ICE SONIA hits record volume as investors manage UK interest rate risk | Business
LONDON–(BUSINESS WIRE)–February 7, 2022–
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of market data, technology and infrastructure, today announced that futures and options on the ICE SONIA Index, the benchmark contract to manage sterling interest rate risk hit a record single-day volume of 916,964 contracts on February 3, the day the Bank of England’s Monetary Policy Committee voted to raise UK interest rates from 0.25% to 0.5%.
SONIA’s volume record is up 13% from the previous record set on September 16, 2021.
ICE Euribor futures and options, the benchmark contract for managing euro-denominated interest rate risk, saw a total of 3,857,686 contracts traded on February 3, marking the highest trading day in 2022 to date for the contract. SARON futures, the Swiss franc (CHF) interest rate risk management contract, also reached a record volume of 29,278 lots on February 3.
“The Bank of England’s announcement led to the first real change in expectations for sterling interest rates this year and resulted in SONIA’s busiest day on record,” said Chief Executive Steven Hamilton. world of financial derivatives at ICE. “As evidenced by the strong volumes of Euribor, interest rate risk and its close correlation to inflation are issues that our clients actively manage using our liquid derivatives markets.”
As of February 3, open interest on Euribor futures and options was 13.1 million contracts, up 71% year-on-year, with open interest of 7.15 million on SONIA futures and options contracts and an open interest of 170,532 on SARON futures contracts.
In December 2021, ICE transferred all open interest held in its three-month LIBOR-based pound sterling futures and options and three-month euro Swiss franc (eurosuisse) futures contracts into their equivalent interest-rate contracts. risk-free, three-month SONIA and three-month SARON index futures and options. Index futures. Two three-month British Pound futures contracts were converted into a three-month SONIA index futures contract with the same delivery month, showing that a SONIA futures contract is twice the notional value of a British Pound futures contract, while the conversion of three-month Euroswiss positions into SARON was straightforward for a conversion.
About intercontinental exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks to connect people to opportunity. We provide financial technology and data services across major asset classes that provide our clients with access to critical workflow tools that increase transparency and operational efficiency. We operate Exchangesincluding the New York Stock Exchangeand clearing houses that help people invest, raise capital and manage risk across multiple asset classes. Our comprehensive fixed income securities data services and execution capabilities provide insights, analytics and platforms that help our clients take advantage of opportunities and operate more effectively. AT ICE Mortgage Technology, we are transforming and digitizing the residential mortgage process in the United States, from consumer engagement to loan registration. Together, we transform, streamline and automate industries to connect our customers to opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates can be found here. Key information documents for certain products covered by the EU Regulation on packaged retail and insurance-based investment products can be accessed on the website of the relevant exchange under the heading “Information Documents keys (KIDS)”.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 — Statements in this press release regarding ICE’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ materially from those contained in the forward-looking statements, see ICE’s filings with the Securities and Exchange Commission (SEC), including, but not Limit thereto, the risk factors in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the SEC on February 3, 2022.
Source: Intercontinental Exchange
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KEYWORD: UNITED KINGDOM EUROPE
SECTOR KEYWORD: BANKING PROFESSIONAL SERVICES FINANCE
SOURCE: Intercontinental Exchange
Copyright BusinessWire 2022.
PUBLISHED: 02/07/2022 08:00 AM/DISC: 02/07/2022 08:02 AM
Copyright BusinessWire 2022.