Derivatives trading on the GBP Overnight Average (SONIA) hit a new high of 1.37m futures and options contracts on May 24, International Exchange (ICE) He said Friday. Sonya is a benchmark interest rate for short-term unsecured lending in the UK.
New record It surpasses the previous peak 1.147 million contracts of Sonya futures and options were traded on February 2, 2023.
ICE, a global exchange and clearinghouse operator, explained that the new peak performance relied on adjustments made by investors adjusting their exposure to the benchmark “for the likelihood that higher interest rates will last longer in the UK.” The change in exposure is a reaction to the latest UK inflation data which made investors revise their expectations for interest rate changes.
ICE explained that “on May 24, 2023, more than 1 million SONIA futures contracts were traded, with high levels of activity in the Sonya contract months of June, September and December 2023.” “Open interest across SONIA futures and options is 2.6 million contracts, up 28% year-to-date, with interest open through December 2028.”
SONIA Trading is past its February highs
The previous record trading in Sonya futures and options achieved on Feb. 2 was paid Investors return to UK markets. ICE explained that it “reflects the return of investor confidence in the UK interest rate markets after the impact of the scaled budget in 2022.”
Under the old record, ICE registered a record 979,561 SONIA contracts, which was a 19% increase over the previous record.
“As a benchmark for pricing and managing interest rate risk in the UK, the Sonya futures and options markets benefit from measures taken last year to enhance liquidity,” Chris Rhodes, Head of ICE Futures Europe, previously explained. “The record volumes, together with the growth in Euribor volumes over the past year, are creating an exciting European price environment for traders.”
Meanwhile, options and futures trading on the Euro Interbank Bid Rate (Euribor) recently reached a 10-year high with 49.5 million contracts traded in March 2023. Euribor is the reference rate used by banks in the eurozone to offer euros short. Term loans to value in the interbank market.
Derivatives trading on the GBP Overnight Average (SONIA) hit a new high of 1.37m futures and options contracts on May 24, International Exchange (ICE) He said Friday. Sonya is a benchmark interest rate for short-term unsecured lending in the UK.
New record It surpasses the previous peak 1.147 million contracts of Sonya futures and options were traded on February 2, 2023.
ICE, a global exchange and clearinghouse operator, explained that the new peak performance relied on adjustments made by investors adjusting their exposure to the benchmark “for the likelihood that higher interest rates will last longer in the UK.” The change in exposure is a reaction to the latest UK inflation data which made investors revise their expectations for interest rate changes.
ICE explained that “on May 24, 2023, more than 1 million SONIA futures contracts were traded, with high levels of activity in the Sonya contract months of June, September and December 2023.” “Open interest across SONIA futures and options is 2.6 million contracts, up 28% year-to-date, with interest open through December 2028.”
SONIA Trading is past its February highs
The previous record trading in Sonya futures and options achieved on Feb. 2 was paid Investors return to UK markets. ICE explained that it “reflects the return of investor confidence in the UK interest rate markets after the impact of the scaled budget in 2022.”
Under the old record, ICE registered a record 979,561 SONIA contracts, which was a 19% increase over the previous record.
“As a benchmark for pricing and managing interest rate risk in the UK, the Sonya futures and options markets benefit from measures taken last year to enhance liquidity,” Chris Rhodes, Head of ICE Futures Europe, previously explained. “The record volumes, together with the growth in Euribor volumes over the past year, are creating an exciting European price environment for traders.”
Meanwhile, options and futures trading on the Euro Interbank Bid Rate (Euribor) recently reached a 10-year high with 49.5 million contracts traded in March 2023. Euribor is the reference rate used by banks in the eurozone to offer euros short. Term loans to value in the interbank market.