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CME Group Launches €STRWatch to Help Clients Manage Risk Around ECB Policy Decisions

Published 07/01/2024, 10:10 PM
CME
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CHICAGO, July 1, 2024 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, has today launched €STRWatch, which enables clients to understand the potential impact of ECB rate decisions on futures settlement prices and builds on the success of CME Group's (NASDAQ:CME) FedWatch, SOFRWatch and TreasuryWatch tools.

Using €STRWatch, clients will be able to analyze their expectations of the impact of ECB policy decisions in upcoming meetings, providing a view of where CME Group €STR futures  prices could settle if their expectations prevail. Given the high correlation between the ECB's deposit facility rate and the €STR rate, the tool takes into account the spread between these rates to project forward €STR rates.

"The recent shift in European interest rate policy has put even greater emphasis on the importance of risk management and the need for comprehensive data to understand what the market is pricing in for €STR contracts," said Mark Rogerson, Head of Interest Rate Products, EMEA, CME Group. "As our €STR futures marketplace continues to build liquidity and participation, we have launched this new tool to help clients navigate this period of monetary policy change."

€STRWatch is available for use ahead of the next ECB monetary policy meeting scheduled for July 25.

For more information on €STR Watch, please visit  https://www.cmegroup.com/estrwatch. For the underlying methodology, please visit https://www.cmegroup.com/estrwatch-methodology.

As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data “ empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on  interest rates,  equity indexes,  foreign exchange,  energy,  agricultural products  and  metals.   The company offers futures and options on futures trading through the CME Globex ® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform.   In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing.  

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and, E-mini are trademarks of Chicago Mercantile Exchange Inc.   CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.   NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.   COMEX is a trademark of Commodity Exchange, Inc. BrokerTec and EBS are trademarks of BrokerTec Europe LTD and EBS Group LTD, respectively. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P ®", "S&P 500 ®", "SPY ®", "SPX ®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones ®, DJIA ® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners.

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