CME Group is set to launch options on Euro short-term rate (€STR) futures on 20 May 2024, which will be listed and subject to the rules of CME.
The derivatives marketplace initially launched the first €STR futures on 31 October 2022, as a complement to SOFR futures.
Order book depth was recently increased by CME Group by 79%, alongside reducing bid-ask spreads by 31% and facilitating the final settlement of the €STR market’s largest ever futures expiration totalling over 14,000 contracts last month.
“Our new €STR options will help clients more precisely manage their risk as expectations around European interest rate decisions continue to shift,” said Mark Rogerson, EMEA head of interest rate products at CME Group.
“This launch is the next step in the development of our robust €STR marketplace and builds on the growing liquidity and participation in our €STR futures.”
Last month, CME Group revealed plans to expand its interest rate complex with the launch of US corporate bond index futures in summer 2024, subject to regulatory review.
The new futures contracts will be based on the Bloomberg US corporate index and the Bloomberg US high yield very liquid index.