ICE Reports Record Trading in SONIA as the Market Manages New Expectations for U.K. Interest Rates

May 26, 2023 - Intercontinental Exchange, ICE, announced that a record 1.37 million SONIA futures and options contracts traded on May 24, 2023, as the market manages new expectations for U.K. interest rates.

On May 24, 2023, over 1 million SONIA futures traded, with high levels of activity in the June, September and December 2023 SONIA contract months.

“As the market digests the latest U.K. inflation data and reviews expectations for interest rate changes, investors are using SONIA futures and options to manage and adjust their exposure for the potential of higher interest rates to continue for longer in the U.K.,” said Caterina Caramaschi, Vice President, Financial Derivatives at ICE.

Open interest across SONIA futures and options is 2.6 million contracts, up 28% since the start of the year, with open interest out to December 2028.

SONIA is one part of ICE’s leading European interest rates franchise, offering customers the most liquid markets to trade U.K. and European interest rate futures and options, including the European interest rate benchmark Euribor and the Long Gilt benchmark for U.K. government bond yields. Open interest in ICE’s interest rate franchise is up 14% this year at 18.7 million contracts, including open interest up 11% in Euribor at 15.2 million, and up 50% in Gilts at 584,000 contracts.