- First contracts based on an Optimal Blue Mortgage Market
Index
CHICAGO, Nov. 19,
2024 /PRNewswire/ -- CME Group, the world's leading
derivatives marketplace, today announced it will expand its
interest rate complex with the addition of Mortgage Rate futures in
January 2025, pending regulatory
review.
"For the first time ever, market participants will have a
precise and highly-efficient tool for managing risk across mortgage
pipelines, servicing rights and securities," said Agha Mirza, CME Group Global Head of Rates and
OTC Products. "As the fixed income market continues to evolve, our
new Mortgage Rate futures will enable clients to trade the
primary-secondary mortgage spread and gain unrivaled margin offsets
with our U.S. Treasury futures, TBA futures and Eris SOFR swap
futures."
"Optimal Blue is the authority on primary market mortgage
pricing, with roughly 35% of mortgage locks being processed through
our capital markets platform," said Joe
Tyrrell, CEO of Optimal Blue. "We are proud to contribute
our Optimal Blue Mortgage Market Index to CME Group to give
originators and owners of mortgage assets another tool to hedge
risk. This aligns with Optimal Blue's mission to help lenders and
market participants maximize profitability on every loan
transaction."
Mortgage Rate futures are cash-settled contracts that provide
direct exposure to the latest primary mortgage rate available to
borrowers. The contracts are the first-ever to be based on the
30-Year Fixed Rate Conforming Optimal Blue Mortgage Market Index
(OBMMI), which is designed for IOSCO compliance and tracks
real-time rate lock data from more than one-third of U.S.
residential mortgage originations.
Available to trade on CME Globex, Mortgage Rate futures will be
listed with, and subject to, the rules of CBOT and cleared by CME
Clearing. In addition to margin offsets against U.S. Treasury
futures, soon after the launch date, the contracts will be eligible
for Portfolio Margining with cleared swaps. CME Clearing
currently provides more than $20
billion in daily margin efficiencies between interest rate
futures, options, cleared swaps and cash securities.
For more information, please visit
www.cmegroup.com/mortgage-futures.
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 is a trademark of BrokerTec Americas LLC
and EBS is a trademark of EBS Group LTD. 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.
CME-G
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SOURCE CME Group