CME Group has revealed that its new credit futures are scheduled to begin trading on 17 June 2024, pending regulatory review.
Launching alongside the company’s US Treasury complex, CME Group’s credit futures are designed to allow investors to gain exposure to and manage credit component risk through futures on Bloomberg’s duration-hedged index. The contracts will be based on the Bloomberg US Corporate Index, which measures the performance of investment grade corporate bonds, and the Bloomberg US High Yield Very Liquid Index, which is designed to measure a liquid, diversified component of the high yield corporate bond market.
Agha Mirza, CME group global head of rates and OTC products, said, “Since announcing our expansion into credit futures earlier this year, we have received very positive feedback from market participants with exposure to credit, interest rates, equities and other assets. Designed for efficiency, our credit futures will support spread trading with automatic margin offsets against our Interest Rate and Equity Index futures.”
Umesh Gajria, global head of index linked products, Bloomberg Index Services, said, “CME Group’s upcoming launch of futures based on the Bloomberg US Corporate Bond Indices supports the continued advancement of fixed income markets. These credit futures can provide a capital efficient vehicle for investors to manage their exposures and risks to their bond portfolios through the derivatives market.”
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