Euroyen futures contracts allow institutions with yen interest rate exposure to change the nature of that risk. For example, a holder of floating rate, yen-denominated debt can transform this floating rate asset into a fixed rate asset by buying futures. Alternatively, the cost of anticipated borrowings can be fixed in advance by selling futures. Because futures and options are off-balance-sheet instruments, marked to the market daily and guaranteed by the Chicago Mercantile Exchange® (CME) Clearing House, they offer an extremely efficient means of managing risk.

Euroyen futures can be used to:

• Hedge Euroyen loans, swaps and deposits,
• Hedge yen forward foreign exchange exposure,
• Spread against other CME financial products,such as Eurodollar futures,
• Create synthetic assets and liabilities via "strip" trading.