CME Group, which claims to be one of the world’s leading derivatives marketplaces, announced that open interest in its deeply liquid U.S. Treasury futures “set a new record of 21,428,757 contracts on November 24.”
This year, the notional value of open interest “in CME Group U.S. Treasury futures grew to $2.57 trillion, an increase of 50% year-over-year, as the average daily volume (ADV) reached 5.5 million contracts, the highest annual level ever.”
Agha Mirza, CME Group Global Head of Rates and OTC Products, said:
“Throughout 2023, we have seen record volume and open interest in our U.S. Treasury futures, which offer market participants the most efficient and liquid products to hedge risk across the yield curve. We are particularly pleased with the breadth of our market’s liquidity profile and overall participation, as measured by large open interest holders in the CFTC’s commitment of traders report. Amid our third consecutive year of record ADV, this indicates the market will remain deeply liquid, while it continues to enable record risk transfer.”
CME Group claims that it “delivers the market’s leading electronic, central limit order book for every tenor of U.S. Treasury futures, which trade side-by-side on the CME Globex platform with BrokerTec cash securities.”
In addition, clients benefit from “the flexibility of privately negotiated transactions in the form of blocks, exchange for risk (EFR) and exchange of futures for physical (EFP) agreements. Clients using these tools to manage risk include sovereigns, banks, asset managers, hedge funds, principal trading firms and other institutions.”
U.S. Treasury futures receive margin offsets “against existing CME Group Interest Rate products, and are listed with, and subject to, the rules of CBOT.”
These contracts are also eligible “for portfolio margining against other cleared interest rate swaps and futures.”
As the world’s derivatives marketplace, CME Group says it “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.”