Cboe Global Markets, a provider of global market infrastructure and tradable products, is tolaunch futures on the AMERIBOR (American Interbank Offered Rate) Term-90 interest rate benchmark. The new futures are expected to begin trading on Cboe Futures Exchange, LLC (CFE) on business date Monday, 24 January, 2022.
AMERIBOR, disseminated by the American Financial Exchange, LLC (AFX), is a transparent, transactions-based interest rate benchmark that represents market-based borrowing costs. The AMERIBOR Term-90 benchmark is specifically designed to capture wholesale funding costs for American financial institutions over a ninety-day period at a specific moment in time.
The planned AMERIBOR Term-90 futures (AMT3 futures) further expands Cboe’s suite of AMERIBOR futures products and follows its recent launch of futures on the AMERIBOR Term-30 benchmark, the thirty-day term rate. As the planned cessation of LIBOR approaches, these futures aim to provide an alternative for market participants to hedge their interest rate risks on loans, or execute interest-rate trading strategies.
