May 2020 Highlights
COVID-19 continued to dominate the headlines and as economies around the world moved towards a gradual and cautious reopening, positive sentiment buoyed markets.
In the UK, the Bank of England opened the door to the possibility of adopting negative interest rates in the future, as part of measures to aid economic recovery from the considerable initial blow suffered due to the pandemic. UK Government yields continued to fall and went below zero for the first time. The resulting volatility was supportive of our Sterling denominated markets. Short Sterling options performed well with Average Daily Volume (ADV) of 201,000, +34% YOY, as investors turned to these markets to express market sentiment. Benchmark reform products enjoyed increased demand, with 3 Month SONIA futures posting record trading over the period.
Fixed Income finished the month with ADV of 1.6 million contracts and Open Interest (OI) of 24.3 million contracts.