CME Group recently revealed that its Secured Overnight Financing Rate (SOFR) complex has achieved a significant milestone by setting a new record of 60,435,467 contracts. This total comprises 48.3 million options contracts and 12.1 million futures contracts, all of which operate under CME rules.

Throughout the year, the average daily volume (ADV) in SOFR futures and options reached an impressive 5.1 million contracts. This highlights the widespread participation from diverse entities such as global banks, hedge funds, asset managers, principal trading firms, and other traders. Notably, these contracts are eligible for portfolio margining against other cleared interest rate swaps and futures. According to a press release by CME Group, SOFR futures were launched in May 2018 and SOFR options were introduced in January 2020.

Agha Mirza, CME Group Global Head of Rates and OTC Products said in a press release by CME Group: "As the world's leading tools for hedging short-term interest rate risk, global market participants continue to turn to our SOFR futures and options to navigate uncertainty." Mirza added: "We are pleased with the ongoing growth of our SOFR complex, which now exceeds the highest annual ADV that Eurodollar futures and options reached in their four-decade history."

The Secured Overnight Financing Rate (SOFR) is a key metric for overnight cash borrowing collateralized by Treasury securities. The SOFR futures offered by CME are crucial for price discovery and serve as the primary liquidity pool for hedging USD short-term interest rates. These contracts offer seamless spread trading with various futures and provide unmatched capital efficiencies. In response to customer input, CME Group introduced 3-Month and 1-Month SOFR futures to meet diverse risk management needs. According to information provided on the SOFR webpage by CME Group, SOFR has been published by the Federal Reserve Bank of New York since April 2018. It is endorsed by the Fed-sponsored Alternative Reference Rates Committee (ARRC), correlates with existing money market rates, and is backed by the U.S. Treasury overnight repo market. S&P Global Ratings recognizes it as an "anchor money market reference rate".