04.30.2018

CurveGlobal Launches Three Month SONIA Future

London Stock Exchange Group today welcomed CurveGlobal for the launch of the CurveGlobal® Three month SONIA Future contract.

The CurveGlobal Three month SONIA Future – the first of its kind – is based on the new overnight reference rate for sterling derivative contracts, calculated and published by the Bank of England.

CurveGlobal is also introducing the Inter Commodity Spread (ICS) between the CurveGlobal Three month SONIA Future and Three month Sterling Future. This allows participants to trade against orders that can be implied from combinations of orders resting in outright markets and/or orders resting in the strategy markets, and enables cross-market trading with no legging risk.

Andy Ross, CurveGlobal CEO, commented: “With the launch of the CurveGlobal Three month SONIA Future, we’re helping to make the transition of sterling portfolios to the new SONIA benchmark as smooth and simple as possible. Our clients will now be able to trade more efficiently and cheaply, using accurate, transaction-driven pricing; hedge their positions more easily; and benefit from reduced margin payments.”

CurveGlobal is an interest rate derivatives venture between London Stock Exchange Group, a number of leading dealer banks and the Cboe. It was established to develop a competitive offering via London Stock Exchange plc’s derivatives market (LSEDM), which has Recognised Investment Exchange status in the interest rate futures market, delivering lower transaction costs and capital efficiencies to market participants.

The “SONIA” mark is used under licence from the Bank of England (the benchmark administrator of SONIA), and the use of such mark does not imply or express any approval or endorsement by the Bank of England. “Bank of England” and “SONIA” are registered trademarks of the Bank of England.

Source: London Stock Exchange Group

Related articles

  1. 2021 marked the fourth consecutive year of record-setting trading activity.

  2. Outlook 2016: Alexander Lehmann, LSEG

    LCH SwapAgent registered over 10,000 trades in 2021, a five fold increase.

  3. There is growing interest in actionable insights into market data.

  4. The next focal point of the crypto market will be over-the-counter derivatives.

  5. Overall trading volumes across all products fell 8% from 2020.