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Article: Merc readies new hedging tool based on the federal funds rate.(Chicago Mercantile Exchange)
- Article from:
- The Bond Buyer
- Article date:
- August 8, 1995
- Author:
CopyrightCOPYRIGHT 1995 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The Chicago Mercantile Exchange plans to offer an additional interest-rate hedging products based on the federal funds rate.
Responding to the market's need for more tools to hedge against fluctuations, the exchange said last week that it wants to add futures and options based on the monthly fed funds rate to its lineup of short-term interest rate contracts.
The exchange also intends to expand trading opportunities in its three- month Eurodollar contracts by listing more monthly expirations.
The exchange last week filed a request with the Commodity Futures Trading Commission to list the new federal funds rate contracts, which are similar to a product ...