CME LIBOR futures represent one-month LIBOR rates on a $3 million deposit. LIBOR is often used as the benchmark rate for commercial loans, mortgages and floating rate debt issues. CME LIBOR futures and options are of particular value to fixed income managers who need short-term intervals for managing their interest rate risk.

CME lists twelve consecutive monthly LIBOR futures at any given time, but most trading occurs in the expiration months that correspond with the quarterly expirations of CME Eurodollars - March, June, September and December.

Advantages of CME Interest Rate Markets

• Concentrated liquidity - More than 1.5 million CME interest rate futures trade every day resulting in consistently tight spreads
• Price transparency - At CME, trading transactions take place in an open, fair and anonymous trading environment with market prices universally available in real time
• Market integrity - CME Clearing serves as counterparty to every trade protecting the financial integrity of CME markets
• Regulatory assurance – The highest trading standards and supervision are assured through the integrated compliance and market surveillance functions of CME

CME also offers CME Clearing360™, a clearing solution for over-the-counter (OTC) market participants. CME Clearing360 is an extension of existing CME Clearing services, and offers customers the flexibility of OTC transactions with the risk management efficiencies of centralized clearing.

As part of the CME Clearing360 initiative, CME offers Substitutions, or “Subs”, which allow market participants to streamline the transaction process, consolidate OTC and futures positions for administration and clearing, and work with a single counterparty - CME Clearing. To learn more about CME Subs and our new Subs pricing program, visit www.cme.com/subs.