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).

Actions that deserve a look

Some top-ranked stocks in the financial sector are OTC Markets Group Inc. (OTCM Free report), Nasdaq (NDAQ Free report) and Virtu Financial, Inc. (VIRT Free Report), each wearing a Zacks # 2 (Purchase) rank. You can see the full list of Zacks # 1 Rank (Strong Buy) current stocks here.

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%.

The Nasdaq has beaten net income estimates in each of the past four quarters, with an average income beat of 8.30%.

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

Bitcoin, like the internet itself, could change everything

Blockchain and cryptocurrency have sparked one of the most exciting talking points in a generation. Some call it the “Internet of Money” and predict that it could change the way money works forever. If this is true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree that we are still in the early stages of this technology and as it develops it will create several investment opportunities.

Zacks just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and other cryptocurrencies with much less volatility than buying them directly.

See 3 Crypto Related Actions Now >>

About Mildred B.

Check Also

European stocks open at the close, data, earnings and market movements

European markets were slightly higher on Monday as investors braced for a busy week in …