CBOT Fed Fund Futures Set Daily Volume Record

The Chicago Board of Trade (CBOT®) today announced that its Federal Fund futures contract set a record on Tuesday as volume surged to 286,935 contracts. The previous high mark, 262,840 contracts, was set on August 4, 2006.

In addition, the Exchange’s new Binary options on the Federal Funds Target Rate contracts, launched less than a month ago, also set a record yesterday. The new record for the Binary options stands at 769 contracts. The previous record, 745 contracts, was set on August 3, 2006.

Both contracts serve as an effective hedge against short-term interest rate exposure. Yesterday’s records were set the same day the U.S. Federal Reserve decided to hold the country’s benchmark interest rate at 5.25 percent.