CME Group Expands Credit Products with High Yield Duration-Hedged Futures

Rhea-AI Summary

CME Group has launched High Yield Duration-Hedged Credit futures, its fourth contract based on Bloomberg corporate bond indexes. The new product aims to provide more precise credit exposure management amid growing demand for fixed income hedging tools.

Key highlights include:

• Credit futures volume has exceeded 275,000 contracts since June
• Open interest reached a record 3,200 contracts in March, representing $320 million in notional value
• The futures enable duration risk management through intercommodity spread with U.S. Treasury futures
• Clients can receive automatic margin offsets against Interest Rate and Equity Index futures, part of $60 billion in daily capital efficiencies across asset classes

The new futures are available for trading on CME Globex and clearing via CME ClearPort, subject to CBOT rules.

Positive

• Record open interest of 3,200 contracts ($320M notional value)
• Strong trading volume exceeding 275,000 contracts since June
• $60 billion in daily capital efficiencies through margin offsets
• Product expansion into high-yield credit futures enhances market offering

Negative

• None.

News Market Reaction

+1.89%

1 alert

+1.89% News Effect

On the day this news was published, CME gained 1.89%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

• Volume across credit futures surpasses 275,000 contracts

CHICAGO, March 17, 2025 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced the first day of trading in High Yield Duration-Hedged Credit futures, its fourth contract based on Bloomberg corporate bond indexes. The new product enables investors to manage credit exposure with greater precision as demand for fixed income hedging tools continues to grow.     

"In an environment driven by uncertainty, our high yield and investment grade credit futures provide highly efficient risk management solutions for corporate bonds, interest rates, equities and other assets," said Agha Mirza, CME Group Global Head of Rates and OTC Products. "Today's launch of High Yield Duration-Hedged Credit futures is well-timed given our latest milestone of 275,000 credit futures contracts traded since last June."

CME Group credit futures are the first futures contracts to help market participants manage duration risk through an intercommodity spread with U.S. Treasury futures. Clients can receive automatic margin offsets against CME Group's Interest Rate and Equity Index futures, as part of its $60 billion in unparalleled capital efficiencies delivered daily across asset classes.

In March, open interest in CME Group credit futures reached a record 3,200 contracts, representing $320 million in notional value.

Available to trade on CME Globex and eligible for submission to clearing via CME ClearPort, CME Group credit futures are listed with, and subject to, the rules of CBOT.

For more information, please visit www.cmegroup.com/credit.

As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. 

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners.

 CME-G

 

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SOURCE CME Group

FAQ

What is the trading volume of CME Group's credit futures since June?

CME Group's credit futures have surpassed 275,000 contracts traded since June.

What is the notional value of CME's credit futures open interest in March 2025?

Open interest reached 3,200 contracts in March, representing $320 million in notional value.

How do CME's High Yield Duration-Hedged Credit futures manage risk?

They manage duration risk through intercommodity spread with U.S. Treasury futures and offer margin offsets against Interest Rate and Equity Index futures.

What platforms are CME's new High Yield Duration-Hedged Credit futures available on?

The futures are available to trade on CME Globex and eligible for clearing via CME ClearPort.