03.04.2021

ICE Has Record Gilts and Sterling Rates Activity

Gilts reach record Single Day Volume of 1.91M and record ADV of more than 459,000 contracts

Intercontinental Exchange, a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listings services, announced record activity across its benchmark Gilts and Sterling rates complex as the market manages Sterling-related risk.

ICE Gilt futures and options, the highly liquid market benchmarks for UK Government Bonds, reached a Single Day Volume record of more than 1.91 million contracts and record Average Daily Volume (ADV) of more than 459,000 contracts during February.

Available in a range of maturities out to 30 years, ICE Gilt futures and options provide trading opportunities for market participants looking to hedge or gain exposure to interest rates around anticipated central bank rate changes, with the benchmark ICE Long Gilt futures used by the market to manage the intermediate term of the UK government bond yield curve.

Short Sterling futures and options, the benchmark for managing UK interest rate risk, reached record open interest of more than 20.1 million contracts on March 1, 2021. SONIA Futures and Options, the RFR-equivalent benchmark for Short Sterling, reached record ADV of more than 144,000 contracts, and sits at a record for Open Interest of more than 216,000 contracts. On February 25, SONIA had a record day for volume with more than 390,000 contracts traded.

“The growth in our GBP rates complex reflects both the depth of liquidity we offer, as well the extent of activity taking place as the market manages its exposure to Gilts and Sterling-related risk”, said Steve Hamilton, Global Head of Financial Derivatives at ICE. “ICE has seen multiple, sustained records across its GBP complex. We have continued to innovate to support the needs of our customers through LIBOR-transition, recently launching ERIS Interest Rate Futures and Three Month SARON Index Futures.”

As one of the leading venues for interest rate derivatives, ICE offers a comprehensive range of benchmark products alongside its Sterling rates complex including Euribor futures and options, SOFR futures and €STR futures.

Source: ICE

Related articles

  1. Temporary equivalence is set to expire on June 30 2022.

  2. Parsing 'Best Ex' for Options Trades

    Clients want short-dated options to hedge or trade with more flexibility around market-moving events.

  3. Margins Raised Ahead of Brexit Vote

    IRS trading volumes have fragmented without an equivalence agreement.

  4. KCG Expands in Europe with Neonet Buy

    The World Federation of Exchanges published its first-half highlights. 

  5. Foyston Practices 'All-Weather' Investing

    ICE Connect customers can see how changing weather forecasts influence live market prices.