Cboe Global Markets Inc. has partnered with IHS Markit Ltd. and BlackRock Inc. to develop U.S. corporate bond index futures.
The products will use BlackRock's iShares exchange-traded funds ecosystem to create exchange-listed products that are designed to reflect the performance of the broad U.S. high-yield and investment-grade bond markets. More market participants will be able to access the $8.5 trillion U.S. corporate bond market through exchange-traded, centrally cleared instruments, Cboe said.
The futures products are expected to be liquid hedging vehicles for institutional investors with exposure to U.S. corporate debt and will be listed and traded on Cboe Futures Exchange, pending regulatory review by the U.S. Commodity Futures Trading Commission.
Cboe expects to launch the products in the summer, starting with the high-yield corporate bond index futures.