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Euroyen are Japanese yen deposits outside of Japan. With two 3-month Euroyen futures contracts – one that settles to Euroyen TIBOR (Tokyo Interbank Offered Rate) and the other to Euroyen LIBOR – CME Euroyen futures provide a tool for hedging short-term risks on interest rate fluctuations on Euroyen. Euroyen TIBOR Futures Now on CME Globex CME offers customers round-the-clock access via CME Globex to CME 3-month Euroyen TIBOR futures and options. The Euroyen market has become more volatile in recent months and this is a particularly favorable time to offer hedgers and traders even wider access to CME Euroyen via CME Globex. In early March of 2006, the Bank of Japan ended its deflation fighting monetary policy which had been in place for five years and had kept its money market rates at nearly zero percent. The result has been one of the biggest upward moves in Japanese interest rates since the year 2000. To learn more about CME Euroyen futures and options on CME Globex, click here. CME Euroyen futures and options can be used to: - Hedge Euroyen based loans, swaps and deposits
- Hedge yen long-term forward foreign exchange exposure
- Spread against other CME financial products, such as Eurodollar futures and options
- Create synthetic assets and liabilities via "strip" trading
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
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