CME Group Complements Eurodollar Bundle Futures and Options with New Offering

CME Group, one of the world’s largest multi-asset exchanges, has added a new series of contracts to an already diverse product suite, including complements to Eurodollar contracts, Eurodollar Packs and Bundles, according to a CME statement.

CME Group is responsible for a number of instruments, including derivatives, equities and Forex – recently the group reported lackluster July volumes, reiterating an industry-wide weakness in Forex. The new contracts however will ultimately complement existing Eurodollar contracts, Packs and Bundles. The Eurodollar Bundle has roots in 1994, which gives users added flexibility without having to rely on Eurodollar futures positions.

According to Sean Tully, Senior Managing Director of Interest Rates and OTC Products, in a recent statement on the offering, "Bundle futures and options provide market participants with access to a broad participant pool, deep Liquidity , operational simplicity, and price transparency via a single line item for longer term interest rates with same total notional size of an OTC contract. With margin levels and capital charges increasing for bilateral OTC products, options on Bundle Futures serve the needs of clients seeking a highly liquid, standardized, and cost-effective alternative."

Alternatively, CME Bundle affords users and market participants the option of utilizing shorter-term interest rate exposure in a consolidated manner – thereby using average rates to determine exposure.