Derivatives marketplace CME Group is to launch options on €STR futures from Q1 2024, adding to its suite of European rates derivatives.
CME launched 3-month €STR futures in October 2022 and since then its market has become the exchange with the largest open interest in listed €STR futures contracts. The launch of options will provide new means for managing risk in the European rates market, CME said, and will help bolster the liquidity for the futures market.
Mark Rogerson, EMEA head of interest rate products at CME Group, said, “With consistently strong volumes, open interest in our €STR futures has continued growing exponentially during 2023, now up to 28,000 contracts, with over 80% of market participants choosing CME Group as their home for European short term rate futures trading.”
“Adding options to our growing €STR futures contracts will provide clients with the first holistic €STR derivatives solution that allows them to navigate continued economic uncertainty and more accurately manage their risk in European interest rate markets,” Rogerson added
In November, CME Group €STR futures reached an average daily volume (ADV) of 17,000 contracts – with a single-day record of 39,836 contracts traded on 10 November.
© Markets Media Europe 2023
