CME Group to serve as administrator for MAC swaps contract

Derivatives marketplace operator CME Group Inc (NASDAQ:CME) announced that it will serve as the administrator for SIFMA Asset Management Group’s (AMG) Market Agreed Coupon (MAC) swap contract, which was previously administered by SIFMA. MAC swaps are interest rate swap (IRS) contracts with pre-defined, market-agreed terms developed by SIFMA AMG and ISDA in 2013.

CME Group will serve as the administrator, calculation agent and publication agent for MAC swaps, and as a supplemental outlet for promoting and disseminating information about the contracts. SIFMA AMG will continue to be a resource for MAC swaps, and the standardized MAC swap coupon rates will continue to be available to industry participants free of charge.

MAC contracts provide the marketplace with an important choice for transacting interest rate swaps using pre-agreed terms,” said Laura Martin, Managing Director and Associate General Counsel, SIFMA AMG. “CME Group brings a systematic capability and proven infrastructure to calculate MAC swap coupons, monitor rates and further develop this product. We look forward to this collaboration and the benefits it will bring to end-users.

As part of CME Group’s benchmark administration services, we are pleased to serve as the administrator for MAC swaps, which promote transparency and liquidity in the IRS market,” added Agha Mirza, CME Group’s Global Head of Interest Rate Products. “CME Group continues to support efforts to bring capital and operational efficiencies to the industry and to our customers.

Each quarter, CME Group will calculate MAC rates and communicate via the CME Group website and an email distribution.

SIFMA’s Asset Management Group (SIFMA AMG) members represent U.S. asset management firms whose combined global assets under management exceed $34 trillion. The clients of SIFMA AMG member firms include, among others, tens of millions of individual investors, registered investment companies, endowments, public and private pension funds, UCITS and private funds such as hedge funds and private equity funds.

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