CHICAGO, Jan. 15, 2016 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced the successful launch of Ultra 10-Year U.S. Treasury Note futures and options. The total volume through the first four trading days was 60,968 contracts with participation from more than 80 firms. Open interest reached 20,041 as of Jan. 14. Trading volume and open interest in this new contract has increased each day. Trading was active during all three global trading sessions, with the first trades taking place during the opening of the Asian session, shortly after 5 p.m. CT on Sunday, Jan. 10.
"We have seen unprecedented activity in these contracts," said Agha Mirza, CME Group Global Head of Interest Rate Products. "The Ultra 10-Year contract is the most successful interest rate product launched in the U.S. in the last decade. The second most successful product is the Ultra Treasury Bond futures contract, launched on the same day in 2010 and now averages more than 115,000 contracts per day in trading volume."
CME Group continues to see strong participation in the existing 10-Year Note Future (TY). Open interest in TY increased by 168,170 contracts in the first four trading days following the listing of the Ultra 10-Year.
"The Ultra 10-Year contract will provide us with a more efficient hedging instrument for the 10-year part of the Treasury curve," said Sam Priyadarshi, Head of Fixed Income Derivatives at The Vanguard Group. "It will be a good complement to the existing CBOT Treasury futures complex. The Ultra 10-Year contract bridges the gap between the 10-Year futures contract and the Long bond contract."
The Ultra 10-Year futures were launched in response to overwhelming client demand to create a product that precisely tracked the 10-year point on the Treasury curve, one of the most active fixed income benchmarks. This is highly complementary to existing CME Group futures products including TY, which has a deliverable basket that includes securities with as short as 6-and-a-half years to maturity, in comparison to the Ultra 10-Year, which is limited to those with at least nine years, five months remaining term to maturity. These contracts are listed by and subject to the rules of the CBOT.
For more information on CME Group's Ultra 10-Year, please visit www.cmegroup.com/ultra10.
As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through its CME Globex® electronic trading platform, its trading facilities in New York and Chicago, and through its London-based CME Europe derivatives exchange. CME Group also operates one of the world's leading central counterparty clearing providers through CME Clearing and CME Clearing Europe, which offer clearing and settlement services across asset classes for exchange-traded contracts and over-the-counter derivatives transactions. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk.
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SOURCE CME Group