IDEAS home Printed from
   My bibliography  Save this book chapter

Interest Rate Futures: Elements of a Successful Financial Innovation



  • Bluford H. Putnam


U.S. interest rate futures, including Eurodollar time deposit and U.S. Treasury futures contracts, comprise one of the most successful financial innovations ever created. This chapter examines why and how U.S. interest rate futures became so popular. Sections cover the critical characteristics of exchange-traded futures that foster investor confidence to use the products, the historical context and process of innovation that led to the creation of U.S. interest rate futures, how the standardization of interest rate futures allowed interaction with other credit markets, and the importance of interest rate expectations and an appreciation of interest rate uncertainty. We close with some brief remarks relevant to the role interest rate risk management plays in the growth of a dynamic economy.

Suggested Citation

  • Bluford H. Putnam, 2015. "Interest Rate Futures: Elements of a Successful Financial Innovation," World Scientific Book Chapters, in: Anastasios G Malliaris & William T Ziemba (ed.), THE WORLD SCIENTIFIC HANDBOOK OF FUTURES MARKETS, chapter 11, pages 349-379, World Scientific Publishing Co. Pte. Ltd..
  • Handle: RePEc:wsi:wschap:9789814566926_0011

    Download full text from publisher

    File URL:
    Download Restriction: Ebook Access is only available upon purchase of title/chapter from Publisher's website.

    File URL:
    Download Restriction: Ebook Access is only available upon purchase of title/chapter from Publisher's website.

    As the access to this document is restricted, you may want to search for a different version of it.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:wschap:9789814566926_0011. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.