CME Group has announced the expansion of its benchmark U.S. Treasury futures and options offering after adding 20-year U.S. Treasury Bond futures. However, the offering will be available after regulatory approval.

The Treasury Bond futures will offer the 20-year U.S. Treasury Bonds with the remaining maturity terms of up to 19 years and two months. CME Group says the Bonds will deliver precision and efficiency when dealing with exposure at the 20-year maturity level on the U.S. treasury curve.

The Move Is In Response To High Feedback From The Trading Community

Global Head of Rates and OTC Products at CME Group, Agha Mirza, noted that the 20-Year bond is responding proportionately with the need for a hedging tool at a more important time to manage U.S. Treasury market risk.

He added that the total issuance of the 20-Year U.S. treasury bonds have been more than $450 billion since it started in May 2020. This has opened up a demand for a new product that establishes 20-year yield exposure.

In line with that, the new contract design is a reflection of extensive feedback received from the trading community and a broad range of clients.

Mirza reiterated that the Treasury Bond futures will have direct margin offsets against existing interest rate futures when it is rolled out. When listed, it will be subjected to the CBOT rules. It will also be eligible for managing its portfolio against other cleared interest rate swaps and futures before the launch.

CME Group Expands Offerings To Clients

CME Group allows clients to analyze data, optimize portfolios, and trade options, futures, cash, and OTC markets. The leading derivatives marketplace empowers market participants worldwide to see trading opportunities and manage risks in the right way.

The company provides a wide range of global benchmark products across different asset classes, including foreign exchange, equity indexes, metals, agricultural products, interest rates, and energy.

Its EBS platform offers foreign exchange trading while fixed-income trading is provided through its BrokerTec platform. Additionally, its CME Global platform provides futures and options trading while CME clearing operates as one of the major central clearing counterparty clearing providers in the world.