CME Group announced today that open interest in its SOFR futures has reached a new high of 12,701,232 contracts. This milestone reflects a robust growth in market engagement, with the product’s average daily volume (ADV) achieving a record 3.5 million contracts year-to-date.
Agha Mirza, CME Group’s Global Head of Rates and OTC Products, attributed this surge to the evolving expectations around monetary policy. “Market participants are increasingly relying on CME Group’s SOFR futures and options for their superior liquidity and precision in managing interest rate risk,” Mirza stated. “Our SOFR, U.S. Treasury, and Fed Funds products offer unmatched efficiency and liquidity, enabling clients to hedge or gain exposure to the entire U.S. yield curve.”
In addition to the record open interest, CME Group’s SOFR options are also experiencing significant activity, with an average daily volume of 1.6 million contracts year-to-date and open interest surpassing 42 million contracts.
Since their launch in May 2018, CME Group SOFR futures have garnered substantial interest from a diverse array of global market participants, including banks, hedge funds, asset managers, and principal trading firms. The contracts benefit from margin offsets against adjacent futures and options, portfolio margining with cleared interest rate swaps, and cross-margining with FICC-cleared U.S. Treasury notes, bonds, and select Repo transactions.
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