CHICAGO Feb 10 CME Group Inc, the
largest U.S. futures exchange operator, said on Monday it will
launch new interest rate swap futures contracts targeted at the
CME, which owns the Chicago Mercantile Exchange, will begin
trading Euro-denominated deliverable interest rate swap futures
on April 14, pending approval from the U.S. Commodity Futures
Trading Commission, the company said in a statement.
The Chicago-based exchange operator is banking on
international growth to expand and plans to launch its first
overseas exchange in London this year.
The Euro-denominated deliverable interest rate swap future
"is designed to meet the needs of European financial market
participants, including banks, hedge funds, asset managers and
insurers," CME said in the statement. CME already has U.S.
dollar-denominated deliverable interest rate swap futures.
"This product has the same economic exposure as an interest
rate swap with the margin and liquidity benefits of a futures
contract, and at expiration all open positions will deliver into
a CME cleared euro interest rate swap," the company said.
Nomura and Societe Generale are among firms
planning to serve as market markers for the new product,
according to CME.
The contract "will help clients and the industry gain more
efficient exposure to interest rates in a capital constrained
world," said Mohamed Braham, deputy global head of rates at
Societe Generale, in a statement.
The offering strengthens CME's position against rivals
IntercontinentalExchange Group and Deutsche Boerse AG's
Eurex, which both offer rate contracts targeted to the European
CME's planned London exchange also is part of its bid to
better compete with European rivals, such as Deutsche Boerse
. CME has said it intends to offer foreign-exchange
and commodities contracts on the London-based market. The
operation was set to start in September but has been delayed