Worldwide derivatives market CME Group as we speak introduced that its Treasury Invoice (T-Invoice) futures, launched on October 2, have traded greater than 6,000 contracts, with open curiosity exceeding 1,500 contracts.
“In only one week, it’s clear that shoppers are turning to our new T-Invoice futures to hedge in opposition to the yield threat of 13-week U.S. Treasury securities,” mentioned Agha Mirza, CME Group International Head of Charges and OTC Merchandise. “With extra buyers gaining publicity to short-term U.S. authorities debt, T-Invoice futures can present a capital-efficient threat administration software with alternatives for inter-commodity unfold buying and selling and margin offsetting.”
CME Group’s introduction of T-Invoice futures corresponds with file threat switch within the U.S. Treasury market. Throughout the yield curve, open curiosity within the firm’s present suite of deeply liquid U.S. Treasury futures has reached $2.4 trillion in 2023, a rise of 49% year-over-year, with a file common day by day quantity of 5.4 million contracts year-to-date.
Since final week’s launch, greater than 25 market contributors have traded T-Invoice futures, with an roughly even cut up of quantity between market-makers and customers. T-Invoice futures are cash-settled and based mostly on the 13-week U.S. Treasury Invoice public sale low cost yield.
T-Invoice futures are listed with, and topic to, the principles of CME, receiving automated margin offsets in opposition to present CME Group Curiosity Price futures. These contracts will change into eligible for portfolio margining in opposition to different cleared rate of interest swaps and futures shortly after launch.