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Options on U.S. Treasuries

Effective February 19th, 2013, NASDAQ OMX launched options trading on underlying U.S. Treasury Securities on the NASDAQ OMX PHLX exchange. This innovative new fixed income product will offer a flexible, cost-efficient solution for investors who wish to trade single options contracts on a specific, underlying Treasury note or bond. These options are available under the following symbols:

For the 30-Year ‘On-The-Run’ Treasury Bond:

  • USF (February Auction)
  • USI (May Auction)
  • USJ (August Auction)
  • USW (November Auction)

For the 10-Year ‘On-The-Run’ Treasury Note:

  • TYF (February Auction)
  • TYI (May Auction)
  • TYJ (August Auction)
  • TYW (November Auction)

Challenges In The Current OTC Treasury Market


Options on underlying U.S. Treasury securities will serve to counterbalance challenges in the over-the-counter (OTC) Treasury Market, such as:
  • High concentration of credit exposure for over-the-counter OTC derivatives constituting a risk component that regulatory reforms seek to address
  • Fragmented transaction reporting making it difficult to assess overall market risk

Advantages To Trading On An Exchange

  • Trading in a highly regulated and transparent exchange environment
  • Availability of options contracts in a securities account
  • Standardization of products with options on a specific underlying treasury notes or bonds
  • Market participants will benefit from price transparency and liquidity
  • Mitigation of counterparty credit risk because products are issued and guaranteed by the Options Clearing Corporation (OCC)

BENEFITS TO TRADING OPTIONS ON U.S. TREASURIES ON NASDAQ OMX


How To Find Option Quotes

  • On Bloomberg type ‘TOMO’ and hit to find Options on U.S Treasuries quotes.
  • On Thomson, LiveVol or other vendors that use symbols, quotes can be found using the current option symbol (i.e., TENFB/THIFB).

Getting Started:

  • Options on U.S. Treasuries will be structured to be available for trading through any approved options account at a securities broker-dealer.
  • Contact your broker-dealer for more information.