QuantConnect / QuantConnect/Lean

Support SOFR Futures

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feature
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C#
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Description

Expected Behavior

QuantConnect/Lean supports Secured Overnight Financing Rate (SOFR) Futures. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities. CME SOFR futures are the leading source of SOFR price discovery, trading alongside deeply liquid Eurodollar, Fed Fund and Treasury futures to offer seamless spread trading and unmatched capital efficiencies through margin offsets.

GLOBEX PRODUCT NAME EXCHANGE SUBGROUP VOLUME OPEN INTEREST
SR3 Options on Three-Month SOFR Futures CME Stirs 1,488,655 20,538,540
SR3 Three-Month SOFR Futures CME Stirs 2,622,845 8,819,841
S0 One-Year Mid-Curve Options on Three-Month SOFR Futures CME Stirs 314,397 2,894,808
S2 Two-Year Mid-Curve Options on Three-Month SOFR Futures CME Stirs 54,722 838,054
SR1 One-Month SOFR Futures CME Stirs 92,787 650,298
S3 Three-Year Mid-Curve Options on Three-Month SOFR Futures CME Stirs 20,600 508,594
Actual Behavior

QuantConnect/Lean does not support SOFR Futures, and USD LIBOR scheduled to cease to be provided or representative from end-June 2023:
Transitioning from Eurodollar futures and options to SOFR - FAQ

Potential Solution

Add SOFT to Lean database.

Checklist
  • I have completely filled out this template
  • I have confirmed that this issue exists on the current master branch
  • I have confirmed that this is not a duplicate issue by searching issues
  • I have provided detailed steps to reproduce the issue

Contributor guide

Open the contributing guide

First steps

  1. Read the whole issue, then the project's contributing guide.
  2. Comment on the issue to say you are picking it up — it saves two people doing the same work.
  3. Fork the repository and make your change on a branch.
  4. Open a pull request that references the issue number.

Research direction

The issue requests adding SOFT to the Lean database and links the relevant CME SOFR products, but names no implementation file or test. Start by locating existing futures definitions and their coverage tests, then compare the SOFR symbols and contracts with the CME references. Done means supported SOFR futures are represented and covered by the relevant tests.

Written by the indexing model from the issue text.

Assessment

Tech stack
csharp
Domain
fintech-quant
Issue type
Feature
Difficulty
4/5
Estimated time
3-5 days
Activity status
Stale
Clarity
Mostly clear
Newbie friendliness
35/100

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