An interest-rate derivative is a broad term for a derivative contract, such as a futures, option, or swap, that has an interest rate as its underlying asset.

Derivatives are financial instruments whose value is derived from one or more underlying assets or securities (e.g., a stock, bond, currency, or index).

Exchange-traded derivatives are listed on exchanges such as the CBOE Global Markets and the New York Mercantile Exchange (NYMEX), and are overseen by the Securities and Exchange Commission (SEC). 3 ...