The former daily volume record of 28,708 contracts was set on January 30, 2001, the day of a previous FOMC meeting.
The CBOT® Fed Funds futures contract provides the ideal risk management tool for market users who want to hedge their overnight and term financing risk, especially in advance of key financial reports and meetings that affect the nation’s economy.
Since its introduction in October 1998, the CBOT® Fed Funds futures contract has increasingly become an invaluable hedging and price discovery vehicle for financial institutions with short-term interest rate risk. Because the contract is based on the overnight Fed funds effective rate, market participants can use the CBOT® contract to manage the price risk associated for virtually any short-term interest rate cash instrument.
