August 2020 Highlights
Activity continues to normalise around the world, but increase in COVID-19 cases and concerns over a second wave weighed on market sentiment. Risk assets were boosted by policy response, with business confidence registering moderate rebound.
In Fixed Income, benchmark reform and the transition to alternative risk-free rates (RFRs) remains the key theme. Transition timetables for LIBOR are largely being set by the FCA and the Federal Reserve through their respective financial industry led transition teams - the UK Working Group on Sterling Risk Free Rates and the US Alternative Reference Rate Committee. The development of RFR based futures and options, with the intention to create the broadest multi-currency product suite, is therefore leading our Exchange business development efforts.
Fixed Income finished the month with Average Daily Volume (ADV) of 1.5 million contracts and Open Interest (OI) of 23.6 million contracts.