ICE’s €STR Futures Open Interest Exceeds 500,000 Contracts
September 13 2024 - 4:00AM
Business Wire
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global
provider technology and data, today announced that ICE’s €uro Short
Term Rate (€STR) futures hit open interest of over 500,000
contracts on September 11, 2024.
ICE’s €STR futures and options clear alongside 16.2 million lots
of open interest in Euribor, the benchmark for managing short term
euro-related interest rate risk. Open interest across ICE’s
interest rate complex is up 14% year-over-year (y/y) at over 25
million contracts.
Meanwhile average daily volume (ADV) across the interest rate
portfolio was up 55% y/y, as at the end of August 2024, including
Euribor ADV up 50%, SONIA ADV up 56% and Gilts ADV up 48%.
“The health of our €STR market is being driven by end user
demand that is benefiting from deeper liquidity available at ICE,”
said Caterina Caramaschi, Vice President, Financial Derivatives at
ICE. “We’d like to thank all of our market participants for their
continued support in developing our €STR futures and we are pleased
to see the first €STR option trade”.
“As the only exchange globally to offer liquid multi-currency
short-term interest rate products, we are committed to building
ICE’s franchise to provide even more tools for managing interest
rate risk as the market continues to develop,” continued
Caramaschi.
By trading and clearing €STR at ICE, customers can benefit from
margin offsets as high as 90% against Euribor. Euribor is the key
euro-dominated interest rate benchmark, based on the average
interest rate at which Eurozone banks offer unsecured short-term
lending to one another while €STR reflects the wholesale euro
unsecured overnight borrowing costs of banks located in the euro
area.
Customers are utilizing the inter-contract spread ICE offers for
trading the difference between Euribor and €STR, designed so market
participants have the flexibility and liquidity to transition in
and out of the contract as they do in over-the-counter markets.
ICE is home to a multi-currency interest rate derivatives
offering including Euribor, SONIA the U.K. benchmark, SARON the
Swiss benchmark and Gilts the benchmark for the U.K. government
bond yield curve. On September 11, 2024, SONIA futures hit record
open interest of 2.4 million contracts.
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune
500 company that designs, builds and operates digital networks that
connect people to opportunity. We provide financial technology and
data services across major asset classes helping our customers
access mission-critical workflow tools that increase transparency
and efficiency. ICE’s futures, equity, and options exchanges
– including the New York Stock Exchange – and clearing
houses help people invest, raise capital and manage risk. We
offer some of the world’s largest markets to trade and clear energy
and environmental products. Our fixed income, data services
and execution capabilities provide information, analytics and
platforms that help our customers streamline processes and
capitalize on opportunities. At ICE Mortgage Technology, we
are transforming U.S. housing finance, from initial consumer
engagement through loan production, closing, registration and the
long-term servicing relationship. Together, ICE transforms,
streamlines and automates 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 is located here. Key Information Documents for
certain products covered by the EU Packaged Retail and
Insurance-based Investment Products Regulation can be accessed on
the relevant exchange website under the heading “Key Information
Documents (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 from those contained in the forward-looking
statements, see ICE's Securities and Exchange Commission (SEC)
filings, including, but not limited to, the risk factors in ICE's
Annual Report on Form 10-K for the year ended December 31, 2023, as
filed with the SEC on February 8, 2024.
Category: EXCHANGES
ICE-CORP
Source: Intercontinental Exchange
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version on businesswire.com: https://www.businesswire.com/news/home/20240912306569/en/
ICE Media: Jess Tatham jess.tatham@ice.com +44
7377 947136 ICE Investor: Katia Gonzalez
katia.gonzalez@ice.com (678) 981-3882
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