Half-Ticks Instituted for CME Eurodollar Back Months

The minimum price movement for back-month expirations in the Chicago Mercantile Exchange's Eurodollar futures contract has been reduced from one point to one-half point effective June 14. The reduction in price movement, or tick size, is designed to provide more efficient contract pricing. The change applies to Eurodollar expirations in years six through ten and complements changes made last August 17 to the first five years of contract expirations. The Eurodollar contract is the world's most actively traded short-term interest rate futures contract. Its quarterly expirations extend out a full ten years. It is listed with quarterly expirations running for 10 years. A full basis point for a Eurodollar contract equals USD25, with a half-tick equal to USD12.50.