This study was initiated to examine the hedging and price discovery performance of the CD futures market. In the first part of the study, a method of evaluating the performance of anticipatory hedges was developed. This method improved upon the methods of others by attempting to account for hedgers' expectations of future spot rates;In the second part of the study, a direct test of the weak-form efficient markets hypothesis was applied to the CD futures market. Efficient markets ensure that the market is performing its price discovery function;The results of the study demonstrate that the CD futures market is adequately performing both its hedging and price discovery functions.