ICE Launches Long European Union Bond Index Futures
December 10 2024 - 6:00AM
Business Wire
Futures Reference ICE 8-13 Year European Union
Index
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global
provider of technology and data today announced the launch of Long
European Union (EU) Bond Index futures along with the first trades
in the contract.
The cash-settled futures contract references the ICE 8-13 Year
European Union Index (Ticker: G0EU8T13) which tracks the
performance of long-term debt issued by the EU.
“This innovative product provides a much-needed solution for
managing exposure to EU sovereign bonds efficiently,” said Mirco
Bulega, Partner at ExodusPoint Capital Management U.K. “We are
pleased to see ICE leading the way in bringing such tools to
market.”
The Index is produced by ICE Data Indices (IDI), a recognized
third country benchmark administrator under the U.K. Benchmarks
Regulation. The ICE 8-13 Year European Union Index is a subset of
the ICE European Union Index, including all securities with a
remaining term to final maturity greater than or equal to 8 years
and less than 13 years. The Index tracks exposure to a specific
point on the EU curve and the historical volatility of the Index is
similar to other European Bond futures.
“Harmonized EU debt is an emerging space and as it scales,
market participants need a futures hedging tool to help them manage
risk,” said Caterina Caramaschi, Vice President, Financial
Derivatives at ICE. “By introducing an equity-style index-based
instrument that is cash-settled, ICE is opening up EU debt to a
potentially larger pool of liquidity.”
“With the interest and debate around the status of European
Union bonds not being included in sovereign bond indices, we saw
that customers wanted a way to invest in, and manage, exposure to
EU debt,” said Varun Pawar, Chief Product Officer of ICE Fixed
Income and Data Services. “By leveraging ICE’s leading fixed income
pricing and reference data, IDI’s index construction capabilities,
and ICE’s global futures team, we have created a product that
allows customers to manage this risk, demonstrating the product
innovation we can bring to customers across global financial
markets.”
The contract is available to trade and clear alongside ICE’s
deeply liquid, multi-currency European, U.K. and Swiss interest
rate markets, including benchmarks Euribor, €STR, SONIA and SARON
as well as Gilts, the benchmark for the U.K. government bond yield
curve. Open interest is up over 20% year-over-year across ICE’s
interest rate derivatives complex.
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.
ICE Data Indices, LLC (“IDI”), its affiliates and its third
party suppliers make no representations or warranties regarding the
advisability of investing in securities generally, in any financial
product or the ability of any index to track general market
performance. Past performance of an index is not an indicator of or
a guarantee of future results. For important information (including
the methodologies), limitations, and disclaimers regarding the
indices, please visit indices.ice.com.
Category: EXCHANGES
ICE-CORP
Source: Intercontinental Exchange
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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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