Libor futures

CME LIBOR futures represent one-month LIBOR rates on a $3 million deposit. LIBOR is often used as the benchmark rate for commercial loans, mortgages and floating rate debt issues. CME LIBOR futures and options are of particular value to fixed income managers who need short-term intervals for managing their interest rate risk.

CME lists twelve consecutive monthly LIBOR futures at any given time, but most trading occurs in the expiration months that correspond with the quarterly expirations of CME Eurodollars - March, June, September and December.

Advantages of CME Interest Rate Markets

• Concentrated liquidity - More than 1.5 million CME interest rate futures trade every day resulting in consistently tight spreads
• Price transparency - At CME, trading transactions take place in an open, fair and anonymous trading environment with market prices universally available in real time
• Market integrity - CME Clearing serves as counterparty to every trade protecting the financial integrity of CME markets
• Regulatory assurance - The highest trading standards and supervision are assured through the integrated compliance and market surveillance functions of CME