ICE’s €STR Futures Open Interest Exceeds 500,000 Contracts

Published 3 months ago via 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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