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      ICE Reports Record Trading Volumes in Interest Rate Markets

      Published: just now

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      Trading in interest rate derivatives at Intercontinental Exchange (ICE) has reached record levels, with more than 190 million contracts traded in the third quarter of 2024, breaking the previous high set during the market volatility of Q1 2020.

       

      The exchange operator reported that average daily volume (ADV) hit 2.9 million contracts during the quarter, marking a 39% increase year-to-date. This surge in activity comes amid a period of significant central bank policy shifts across major economies.

       

      Particularly notable was the performance of Euribor futures and options, which saw 118 million contracts traded - the highest level since 2013. Euribor serves as the primary benchmark for managing short-term euro interest rate risk, with its futures and options showing a 28% increase in ADV this year.

       

      September proved especially active, with daily trading volumes across all interest rate products averaging 3.4 million contracts, surpassing a record that had stood since May 2010. SONIA futures, which track UK interest rate risk, reached 14 million contracts traded during the month. Open interest in SONIA futures has grown 65% compared to last year, while ADV is up 59% year-to-date.

       

      Caterina Caramaschi, Vice President, Financial Derivatives at ICE, said: "The record trading activity reflects customers utilising ICE as the only exchange globally to offer a diverse and deeply liquid derivatives complex across European rates. As participants manage changing interest rate policy and exposure between central bank meeting dates, we are seeing heightened trading activity which is fuelling liquidity."

       

      The exchange's offering includes markets for trading interest rate benchmarks Euribor, SONIA and SARON, alongside Gilts - the benchmark for UK government bond yields. Gilt futures have seen particularly strong growth, with open interest up 88% year-on-year and ADV increasing 30% year-to-date.

       

      ICE has also expanded into €STR (Euro Short-Term Rate) futures and options. The newer €STR futures reached record open interest exceeding 650,600 contracts on 22 October 2024.

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