboe.com/ameribor-futures. For more
information on AMERIBOR, visit www.ameribor.net.
About Cboe Global Markets, Inc.
Cboe Global Markets, Inc. (Cboe: CBOE) is one of the world's
largest exchange holding companies, offering cutting-edge trading
and investment solutions to investors around the world. The company
is committed to relentless innovation, connecting global markets
with world-class technology, and providing seamless solutions that
enhance the customer experience.
Cboe offers trading across a diverse range of products in
multiple asset classes and geographies, including options, futures,
U.S. and European equities, exchange-traded products (ETPs), global
foreign exchange (FX) and multi-asset volatility products based on
the Cboe Volatility Index (VIX Index), the world's barometer for
equity market volatility.
Cboe's trading venues include the largest options exchange in
the U.S. and the largest stock exchange by value traded in
Europe. In addition, the company is one of the largest stock
exchange operators in the U.S. and a leading market globally for
ETP trading.
The company is headquartered in Chicago with offices in Kansas City, New
York, London, San Francisco, Singapore, Hong
Kong and Quito,
Ecuador. For more information, visit www.cboe.com.
About American Financial Exchange
The American Financial Exchange (AFX) is rule-based electronic
exchange that provides a transparent, centralized marketplace to
allow for American banks and other financial institutions to meet
their funding needs. AFX seeks to offer a suite of innovative
products that improve transparency and efficiency in the current
interbank loans marketplace. AFX also facilitates the
determination of a market-based interest rate benchmark – the
American Interbank Offering Rate (AMERIBOR). AFX has self-certified
that AMERIBOR meets the Principles for Financial Benchmarks issued
by International Organization of Securities Commissions (IOSCO) and
is in the process of completing an independent third party audit of
AMERIBOR's conformance with IOSCO benchmark standards.
For more information about AFX, visit www.theafex.com.
AFX Media
Contact
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Cboe Media
Contacts
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Analyst
Contact
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Laura
LaBarbera
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Suzanne
Cosgrove
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Angela
Tu
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Debbie
Koopman
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+1-312-554-4904
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+1-312-786-7123
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+1-646-856-8734
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+1-312-786-7136
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llabarbera@theafex.com
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scosgrove@cboe.com
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atu@cboe.com
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dkoopman@cboe.com
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CBOE-C
CBOE-EF
Cboe®, Cboe Volatility Index®, and VIX® are registered
trademarks and Cboe Global MarketsSM and Cboe Futures
ExchangeSM are service marks of Cboe Exchange,
Inc. AMERIBOR® is a registered trademark of Environmental
Financial Products, LLC. All other trademarks and service marks are
the property of their respective owners.
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SOURCE Cboe Global Markets, Inc.