|
A benchmark for investors globally, CME Eurodollar futures provide a valuable, cost-effective tool for hedging interest rate fluctuations on Eurodollars, which are U.S. dollars deposited in commercial banks outside the United States. Together, CME Eurodollar futures and options on futures lead the industry with open interest over 40 million and average daily volume of 3.0 million. Plus, with over 85% of CME Eurodollar futures trading electronically on the CME Globex platform, portfolio managers can hedge short term interest rate risk with a variety of trading strategies, like Butterflies, Packs and Bundles, around the clock from around the world. Recent Enhancements
Implied Spread and Maximum Order Size Functionality Enhancements (PDF) Block Trades
A Block Trade is a strictly regulated privately negotiated futures transaction executed apart from the public auction market, either on or off the Exchange trading floor. Up-to-date Block Trades
Block Trade Overview
Block Trading FAQ (PDF) Exchange for Physical (EFP) / Exchange Basis Facility (EBF)
An EBF for interest rate products is the same as an Exchange for Physical transaction. Both parties involved in an EBF agree to simultaneously exchange “cash for futures” and then report the details of the transaction to CME Clearing. EFP/EBF Overview Substitutions
Substitutions, or “Subs”, allow market participants to streamline the transaction process, consolidate OTC and futures positions for administration and clearing, and work with a single counterparty - CME Clearing. Subs Overview
Substitutions of Futures for Forwards (PDF) Benefits of trading CME Eurodollar futures:
- Flexibility - CME continues to develop new, innovative products that provide even more flexibility for CME Eurodollar futures and options including: CME Eurodollar 5-Year E-mini Bundles, CME Eurodollar Bundles, CME Eurodollar Packs,Serial CME Eurodollars, Weekly Mid-Curve Options, Treasury Matched Mid-Curve Options, and CME Subs
- Concentrated Liquidity - Consistently tight bid/ask spreads and lower transaction costs for our clients
- Price Transparency - Open, fair and anonymous trading environment with market prices universally available in real-time
- Variety of Trading opportunities - Including outright long or short positions, spreading against other instruments, hedging and arbitrage strategies
- Ease of Trading - Electronic trading on CME Globex provides reduced connectivity costs, increased accessibility, and fast, efficient trading
|
