Cboe IBHY Futures Set All-Time Monthly Volume Record, Surpassing $5 Billion Total Monthly Notional Value Traded for First Time
Cboe Global Markets announced that trading volume in Cboe iBoxx iShares High Yield Corporate Bond Index futures reached a record high in July 2021, surpassing $5 billion in total notional value. With 39,919 contracts traded, this represents a 52% increase from the previous month. Michael Mollet, VP of Futures at Cboe, highlighted the liquidity and increasing volume in IBHY futures as key indicators of their growing importance for investors. The IBHY futures, cash-settled and based on USD-denominated high yield corporate debt, provide an efficient tool for managing credit risk.
- Trading volume in IBHY futures reached an all-time high in July 2021, surpassing $5 billion.
- 39,919 contracts were traded in July 2021, reflecting a 52% increase from June 2021.
- Increasing liquidity in IBHY futures indicates growing investor interest and market utility.
- None.
CHICAGO, Aug. 4, 2021 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced that trading volume in Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index (Ticker: IBHY) futures reached an all-time monthly high in July 2021 and surpassed
"IBHY futures offer an exchange-traded, centrally cleared tool to help investors mitigate credit risk, efficiently allocate capital to the corporate bond market and implement trading strategies in a convenient, standardized vehicle," said Michael Mollet, Vice President, Futures at Cboe Global Markets. "We believe the building liquidity and steady volume increases in IBHY futures this year are testament to their potential utility as an increasingly important tool for fixed-income investors seeking to tailor their exposure to the corporate bond market."
IBHY futures are cash-settled futures based on IHS Markit's iBoxx® iShares® $ High Yield Corporate Bond Index (IBXXIBHY Index), which is designed to reflect the performance of USD denominated high yield corporate debt and offers broad coverage of the USD high yield liquid bond universe.
In addition to IBHY futures, Cboe Futures Exchange (CFE) offers trading in Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index (Ticker: IBIG) futures. Based on IHS Markit's iBoxx® iShares® $ Investment Grade Corporate Bond Index (IBXXIBIG Index), IBIG futures help allow investors to implement investment-grade fixed-income trading strategies in a convenient, standardized vehicle.
IBHY and IBIG futures launched on Cboe Futures Exchange in the fall of 2018. For additional information on CFE's IBHY and IBIG futures, including contract specifications, product fact sheets and daily market statistics, visit: www.cboe.com/iboxx.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE), a leading provider of market infrastructure and tradable products, delivers cutting-edge trading, clearing and investment solutions to market participants around the world. The company is committed to operating a trusted, inclusive global marketplace, providing leading products, technology and data solutions that enable participants to define a sustainable financial future. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives and FX, across North America, Europe and Asia Pacific. To learn more, visit www.cboe.com.
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Futures trading is not suitable for all investors and involves the risk of loss. That risk of loss can be substantial and can exceed the amount of money deposited for a futures position. You should, therefore, carefully consider whether futures trading is suitable for you in light of your circumstances and financial resources. You should put at risk only funds that you can afford to lose without affecting your lifestyle. For additional information regarding futures trading risks, see the Risk Disclosure Statement set forth in Appendix A to CFTC Regulation 1.55(c) and the Risk Disclosure Statement for Security Futures Contracts.
The iBoxx® iShares® $ High Yield Corporate Bond Index and the iBoxx® iShares® $ Investment Grade Corporate Bond Index (the "Indexes") referenced herein are the property of Markit Indices Limited ("Index Sponsor") and have been licensed for use in connection with Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index Futures and Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index Futures. Each party to a Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index Futures or Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index Futures transaction acknowledges and agrees that the transaction is not sponsored, endorsed or promoted by the Index Sponsor. The Index Sponsor makes no representation whatsoever, whether express or implied, and hereby expressly disclaims all warranties (including, without limitation, those of merchantability or fitness for a particular purpose or use), with respect to the Indexes or any data included therein or relating thereto, and in particular disclaims any warranty either as to the quality, accuracy and/or completeness of the Indexes or any data included therein, the results obtained from the use of the Indexes and/or the composition of the Indexes at any particular time on any particular date or otherwise and/or the creditworthiness of any entity, or the likelihood of the occurrence of a credit event or similar event (however defined) with respect to an obligation, in the Indexes at any particular time on any particular date or otherwise. The Index Sponsor shall not be liable (whether in negligence or otherwise) to the parties or any other person for any error in the Indexes, and the Index Sponsor is under no obligation to advise the parties or any person of any error therein.
The Index Sponsor makes no representation whatsoever, whether express or implied, as to the advisability of purchasing or selling Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index Futures and Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index Futures, the ability of the Indexes to track relevant markets' performances, or otherwise relating to the Indexes or any transaction or product with respect thereto, or of assuming any risks in connection therewith. The Index Sponsor has no obligation to take the needs of any party into consideration in determining, composing or calculating the Indexes. No party purchasing or selling Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index Futures or Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index Futures, nor the Index Sponsor, shall have any liability to any party for any act or failure to act by the Index Sponsor in connection with the determination, adjustment, calculation or maintenance of the Indexes. iBoxx® is a service mark of IHS Markit Limited.
The iBoxx® iShares® $ High Yield Corporate Bond Index and the iBoxx® iShares® $ Investment Grade Corporate Bond Index (the "Indexes") and futures contracts on the Indexes ("Contracts") are not sponsored by, or sold by BlackRock, Inc. or any of its affiliates (collectively, " BlackRock"). BlackRock makes no representation or warranty, express or implied to any person regarding the advisability of investing in securities, generally, or in the Contracts in particular. Nor does BlackRock make any representation or warranty as to the ability of the Index to track the performance of the fixed income securities market, generally, or the performance of HYG, LQD or any subset of fixed income securities.
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SOURCE Cboe Global Markets, Inc.
