The first CME Economic Derivatives auction on US Initial Jobless Claims took place on September 29, 2005, from 6:00am to 7:00am Chicago time (CT).
CME has partnered with Goldman Sachs to provide CME Economic Derivatives, a new set of risk management products geared to key US and European economic indicators. At the time of the auctions, these releases are the highest priority for the asset markets. CME Economic Derivatives auctions represent the best insight into the markets’ expectation for the releases.
CME Economic Derivatives offer a broad range of digital and vanilla options as well as forwards that will trade the morning prior to the release of economic data, including U.S. nonfarm payrolls, the Institute of Supply Management’s PMI, weekly initial jobless claims, advance retail sales, European inflation, the International Trade Balance and GDP. The wide variety of instruments allows investors to tailor very precise hedges or exposures to each economic indicator.
Macroeconomic data releases, such as business activity indexes, national income accounts or inflation measures, drive today’s economy and influence portfolio values. To date, direct mitigation of the risks posed by these releases has been difficult. As a result, risk managers have typically resorted to trading proxies for the releases, such as bonds, equities, foreign exchange, and related derivatives.