Friday, 27 January, 2023
Euro rates are moving. Is your hedge moving with them?
To: ajoye2@bloomberg.net“> Ashley Joye (ARCHR LLP )
Subject: FW: Euro rates are moving. Is your hedge moving with them?
Ashley Joye
Managing Partner
T
M
E
49 Carnaby Street,
London, W1F 9PY
United Kingdom
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From: CME Group <CMEGroup@cmegroup.com>
Sent: 27 January 2023 09:01
To: Ashley Joye <Ashley.Joye@archr.com>
Subject: Euro rates are moving. Is your hedge moving with them?
Trade CME €STR futures for a precise hedge
Trade CME €STR futures for a precise hedge
With rapid shifts in euro zone rates, traders are seeing the value of transaction-based reference rates like €STR that quickly reflect changes in rate expectations and enable more precise hedging of related risks.
€STR futures, launched October 31, 2022, offer streaming liquidity in both 3-Month futures and €STR-Euribor Basis Spread futures. Traders can manage €STR expectations outright or seamlessly express a view on the recently negative and highly volatile IBOR/OIS basis spread (Figure 1), now with volumes over 1,400 contracts per day (Figure 2).
Figure 1
Source: Bloomberg, data as of January 26, 2023
Figure 2
Source: CME Group, data as of January 25, 2023
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