SOFR Action is Heating Up as Traders Focus on Fed’s Rate Path
- Daily SOFR futures volume continues to grow versus eurodollars
- Trader bags $6 million from SOFR options trade on Tuesday
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Momentum is building in futures linked to the Secured Overnight Financing Rate as speculation on the immediate path of the Federal Reserve’s policy rate hits overdrive.
Action in the futures tied to the heir to Libor has “hastened dramatically to begin 2022, with trading activity in SOFR futures and swaps surging relative to their Libor-based counterparts,” exchange operator CME Group Inc. said Tuesday.