CME Group set to launch €STR options next quarter

Launch follows the addition of overnight index futures based on the euro short-term rate at CME Group in October last year.

CME Group has announced that it will launch options on €STR futures in Q1 2024, which will be listed by and subject to the rules of CME.

In October last year, CME Group announced the first day of trading of a new set of overnight index futures based on the euro short-term rate.

The contracts allow for a more efficient means of hedging European money market rates, enabling price discovery across the forward curve, IBOR/OIS basis trading and managing cross-country basis spreads and price differentials between EU and US interest rates,

This month, CME Group €STR futures totalled an average daily volume (ADV) of 17,000 contracts, having achieved a single-day record of 39,836 contracts traded on 10 November.

“With consistently strong volumes, open interest in our €STR futures has continued growing exponentially during 2023, now up to 28,000 contracts, with over 80% of market participants choosing CME Group as their home for European Short Term Rate futures trading,” said Mark Rogerson, EMEA head of interest rate products at CME Group.

“Adding options to our growing €STR futures contracts will provide clients with the first holistic €STR derivatives solution that allows them to navigate continued economic uncertainty and more accurately manage their risk in European interest rate markets.”