10 Year Deliverable Swap Futures

What are 10 Year Deliverable Swap Futures?

Deliverable Swap Futures (DSF’s) contracts are aimed at providing a liquid means of managing rate exposure. This is done by offering the chance to trade actual interest rate swaps on a forward basis as a standard futures contract. Contrary to previous cash-settled interest rate swap futures, Deliverable Swap Futures contracts provide for delivery of ‘plain vanilla’ interest rate swaps cleared by the CME Clearing House.

Uses of 10 Year Deliverable Swap Futures

Other benefits of trading Deliverable Swap Futures (DSFs) include:

  • Lower margin levels of standardised products
  • Automatic risk offset against Treasury and Eurodollar products
  • Avoid additional funding costs often charged on initial margin for cleared IRS

Risks of 10 Year Deliverable Swap Futures

Deliverable Swap Futures (DSF) contracts are aimed at providing a liquid means of managing rate exposure. As such they are more of a risk management tool.

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