Cbot names Citigroup and Goldman e-market makers for IRS futures contracts

Source: CBOT

The Chicago Board of Trade (CBOT) announced today that Citigroup and Goldman Sachs & Co. will become electronic market makers for the Exchange's Interest Rate Swap futures contracts.

These two premier firms will join the existing electronic market maker and provide liquidity to all market participants in CBOT 5-year and 10- year Swap futures beginning in July 2006.

CBOT 5-year and 10-year Swap futures offer a flexible, cost effective way to manage swap rate exposure. With these contracts, traditional counter-party credit risk is significantly mitigated by the guarantee of the centralized clearinghouse, while real-time dynamic prices, through the e-cbot(R) electronic trading platform, provide the market with an unbiased, transparent benchmark of swap rates.

Robert D. Ray, Senior Vice President of Business Development at the CBOT said, "Citigroup and Goldman Sachs & Co. are two of the most respected participants in the financial markets. Their participation as electronic market makers in CBOT Swap futures ensures that both firms will take a leading role in the convergence of cash securities, over-the-counter derivatives and now the listed futures markets. This will, in turn, enable capital to flow freely between the various markets based upon the needs of each customer."

Ken Tremain, Head of U.S. Interest Rates at Citigroup said, "We believe the timing is right for the success of the CBOT Swap futures complex. The increased transparency and centralized clearing function it offers, combined with the committed liquidity of two major dealers, will greatly benefit users and lead to the overall growth of the swap rate markets."

Colin Corgan, Head of U.S. Swaps Trading at Goldman Sachs & Co. said, "CBOT Swap futures will provide us with an opportunity to better serve the marketplace and the ever-evolving requirements of our customers. The combined commitments of the CBOT and two prominent firms in the swap market will accelerate the integration of asset classes resulting in long-term benefits to the entire market."

Comments: (0)

sponsored