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CME Group (CME) to Introduce Adjusted Interest Rate TRF

CME Group Inc. CME has unveiled Adjusted Interest Rate (AIR) Total Return futures on the FTSE 100 Index.

Earlier, the company had introduced S&P 500 Total Return Index Futures to aid the market participants limit the expenses on the back of new swap margin rules. This move of CME Group was intended to address the varying requirements customers in the global marketplace.

Therefore, following the success of the growing suite of Total Return contracts, CME Group launched the new FTSE 100 AIR Total Return futures (TRF), which will furnish capital-efficient, exchange-traded alternative to total return swaps.

The AIR TRFs entitle the clients with further benefits of a listed derivatives marketplace, while aiding them to trade leading benchmark instruments along with managing capital and repo risk conveniently.

The newly launched AIR Total Return futures will add to CME Group's robust suite of interest rate futures and options.

CME Group remains focused on driving growth and customer acquisition by expanding, innovating and scaling up its core offerings, and increasing participation from non-U.S. customers. This is achieved by expansion of its global sales team, cross-selling of products, expansion of the existing benchmark products, product and service launch and deepening of open interest in core futures and options offerings.

Per its strategic initiatives, CME Group has undertaken various product launches. The company launched the Used Cooking Oil Methyl Ester (UCOME) futures contracts to support the transition to a greener energy market for transportation fuels. It unveiled Pork Cutout futures and options to boost its leading agricultural benchmarks. Further, it launched Micro WTI futures to enhance its robust suite of energy futures and options.

Also, recently, it introduced (BSBY)-based interest rate futures to boosts the prevailing short-term interest rate futures as well as Term SOFR index products.

CME Group focuses on maximizing futures and options growth globally, diversifying business and revenues, and delivering unparalleled customer efficiencies and operational excellence.

Shares of this largest futures exchange in the world in terms of trading volume as well as notional value traded has rallied 19.8% in the year-to-date period, outperforming the industry’s increase of 6.6%. Moreover, the company’s policy to ramp up its growth profile and capital position should drive shares higher.

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The stock carries a Zacks Rank #3 (Hold) currently.

Stocks That Warrant a Look

Some better-ranked stocks from the finance sector are OTC Markets Group Inc. OTCM, Nasdaq NDAQ and Virtu Financial, Inc. VIRT, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings of OTC Markets surpassed estimates in each of the last four quarters, with the average earnings beat being 33.47%.

Nasdaq surpassed bottom-line estimates in each of the last four quarters, with the average earnings beat being 8.30%.

Virtu Financial surpassed estimates in each of the last four quarters, with the average earnings beat being 30.04%.

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