Geopolitics continue to fuel volatility in fixed income markets, with August average daily volume (“ADV”) reaching 2.2 million contracts, up 12.4% year-on-year.
Ongoing Brexit uncertainty continues to influence the short end of the Sterling curve. Investors are turning to ICE markets to manage their risk exposure, which continues to push higher open interest (“OI”) in Short Sterling. During the month, futures hit an all-time record of 4.5 million and August 30 saw the highest OI in the Short Sterling complex of 14.8 million futures and options.
Building on the existing Sterling offering, inter-contract spreads in Gilt futures will be launching in Q4 2019. This will promote the further development of the UK sovereign curve, providing new trading opportunities and efficiency. For more information, read Circular 19/128.
Fixed Income finished July with Open Interest (OI) of 28.8 million contracts, +9% YOY.