01.11.2022

CME Adds 20-Year U.S. Treasury Bond Futures

CME Group, the world’s leading and most diverse derivatives marketplace, announced it will expand its benchmark U.S. Treasury futures and options offering with the addition of 20-Year U.S. Treasury Bond futures on March 7, pending regulatory review.

The new 20-Year U.S. Treasury Bond futures will allow for delivery of original issue 20-year U.S. Treasury bonds with remaining terms to maturity at delivery of at least 19 years 2 months and not more than 20 years.

Complementing CME Group’s existing suite of deeply liquid U.S. Treasury futures and options, which grew more than 15% year-over-year during 2021 to a record 4.5 million average daily volume, 20-Year U.S. Treasury Bond futures will offer greater efficiency and precision in managing exposure at the 20-year maturity point on the U.S. Treasury curve.

“The introduction of a futures contract on the U.S. Treasury’s 20-Year bond responds directly to market need for a hedging tool at a time when managing U.S. Treasury market risk is more important than ever,” said Agha Mirza, CME Group Global Head of Rates and OTC Products. “Since the U.S. Treasury began issuing 20-Year bonds in May 2020, total issuance has been over $450 billion, creating customer demand for a new product that establishes 20-year yield exposure. As a result, the design of this new contract represents extensive feedback from a wide set of clients and the broader fixed income trading community.”

20-Year U.S. Treasury Bond futures will receive automatic margin offsets against existing interest rate futures upon launch and will be listed with, and subject to, the rules of the CBOT. Additionally, these contracts will become eligible for portfolio margining against other cleared interest rate swaps and futures shortly after launch.

Source: CME Group

Related articles

  1. This year Webull began providing connectivity to Cboe’s U.S. equities markets.

  2. The exchange also had record equity futures and options volumes.

  3. The association supports the CFTC’s effort to establish new clearing mandates.

  4. 2021 marked the fourth consecutive year of record-setting trading activity.

  5. Outlook 2016: Alexander Lehmann, LSEG

    LCH SwapAgent registered over 10,000 trades in 2021, a five fold increase.