CME Group to Launch Deliverable Interest Rate Swap Futures

CME Group announced it will launch deliverable Interest Rate Swap Futures contracts on November 13, 2012. The contracts will be listed on, and subject to, the rules and regulations of CBOT and will be submitted to and reviewed by the CFTC. According to CME, Interest Rate Swap Futures fill a gap in the rates market, as they will allow clients to access swap exposure while providing cross-margining.

Lofchie Comment: The product illustrates again the eccentricity of subjecting "swaps" to extremely burdensome regulations as compared to "futures," where the products are essentially similar. To find a somewhat related news story on a new ICE product, go to the tabs on the right, select "One Month Ago" and "UK and EU Regulation"; there is an item dated September 4 relating to an ICE product.