CME Group announced the expansion of its U.S. Treasury options suite by introducing Monday expiries, enhancing risk management capabilities during crucial market events. Traders, in addition to the established Wednesday and Friday expiries, now have the option to leverage more precise risk management tools at the Chicago-based derivatives marketplace, according to a press release by CME Group.

CME Group's Weekly U.S. Treasury options, governed by CBOT rules, automatically receive margin offsets against existing CME Group Interest Rate futures and options. In 2023, CME Group achieved a record average daily volume (ADV) of 1.1 million contracts in U.S. Treasury options, including a record ADV of 348,000 contracts in Weekly U.S. Treasury options, said CME Group.

"Our short-term options provide enhanced opportunities to navigate the historic volatility and record risk transfer that is taking place in the U.S. Treasury market," said Agha Mirza, CME Group Global Head of Rates and OTC Products. "In today's uncertain rate environment, Fed meetings, economic reports and other data-driven indicators are increasingly driving risk for our clients. With this in mind, we added Monday expiries to our U.S. Treasury options suite to enable additional hedging across the yield curve for weekend risk," said Mirza.

For Monday Weeklies, expiring at 2:00 p.m. CT, there are no contrary instructions allowed at expiration; two expirations can be listed at any time; and exercise can be done into the next quarterly futures expiry while maintaining the same strike price intervals and minimum tick sizes as Friday Weeklies. Similarly designed Wednesday Weeklies also expire at 2:00 p.m CT with identical features as Monday Weeklies which allow for exercise into the next quarterly futures expiry as well as allowing contrary instructions permitted at expiration for Friday Weeklies according to information from the Weekly Options page on the CME Group website.