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U.S. Futures Exchange (USFE) announced today that it has signed a licensing agreement with Lehman Brothers to list cash-settled futures contracts derived from Lehman Brothers’ U.S. Treasury Index, U.S. Corporate High-Yield Index, U.S. Credit 7-10 Year Index and U.S. Treasury 7-10 Year Index. Futures on the Corporate High-Yield, U.S. Credit 7-10 Year, and U.S. Treasury 7-10 Year indices will be available exclusively on USFE’s all-electronic trading platform.
Additionally, USFE plans to facilitate spread trading between the Credit 7-10 Year Index and similar duration Treasury 7-10 Year Index, which provides an effective and highly leveraged approach for trading and hedging investment grade credit spreads.
“We are pleased that Lehman Brothers, the world leader in fixed income benchmarks, has chosen USFE to expand the derivations of these indexes, which are well established indicators for U.S. fixed income traders and portfolio managers,” said Satish Nandapurkar, CEO of USFE. “These futures contracts will be the premier fixed income products available on USFE’s global platform.”
“USFE offers an exciting new venue for futures on Lehman Brothers’ Corporate High-Yield, U.S. Treasury, U.S. Credit 7-10 Year and U.S. Treasury 7-10 Year Indexes,” said Ravi Mattu, global head of Equity and Fixed Income Research at Lehman Brothers. “Lehman Brothers and USFE share a unique commitment to market driven product innovation that is exemplified by this partnership.”
Lehman Brothers’ Corporate High-Yield Index, created in 1986, covers the USD-denominated, non-investment grade, fixed rate, taxable corporate bond market. The U.S. Treasury Index was launched in 1973 and includes public obligations of the U.S. Treasury. For more information about Lehman Brothers’ fixed income indexes, please refer to www.lehman.com/fi/indices/.
USFE plans to list its Lehman Brothers futures contracts in the fourth quarter of this year.
