CME Group (CME) to launch BSBY-based interest rate futures – May 25, 2021

CME Group Inc. (CME Free Report) will unveil cash-settled Bloomberg Short-Term Bank Yield Index (BSBY) interest rate futures, which will be available for trading in the third quarter of 2021. The Stock Exchange will also introduce over-the-counter (OTC) cleared BSBY swaps in the fourth quarter.

BSBY is a proprietary index, which can be used in addition to the SOFR (Guaranteed Overnight Funding Rate published by the Federal Reserve Bank of New York) in the loan market. It offers a range of credit-sensitive benchmarks to help banks manage the gap between their funding costs and the interest earned on loans.

These new launches will be in addition to current short-term interest rate futures as well as SOFR index futures products.

In addition, they will provide global market participants with a wide range of capital effective risk management tools that will help them manage their interest rate exposures.

CME Group remains focused on growth and customer acquisition by developing, innovating and increasing its core offerings, and increasing the participation of non-US customers. This goal is achieved by expanding its global sales team, cross-selling products, expanding existing benchmark products, launching products and services, and deepening open interest in the offerings of futures and options basis.

In line with its strategic initiatives, CME Group has undertaken various product launches. The company launched Used Cooking Oil Methyl Ester Futures (UCOME) to support the transition to a greener energy market for transportation fuels, Pork Cutout futures and options for strengthen its main agricultural references. In addition, it recently launched Micro WTI Futures to enhance its strong lineup of energy futures and options.

CME Group is focused on maximizing global futures and options growth, diversifying business and income, and delivering unmatched customer efficiency and operational excellence.

Shares of this world’s largest futures exchange in terms of trading volume and notional value traded rose 19.4% in the cumulative period of the year, outperforming the gain of 7.1% of the sector. In addition, the company’s policy of increasing its growth profile and capital position should push stocks up.

The action is currently ranked Zacks # 3 (Hold).

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Profits in the over-the-counter markets have beaten estimates in each of the past four quarters, with the average beat profit being 33.47%.

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Virtu Financial has beaten estimates in each of the past four quarters, with an average gain of 30.04%.

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