CME - CME Group to launch TBA Futures for MBS market on October 3

Derivatives marketplace, CME Group (NASDAQ:CME) will expand its suite of long-term interest rate products to offer the first-ever 30-Year Uniform Mortgage-Backed Securities (UMBS) TBA futures contracts on October 3, pending regulatory review. The vast majority of residential mortgages in the U.S. are securitized through the agency MBS market, which is the second-largest debt market in the U.S. behind U.S. Treasuries. During the last 4 quarters (Q2 2021-Q1 2022), the UMBS TBA market had a daily volume of $195B, representing 80% of overall TBA volumes per FINRA Trace and NY Fed data. "Our new 30-Year UMBS TBA futures contracts will provide the mortgage-backed securities market with access to a liquid risk management tool to hedge their risk in a more capital efficient way. This is a significant step in the expansion of our suite of interest rate products, which will enable clients to benefit from the ability to access UMBS TBA futures alongside our deeply liquid U.S. Treasury and short-term interest rate futures

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CME Group to launch TBA Futures for MBS market on October 3