Trading Volume in Euribor Hits 10-Year High on ICE

Wednesday, 05/04/2023 | 15:56 GMT by Solomon Oladipupo
  • Options and futures trading last peaked on ICE in January 2013.
  • CME Group also reported the second-highest March and quarterly ADV.
Intercontinental Exchange (ICE)

Options and futures trading on the Euro Interbank Offer Rate (Euribor) peaked at its highest in 10 years, the Intercontinental Exchange (ICE) said on Wednesday. A record 49.5 million Euribor futures and options contracts were traded in March 2023, according to the exchange and clearinghouse operator.

Trading in Euribor Reaches New Peak

According to the ICE, the March volume is the highest number of derivatives contracts that have been traded since January 2013. In addition, ICE said Euribor futures hit a peak average daily volume (ADV) of 1.75 million contracts last month.

Euribor is the reference rate used by banks in the eurozone to offer short-term euro-denominated loans at the interbank market. ICE says it offers its customers access to the most liquid European interest rate futures and options market using Euribor.

“The depth of Euribor liquidity, and its diversity in terms of its participant base globally, has enabled our customers to manage an uncertain path for European interest rates during the recent volatility,” Caterina Caramaschi, the Vice President of Financial Derivatives at ICE, explained.

According to ICE, open interest in Euribor has risen 6% since the start of the year, reaching 14.56 million so far. On the other hand, open interest in the Sterling Overnight Index Average (SONIA) has increased by 8% to 2.25 million.

SONIA is the overnight interest rate at which banks in the British sterling market secure overnight loans during off-market hours. It is used for managing UK interest rate risks.

CME Sees Second-Highest March and Quarterly ADV

Meanwhile, on Tuesday, the Chicago Mercantile Exchange (CME) Group reported its second-highest March and quarterly ADV. Finance Magnates reported that the performance was pushed by ADV increases in interest rate, options, equity index and cryptocurrency derivatives.

The top derivatives marketplace said the average daily volume of derivatives contracts traded on its platform grew 24% to 30.3 million last month. On top of that, the exchange’s first quarter 2023 ADV rose 4% to 26.9 million contacts.

BUS offers interest; FINRA warns against phishing; read today's news nuggets.

Options and futures trading on the Euro Interbank Offer Rate (Euribor) peaked at its highest in 10 years, the Intercontinental Exchange (ICE) said on Wednesday. A record 49.5 million Euribor futures and options contracts were traded in March 2023, according to the exchange and clearinghouse operator.

Trading in Euribor Reaches New Peak

According to the ICE, the March volume is the highest number of derivatives contracts that have been traded since January 2013. In addition, ICE said Euribor futures hit a peak average daily volume (ADV) of 1.75 million contracts last month.

Euribor is the reference rate used by banks in the eurozone to offer short-term euro-denominated loans at the interbank market. ICE says it offers its customers access to the most liquid European interest rate futures and options market using Euribor.

“The depth of Euribor liquidity, and its diversity in terms of its participant base globally, has enabled our customers to manage an uncertain path for European interest rates during the recent volatility,” Caterina Caramaschi, the Vice President of Financial Derivatives at ICE, explained.

According to ICE, open interest in Euribor has risen 6% since the start of the year, reaching 14.56 million so far. On the other hand, open interest in the Sterling Overnight Index Average (SONIA) has increased by 8% to 2.25 million.

SONIA is the overnight interest rate at which banks in the British sterling market secure overnight loans during off-market hours. It is used for managing UK interest rate risks.

CME Sees Second-Highest March and Quarterly ADV

Meanwhile, on Tuesday, the Chicago Mercantile Exchange (CME) Group reported its second-highest March and quarterly ADV. Finance Magnates reported that the performance was pushed by ADV increases in interest rate, options, equity index and cryptocurrency derivatives.

The top derivatives marketplace said the average daily volume of derivatives contracts traded on its platform grew 24% to 30.3 million last month. On top of that, the exchange’s first quarter 2023 ADV rose 4% to 26.9 million contacts.

BUS offers interest; FINRA warns against phishing; read today's news nuggets.

About the Author: Solomon Oladipupo
Solomon Oladipupo
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About the Author: Solomon Oladipupo
Solomon Oladipupo is a journalist and editor from Nigeria that covers the tech, FX, fintech and cryptocurrency industries. He is a former assistant editor at AgroNigeria Magazine where he covered the agribusiness industry. Solomon holds a first-class degree in Journalism & Mass Communication from the University of Lagos where he graduated top of his class.
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