Eurodollar

Eurodollar options are the most actively traded, exchange-listed interest rate options contracts in the world. Their unsurpassed liquidity enables traders to express their views on the direction of U.S. interest rates or to hedge exposure to the short end of the dollar rate curve. A wide range of expirations are available, including: serial and quarterly expirations; mid-curve expirations, including weekly mid-curves, and Treasury matched mid-curves (TOMMis)

As of August 18, 2008, we will begin offering Eurodollar Calendar Spread Options (CSOs). These complement the extant family of Eurodollar options by allowing market participants to better manage risk exposures specifically tied to the slope of the Eurodollar rate curve.

View a calendar (PDF)  of serial, quarterly and weekly mid-curve expirations, and TOMMi expirations, to see the opportunities available.

Things to know:

• Like Eurodollar futures, Eurodollar options are quoted in index points. Because the futures price, the options price and the strike price are quoted in the same terms, the price relationships are clearly observable.
• Improved functionality and growing volume are transforming the electronic Eurodollar options market, making it easier for customers to execute complex trading strategies and capitalize more quickly on changing trends in the marketplace.
• Eurodollar options trade on the CME Globex platform virtually 24 hours a day, with customers around the world. Trading outside the United States is facilitated through telecommunication hubs in London, Amsterdam, Dublin, Gibraltar, Milan, Paris and Singapore.
• Eurodollar options also trade side-by-side on the CME Group trading floor during open outcry trading hours
• CME Clearing clears and settles all trades and guarantees counterparty creditworthiness

About Eurodollar options on CME Globex
The best way to access CME electronic options is through CME Globex Partners. Comprised of ISV and FCM front-end trading system providers, CME Globex Partners offer enhanced electronic access to the CME options markets. For more information, contact your FCM or ISV directly. If your FCM or ISV does not currently support enhanced option functionality on CME Globex, you may want to consider CME EOS Trader, a web-based front-end system with comprehensive electronic access to options trading for CME Interest Rate, Equity, FX, and Commodity products, as well as NYMEX Energy products.

Eurodollar options on CME Globex enable you to:

• Execute complex trading strategies virtually instantaneously
• Take quick action on changing trends
• Benefit from complete price transparency and anonymity
• View market prices in real time
• Choose from more than 120,000 predefined outright and spread combinations
• See transactable quotes on a subset of outright puts, calls, straddles, and many actively traded spreads.

Functionality for Eurodollar options on CME Globex includes:

• Covered options
• Top order allocation
• Market maker protections
• Automated Request for Cross (RFC) trades
• Extensive spread strategy functionality
• Easy, secure Internet access
• Flexible front-end order entry system
• User Defined Spread functionality

Discounted Fees for CME Eurodollar Options on CME Globex
CME has instituted special fee incentives beginning in May and continuing through December 31, 2008 for CME Eurodollar options executed on the CME Globex platform:

• CME Globex fees for members are discounted from $0.25 to $0.15
• CME Globex fees for non-members are discounted from $0.55 to $0.25
• In addition, there is a waiver of the $0.05 give-up surcharge for all CME Eurodollar options executed electronically.