First 3-year U.S. Treasury Note derivatives begin trading today on Eurex US

We have responded to the demands of our clients for innovative Treasury products

The world’s first derivative products based on 3-year U.S. Treasury Notes began trading today on Eurex US, the fully-electronic U.S.-based futures and options exchange. As previously announced, Eurex US expanded its product suite of benchmark USD-denominated fixed income derivatives to include 3-year U.S. Treasury futures and options on futures, meeting customer demand for derivatives on shorter term U.S. Treasury Notes and further increasing the attractiveness of its U.S. fixed income products.

To provide basis liquidity to the new 3-year U.S. Treasury Note derivatives, which will trade in 5 cent increments, nine firms have already agreed to act as market makers. These firms will provide additional liquidity and increase order book depth by continuously quoting prices and offering competitive spreads.

Satish Nandapurkar, CEO of Eurex US said: “Today we have responded to the demands of our clients for innovative treasury products and introduced the world’s first 3-year U.S. Treasury future, thereby creating new trading opportunities for all market participants. We will continue to move toward our goal of offering a complete line of products as we launch equity index contracts at the end of the week”. Russell 1000® and Russell 2000® futures will begin trading on Eurex US on February 4.

In addition, Eurex US’ modifications to the 2-year US Treasury Note futures and options took effect today. The contract value has been raised from 200,000 USD to 1 million USD, bringing the contract in line with the trade sizes in the underlying cash bond market and making the product even more appealing. The types of deliverable short-term U.S. Treasury notes will be changed to allow for longer original maturity and wider delivery windows. A short-term note must have an original maturity of less than 3 years and 3 months to be deliverable against the modified 2-year contract. The delivery window will be widened to 1 year and 6 months through 2 years and 3 months.