International derivatives marketplace CME Group today launched €STRWatch, which enables clients to understand the potential impact of ECB rate decisions on futures settlement prices.
The solution builds on the success of CME Group’s FedWatch, SOFRWatch and TreasuryWatch tools.
Using €STRWatch, clients will be able to analyze their expectations of the impact of ECB policy decisions in upcoming meetings, providing a view of where CME Group €STR futures prices could settle if their expectations prevail. Given the high correlation between the ECB’s deposit facility rate and the €STR rate, the tool takes into account the spread between these rates to project forward €STR rates.
“The recent shift in European interest rate policy has put even greater emphasis on the importance of risk management and the need for…
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