SOFR Options Wagers Outnumber Eurodollars for the First Time (1)

The eurodollar options market was overtaken in size by the product created to replace it, options on SOFR, a new short-term lending benchmark rate.

Open interest in SOFR options -- the number of contracts in which traders have positions -- totaled 20.5 million as of Tuesday’s close, a record high, according to CME Group Inc., which lists both products. Open interest in eurodollar options fell to 20.2 million.

Eurodollar and SOFR futures and options on them are the main vehicle for wagers related to Federal Reserve policy expectations and bond-market volatility.

Eurodollars -- futures on the London Interbank ...