CME Group said this week that its Adjusted Interest Rate (AIR) Total Return futures have reached a new milestone, with open interest surpassing 1 million contracts, equivalent to $365 billion notional.
CME Group’s AIR Total Return Futures Hit Record 1 Million Contracts
The derivatives exchange also reported a single-day trading record of 109,000 contracts, worth $40 billion notional, on 11 September.
The contracts, designed to replicate the economics of total return swaps while adjusting for interest rate risk, are gaining traction among institutional investors.
Average daily volume for 2025 has reached 25,000 contracts, marking an 80% increase compared with last year.
“More institutional investors are turning to our AIR Total Return futures to access U.S. index returns while mitigating interest rate, balance sheet and counterparty risks,” said Paul Woolman, Global Head of Equity Products at CME Group.
He added that the futures serve as a cost-effective alternative to over-the-counter swaps and give clients flexibility to manage equity financing risk through calendar spreads along the financing curve.
AIR Total Return futures, based on the Effective Federal Funds Rate, are available on major benchmarks including the S&P 500, Nasdaq-100, Russell 1000, Russell 2000 and Dow Jones Industrial Average. CME also offers contracts tied to the Secured Overnight Financing Rate (SOFR) for the S&P 500.
The strong uptake highlights the growing appeal of exchange-traded instruments as investors seek solutions for managing equity exposures. CME said the continued growth of AIR products reflects the capital efficiencies available across its equity markets.
