CME Group reveals effort to motivate ‘SOFR first’ choices trading

To aid speed up the development of Secured Overnight Financing Rate choices trading, CME Group today revealed a brand-new “SOFR First for Options” effort that will begin in June. The effort “will help propel successful transition of the exchange-traded options market, one of the last key remaining markets that still needs to shift away from U.S. dollar Libor ahead of its cessation in mid-2023,” according to the Alternate Reference Rates Committee.

Among other things, CME Group will take actions to offer a market-wide charge waiver for SOFR choices in June and July, and present extra market making rewards to assist boost liquidity. CME Group will likewise sunset the listing of long-dated quarterly Mid Curve and Eurodollar choices that, upon expiration, will be changed by SOFR choices.


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