The international derivatives market CME Group announced today that it will launch options on euro short interest rate (€STR) futures contracts on May 20, 2024.
“Our new €STR options will help clients more accurately manage their risk as expectations around European interest rate decisions continue to change,” said Mark Rogerson, Head of Interest Rate Products EMEA, CME Group. “This launch is the next step in the development of our strong €STR market and builds on the growing liquidity and participation in our €STR futures contracts.”
CME Group launched the industry’s first €STR futures contracts on October 31, 2022 as a complement to SOFR futures contracts. The firm recently increased its order book depth by 79%, while reducing bid-ask spreads by 31% and facilitating the final settlement of the largest futures expiration in the €STR market amounting to over 14,000 contracts last month.
€STR options will be quoted and subject to CME Group rules.