Chicago Mercantile Exchange (CME) plans to offer a futures contract on the US Consumer Price Index (CPI) in 2004.
The new contract, the first product CME has listed on an economic indicator, is an effort by the exchange to catch the swelling OTC interest in inflation-based products. Inflation-based index products are more liquid in the European OTC market, but are still relatively small in the US.
Larry Grannan, associate director of CME interest rate products, told FO Week that the exchange decided to develop the product after several firms...