CBOT Chairman Nicholas J. Neubauer said, "Friday's performance in 10-Year Interest Rate Swap futures was excellent, the best launch-day performance I have seen in any contract for a long time. I was especially pleased with the flow of orders, the tight markets, and the large number of participants in the pit. We are very excited about the potential for this contract."
CBOT Director Robert Corvino said, "Among the many attractions of CBOT's new Swap futures market are its synergies with the Exchange's liquid and time-tested Treasury Bond, Treasury Note, and Agency contract markets. With Swap futures, we've expanded the liquidity and versatility that our customers expect."
CBOT Member and Swap futures trader Bill Beach said, "CBOT 10-Year Interest Rate Swap futures bring unparalleled flexibility to the marketplace. In part that's because CBOT allows exchange-for-physical transactions (EFPs) and exchange-of-futures-for-swap transactions (EFSs), both of which enable CBOT's customers to execute large-scale trades at one price. EFSs also provide the Exchange's customers with a flexible and inexpensive means of initiating, adjusting, or unwinding their over-the-counter swap positions."
This new cash-settled product offers institutional investors -- such as bank treasurers, mortgage passthrough traders, mortgage servicers, and investment portfolio managers -- another vehicle for hedging credit and interest rate exposure. The Exchange currently lists three contract expirations, December 2001, March 2002, and June 2002. Regular trading hours are as follows:
- 7:20 a.m. to 2:00 p.m. Chicago time (Mon.-Fri.) - Open Outcry
- 8:00 p.m. to 4:00 p.m. Chicago time (Sun.-Fri.) - Electronic
