CME Group is set to introduce CME Term €STR reference rates in response to client demand.
Across the market, participants are keen for a term rate anchored in €STR markets, said the firm.
The rates will be published in tenors of one, three, six, and 12 months and are based on CME Group’s liquid €STR futures and OTC swap market data.
“We are introducing €STR term rates in response to client demand for a more robust and transparent term rate for the growing €STR ecosystem,” said Max Ruscher, head of benchmark services, CME Group.
“Building on the increasing liquidity in our €STR futures market and OTC trade data, our term rate is based on comprehensive derivatives transactions data that will help clients build lending and fixed income products.”
Read more: CME Group set to launch €STR options in Q1 2024
Since the launch in October 2022, more than 5 million €STR futures contracts have been, said the firm.