ICE Launches Long European Union Bond Index Futures
Intercontinental Exchange (NYSE:ICE) has launched Long European Union (EU) Bond Index futures, with the first trades already executed. The cash-settled futures contract references the ICE 8-13 Year European Union Index (G0EU8T13), tracking long-term EU debt performance.
The Index, produced by ICE Data Indices, includes securities with remaining maturity between 8 and 13 years. This innovative product aims to provide efficient exposure management to EU sovereign bonds and is designed to attract a larger pool of liquidity through its equity-style, index-based, cash-settled structure.
The contract trades alongside ICE's European interest rate markets, including Euribor, €STR, SONIA, and SARON benchmarks. ICE's interest rate derivatives complex has seen over 20% year-over-year growth in open interest.
Intercontinental Exchange (NYSE:ICE) ha lanciato i futures sul Long European Union (EU) Bond Index, con i primi scambi già effettuati. Il contratto futures, con regolamento in contante, fa riferimento all'ICE 8-13 Year European Union Index (G0EU8T13), tracciando la performance del debito a lungo termine dell'UE.
L'Indice, prodotto da ICE Data Indices, include titoli con una scadenza residua compresa tra 8 e 13 anni. Questo prodotto innovativo mira a fornire una gestione efficiente dell'esposizione ai bond sovrani dell'UE ed è progettato per attrarre un maggior afflusso di liquidità grazie alla sua struttura in stile azionario, basata su indici e con regolamento in contante.
Il contratto viene scambiato insieme ai mercati dei tassi d'interesse europei di ICE, inclusi Euribor, €STR, SONIA e i benchmark SARON. Il complesso dei derivati sui tassi d'interesse di ICE ha registrato una crescita di oltre il 20% anno dopo anno nell'apertura degli interessi.
Intercontinental Exchange (NYSE:ICE) ha lanzado futuros sobre el Long European Union (EU) Bond Index, con las primeras operaciones ya ejecutadas. El contrato de futuros, liquidado en efectivo, hace referencia al ICE 8-13 Year European Union Index (G0EU8T13), que sigue el rendimiento de la deuda a largo plazo de la UE.
El Índice, producido por ICE Data Indices, incluye valores con un vencimiento restante entre 8 y 13 años. Este producto innovador tiene como objetivo proporcionar una gestión eficiente de la exposición a los bonos soberanos de la UE y está diseñado para atraer un mayor flujo de liquidez a través de su estructura de estilo accionario, basada en índices y liquidada en efectivo.
El contrato se negocia junto a los mercados de tasas de interés europeos de ICE, incluidos los benchmarks Euribor, €STR, SONIA y SARON. El complejo de derivados de tasas de interés de ICE ha visto un crecimiento de más del 20% interanual en el interés abierto.
인터컨티넨탈 익스체인지 (NYSE:ICE)가 롱 유럽연합(EU) 본드 인덱스 선물을 출시하였으며, 첫 거래가 이미 진행되었습니다. 현금 정산되는 이 선물 계약은 ICE 8-13 Year European Union Index (G0EU8T13)을 참조하며, 장기 EU 채무 성과를 추적합니다.
ICE 데이터 인덱스에서 생산한 이 지수는 8년에서 13년 사이의 잔여 만기를 가진 증권을 포함합니다. 이 혁신적인 제품은 EU 국가 채권에 대한 효율적인 노출 관리 제공을 목표로 하며, 주식 스타일의 인덱스 기반 현금 정산 구조를 통해 더 큰 유동성 풀을 유치하도록 설계되었습니다.
이 계약은 유로리보(Euribor), €STR, SONIA 및 SARON 벤치마크를 포함한 ICE의 유럽 금리 시장과 함께 거래됩니다. ICE의 금리 파생상품 복합체는 오픈 이자에서 연간 20% 이상의 성장을 보였습니다.
Intercontinental Exchange (NYSE:ICE) a lancé des contrats à terme sur le Long European Union (EU) Bond Index, avec les premières transactions déjà réalisées. Le contrat à terme réglé en espèces fait référence à l'ICE 8-13 Year European Union Index (G0EU8T13), qui suit la performance de la dette à long terme de l'UE.
L'Indice, produit par ICE Data Indices, comprend des titres avec une durée résiduelle comprise entre 8 et 13 ans. Ce produit innovant vise à fournir une gestion efficace de l'exposition aux obligations souveraines de l'UE et est conçu pour attirer un plus grand afflux de liquidités grâce à sa structure de style action, basée sur des indices et réglée en espèces.
Le contrat est négocié aux côtés des marchés des taux d'intérêt européens d'ICE, y compris les benchmarks Euribor, €STR, SONIA et SARON. Le complexe des dérivés de taux d'intérêt d'ICE a enregistré une croissance de plus de 20 % d'une année sur l'autre en termes d'intérêts ouverts.
Intercontinental Exchange (NYSE:ICE) hat Terminkontrakte auf den Long European Union (EU) Bond Index eingeführt, wobei bereits die ersten Handelsgeschäfte ausgeführt wurden. Der cashsettled Futures-Kontrakt bezieht sich auf den ICE 8-13 Year European Union Index (G0EU8T13), der die Performance von langfristigen EU-Schulden verfolgt.
Der von ICE Data Indices produzierte Index umfasst Wertpapiere mit einer verbleibenden Laufzeit von 8 bis 13 Jahren. Dieses innovative Produkt zielt darauf ab, eine effiziente Expositionsverwaltung gegenüber EU-Staatsanleihen zu bieten, und ist darauf ausgelegt, einen größeren Pool an Liquidität durch seine aktionärsähnliche, indexbasierte und cashsettled Struktur zu gewinnen.
Der Vertrag wird zusammen mit den europäischen Zinsmärkten von ICE gehandelt, einschließlich der Benchmarks Euribor, €STR, SONIA und SARON. Der Komplex der Zinsderivate von ICE hat im vergangenen Jahr ein Wachstum von über 20% beim offenen Interesse verzeichnet.
- Launch of new financial product expanding ICE's derivatives offering
- 20% year-over-year growth in open interest across ICE's interest rate derivatives complex
- None.
Insights
The launch of Long EU Bond Index futures represents a significant development in European fixed income markets. This cash-settled instrument fills a important gap by providing a dedicated hedging tool for the growing EU debt market. The 8-13 year maturity focus is particularly strategic, targeting a sweet spot in terms of duration risk and market liquidity.
The timing is opportune given the ongoing debate about EU bonds' exclusion from sovereign indices. This product could drive increased institutional participation in EU debt markets, potentially enhancing liquidity and price discovery. The 20% year-over-year growth in ICE's interest rate derivatives open interest suggests strong market appetite for such instruments.
The cash settlement feature and index-based approach lower barriers to entry compared to physically-settled alternatives, which could attract a broader participant base including systematic traders and asset managers who might have previously faced operational constraints.
ICE's strategic positioning of this product alongside major rate derivatives like Euribor, €STR, SONIA and SARON creates a comprehensive European rates ecosystem. This integration is important for market participants seeking efficient portfolio management and cross-market trading opportunities.
The index's construction by ICE Data Indices, a recognized third-country benchmark administrator, provides regulatory certainty and operational reliability. The volatility profile matching other European bond futures should make risk management and margin calculations more straightforward for existing market participants.
The early engagement of significant market players like ExodusPoint signals potential strong adoption. This product could become increasingly important as the EU continues to issue debt to fund initiatives like NextGenerationEU.
Futures Reference ICE 8-13 Year European Union Index
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
The Index is produced by ICE Data Indices (IDI), a recognized third country benchmark administrator under the
“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,
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
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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
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Source: Intercontinental Exchange
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Source: Intercontinental Exchange
FAQ
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