CME Group to launch €STR options in Q1 2024 after futures success

The CME Group, a leading derivatives marketplace, is set to expand its product offerings with the introduction of options on the Euro Short-Term Rate (€STR) in the first quarter of 2024. This decision follows the significant growth of €STR futures throughout 2023, which saw open interest peak at 29,000 contracts and the Group capturing over 80% of the market share in this segment.

€STR futures have witnessed exponential growth over the past year, culminating in an average daily volume of 17,000 contracts in November. A record single-day trading volume was also achieved on November 10, with nearly 40,000 contracts exchanged. Mark Rogerson, a spokesperson for CME Group, highlighted that the forthcoming €STR options are designed to enhance risk management tools for traders amidst economic fluctuations.

CME’s suite of services currently spans a wide range of trading and clearing platforms including Globex for futures and options trading, BrokerTec for fixed income markets, EBS for forex trading, and ClearPort for clearing services. Furthermore, CME Clearing offers central clearing services to support the stability and transparency of derivative markets.

The introduction of €STR options will complement CME Group’s (NASDAQ:) comprehensive offerings and is expected to provide traders with additional flexibility and precision in managing exposure to European short-term interest rates. The new options will be available on the Globex platform, aligning with other established CME products.

The CME Group holds trademarks such as E-mini and SPY®, although it is noted that S&P Dow Jones Indices does not endorse its S&P-based future products. The launch of €STR options marks another strategic move by CME Group to cater to the evolving needs of global financial market participants.

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