CME Group to Launch U.S. Corporate Bond Index Futures in Summer 2024

CHICAGO, Feb. 6, 2024 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that its interest rate complex will expand in summer 2024 with the launch of U.S. Corporate Bond Index futures, pending regulatory review.

The new futures contracts will be based on the Bloomberg U.S. Corporate Index, which measures the performance of investment grade corporate bonds, and the Bloomberg U.S. High Yield Very Liquid Index, which is designed to measure a liquid, diversified component of the high yield corporate bond market.

"As corporate debt issuance continues to increase across sectors, market participants are looking for tools to help them navigate growing credit exposure," said Agha Mirza, CME Group Global Head of Rates and OTC Products. "Our new U.S. Corporate Bond Index futures will bring clients the speed and precision they need to manage risk and pursue opportunities in the market, while gaining capital efficiencies through portfolio margining." 

"Bloomberg Indices is proud to be at the forefront of advancing the evolution of credit markets and we're excited to be working with CME Group to bring this new offering to market," said Umesh Gajria, Global Head of Index Linked Products, Bloomberg Index Services Limited. "The launch of listed futures on the Bloomberg U.S. Corporate Bond Indices is intended to provide investors with the ability to more accurately and efficiently gain exposure to the corporate bond market and hedge their credit risk."

Available to trade on CME Globex and eligible for submission to clearing via CME ClearPort, U.S. Corporate Bond Index futures will be listed with, and subject to, the rules of a Designated Contract Market at CME Group. These contracts will also receive automatic margin offsets against existing CME Group Interest Rate and Equity Index futures upon launch.

For more information, please visit www.cmegroup.com/credit.

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 Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index and the S&P 500 Dividend Points Index (Annual) are products of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These indices and trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the Indices are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners.

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SOURCE CME Group