CME’s Last Open-Outcry Pit Makes Leap to Post-Libor World
- Options tied to SOFR now outnumber eurodollar contracts
- Clients prefer open outcry for complicated derivatives trades
CME’s last-surviving trading pit handles options on eurodollars and SOFR.
Source: CME GroupThis article is for subscribers only.
More than a decade after the Libor-rigging scandal shocked the financial industry, derivatives traders in CME Group Inc.’s last open-outcry pit are finally shifting their focus to contracts based on the replacement for London Interbank Offered Rates.
The number of options on futures linked to the Secured Overnight Financing Rate, or SOFR, recently overtook the corresponding figure for eurodollar futures that settle at Libor rates.