ICE Interest Rate Markets Hit Record Trading Volumes

Rhea-AI Summary

Intercontinental Exchange (NYSE:ICE) reported record-breaking activity in its interest rate derivatives markets for Q3 2024, with over 190 million contracts traded, surpassing Q1 2020's previous record. The average daily volume (ADV) reached 2.9 million contracts, up 39% year-to-date. Notable achievements include 118 million Euribor futures and options traded, breaking the 2013 record, and SONIA futures hitting 14 million contracts with ADV up 59% YTD. The company's €STR futures reached record open interest of over 650,600 contracts on October 22, 2024.

Positive

• Record Q3 2024 trading volume with 190 million contracts
• 39% YTD increase in average daily volume to 2.9 million contracts
• Euribor futures and options trading reached 118 million contracts
• SONIA futures open interest up 65% year-over-year
• Gilts trading volume up 30% YTD with 88% year-over-year open interest increase

Negative

• None.

Insights

Financial Markets Analyst

The record-breaking trading volumes in ICE's interest rate derivatives markets signal significant market volatility and heightened hedging activity. With 190 million contracts traded in Q3 and a 39% YTD increase in average daily volume, this unprecedented activity reflects growing concerns about interest rate movements and monetary policy shifts. The substantial growth in SONIA futures (59% YTD increase in ADV) and Gilts trading (88% y/y increase in open interest) demonstrates strong institutional demand for risk management tools in a challenging rate environment. This surge in trading activity should positively impact ICE's transaction-based revenues and market data services. The expansion into €STR futures shows strategic positioning in the evolving European rates market, potentially capturing additional market share as financial institutions adapt to new benchmark rates.

Market Structure Expert

The exceptional growth across ICE's interest rate derivatives platform showcases the exchange's strategic advantage in European rates trading. The record 118 million Euribor contracts traded demonstrates ICE's dominance in euro-denominated rate products. The diversified product suite spanning Euribor, SONIA, SARON and Gilts positions ICE as a comprehensive liquidity hub for rate derivatives. The 65% y/y increase in SONIA open interest indicates growing market acceptance and deeper liquidity pools. This consolidation of liquidity across multiple rate benchmarks strengthens ICE's competitive moat and network effects, potentially leading to sustained market share gains and improved pricing power.

Euribor Futures and Options Trading at Highest Volume in Over 10 Years

LONDON--(BUSINESS WIRE)-- Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, today announced record activity across its interest rate derivatives markets with over 190 million contracts traded in Q3 2024, surpassing the previous record set in Q1 2020.

ICE’s interest rate markets also hit record average daily volume (ADV) during the quarter with 2.9 million contracts traded, up 39% year-to-date (YTD). In the past quarter, a record 118 million Euribor futures and options traded, exceeding the last high set in 2013. Euribor is the benchmark for managing short term euro-related interest rate risk. ICE Euribor futures and options ADV is up 28% this year.

During September 2024, ADV across the interest rates complex exceeded 3.4 million contracts, surpassing the previous monthly record set in May 2010. Meanwhile, SONIA futures, the benchmark for managing U.K. interest rate risk, traded a record 14 million contracts during the month, with ADV up 59% YTD and open interest up 65% year-over-year (y/y).

“The record trading activity reflects customers utilizing ICE as the only exchange globally to offer a diverse and deeply liquid derivatives complex across European rates,” said Caterina Caramaschi, Vice President, Financial Derivatives at ICE. “As participants manage changing interest rate policy and exposure between central bank meeting dates, we are seeing heightened trading activity which is fueling liquidity.”

ICE offers customers liquid, multi-currency markets to trade interest rate benchmarks Euribor, SONIA and SARON, as well as Gilts, the benchmark for the U.K. government bond yield curve, where open interest is up 88% y/y and ADV is up 30% YTD. The latest additions to ICE’s STIRs complex are €uro Short Term Rate (€STR) futures and options, with €STR futures open interest hitting a record of over 650,600 contracts on October 22, 2024.

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20241023143353/en/

ICE Media:

Jess Tatham

jess.tatham@ice.com

+44 7377 947136

ICE Investor:

Katia Gonzalez

katia.gonzalez@ice.com

(678) 981-3882

Source: Intercontinental Exchange

FAQ

What trading volume record did ICE achieve in Q3 2024?

ICE achieved a record trading volume of over 190 million contracts in its interest rate derivatives markets during Q3 2024, surpassing the previous record set in Q1 2020.

How much did ICE's Euribor futures and options trading increase in 2024?

ICE's Euribor futures and options average daily volume increased 28% year-to-date in 2024, reaching a record 118 million contracts traded in Q3.

What was ICE's SONIA futures performance in September 2024?

ICE's SONIA futures traded a record 14 million contracts in September 2024, with average daily volume up 59% year-to-date and open interest up 65% year-over-year.

What was ICE's €STR futures open interest record in October 2024?

ICE's €STR futures open interest reached a record of over 650,600 contracts on October 22, 2024.