Libor s final days begin with push to shake up swaps market
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Libor s Final Days Begin With Push to Shake Up Swaps Market
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CHICAGO, May 24, 2021 /PRNewswire/ CME Group, the world s leading and most diverse derivatives marketplace, today announced it will launch interest rate futures based on the Bloomberg Short-Term Bank Yield Index (BSBY). These new contracts will be available for trading in Q3, with OTC clearing of BSBY swaps introduced in Q4, pending regulatory review. In response to client demand for credit sensitive instruments, we are pleased to introduce BSBY futures to offer both price discovery and risk hedging for the BSBY Index, said Sean Tully, Global Head of Financial and OTC Products at CME Group. Our launches of BSBY futures in Q3 – and cleared BSBY swaps in Q4 – will complement our existing short-term interest rate futures and Term SOFR index products, providing global market participants with a suite of capital-efficient risk management tools to manage their interest rate exposures going forward.