CME Group to Launch Mortgage Rate Futures in January 2025
CME Group announced the launch of Mortgage Rate futures in January 2025, pending regulatory review.
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Rhea-AI Summary
CME Group announced the launch of Mortgage Rate futures in January 2025, pending regulatory review. These cash-settled contracts will be based on the 30-Year Fixed Rate Conforming Optimal Blue Mortgage Market Index (OBMMI), tracking real-time rate lock data from over one-third of U.S. residential mortgage originations. The contracts will trade on CME Globex, be cleared by CME Clearing, and offer margin offsets against U.S. Treasury futures. The new product aims to provide market participants with a tool for managing risk across mortgage pipelines, servicing rights, and securities.
Positive
- Introduction of new financial product expanding CME's interest rate complex
- Integration with existing CME clearing infrastructure providing $20 billion in daily margin efficiencies
- Partnership with Optimal Blue covering 35% of mortgage locks market share
Negative
- None.
Details
News Market Reaction – CME
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- First contracts based on an Optimal Blue Mortgage Market Index
"For the first time ever, market participants will have a precise and highly-efficient tool for managing risk across mortgage pipelines, servicing rights and securities," said Agha Mirza, CME Group Global Head of Rates and OTC Products. "As the fixed income market continues to evolve, our new Mortgage Rate futures will enable clients to trade the primary-secondary mortgage spread and gain unrivaled margin offsets with our
"Optimal Blue is the authority on primary market mortgage pricing, with roughly
Mortgage Rate futures are cash-settled contracts that provide direct exposure to the latest primary mortgage rate available to borrowers. The contracts are the first-ever to be based on the 30-Year Fixed Rate Conforming Optimal Blue Mortgage Market Index (OBMMI), which is designed for IOSCO compliance and tracks real-time rate lock data from more than one-third of
Available to trade on CME Globex, Mortgage Rate futures will be listed with, and subject to, the rules of CBOT and cleared by CME Clearing. In addition to margin offsets against
For more information, please visit www.cmegroup.com/mortgage-futures.
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
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View original content:https://www.prnewswire.com/news-releases/cme-group-to-launch-mortgage-rate-futures-in-january-2025-302309711.html
SOURCE CME Group
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