CBOT®‚ Chairman Nickolas J. Neubauer said, "These new contracts are one in a series of new products CBOT® President David Vitale and his management team plan to bring to the marketplace, and will furnish new, more effective risk management tools for swaps market participants, particularly those seeking alternative benchmarks to Treasury securities."
CBOT®" President and CEO David J. Vitale added, "These new products will reinforce the Chicago Board of Trade's preeminent franchise in world capital markets. The CBOT® will continue to take advantage of opportunities presented by emerging market trends, and, coupled with the liquidity CBOT® members bring to all the exchange's products, do everything we can to further enhance service to our customers."
The new CBOT®‚ swaps contracts will offer institutional investors--such as bank treasurers, mortgage passthrough traders, originators, service managers, portfolio managers, and other OTC market participants -- a vehicle for hedging credit and interest rate exposure. Moreover, compared with the over-the-counter market, trading of swaps futures will reduce administrative cost and eliminate counter-party risk. This will in turn enhance the overall swaps cash market.
