CHICAGO and LONDON, Aug. 22,
2018 /PRNewswire/ -- CME Group, the world's leading and most
diverse derivatives marketplace, will launch Sterling Overnight
Index Average (SONIA) futures on October 1,
2018, pending regulatory review.
CME Group will launch two new SONIA futures: a quarterly
International Monetary Market (IMM) dated contract observing the
recommended specifications of the Working Group on Sterling Risk
Free Reference Rates; and a Bank of England Monetary Policy
Committee (MPC) meeting dated contract. The MPC SONIA future is
designed to meet the needs of market participants who require
greater precision in managing exposure between the dates of the MPC
meetings.
"Adding SONIA to our robust suite of futures provides clients a
choice for how best to manage interest rate risk in their
portfolios," said Agha Mirza, CME
Group Global Head of Interest Rate Products. "Customers have
told us that they value the unparalleled global distribution of CME
Globex, the financial safeguards of CME Clearing, and our focus on
client service."
CME Group has been involved for several years in the global
effort to incorporate alternative reference rates as risk
management tools and launched the first transaction-based, US
dollar interest rate SOFR futures in May 2018. In the three
months since launch, SOFR total volume has exceeded 200,000
contracts and has included 70 global market participants. Open
interest has grown steadily to more than 27,000 contracts.
CME SONIA futures complement CME Group's successful push into
international fixed income markets through OTC Clearing. 24
currencies are supported for interest rate swap clearing. CME has a
leading presence in several key emerging markets. Global customers
benefit from the margin and capital efficiencies that these
products provide.
CME SONIA futures will be listed by and subject to the rules of
CME. Margin offsets against other short-term interest rate futures
will be available at launch. Contract specifications and further
information is available at cmegroup.com/sonia.
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) is where the world comes to manage
risk. CME Group exchanges offer the widest range of global
benchmark products across all major asset classes, including
futures and options based on interest rates, equity
indexes, foreign exchange, energy, agricultural
products and metals. Around the world, CME Group
brings buyers and sellers together through its CME Globex®
electronic trading platform. CME Group also operates one of
the world's leading central counterparty clearing providers
through CME Clearing, which offers clearing and settlement
services across asset classes for exchange-traded and
over-the-counter derivatives. CME Group products and services
ensure that businesses around the world can effectively manage risk
and achieve growth.
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