Futures Reference ICE 8-13 Year European Union Index
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data today announced the launch of Long European Union (EU) Bond Index futures along with the first trades in the contract.
The cash-settled futures contract references the ICE 8-13 Year European Union Index (Ticker: G0EU8T13) which tracks the performance of long-term debt issued by the EU.
"This innovative product provides a much-needed solution for managing exposure to EU sovereign bonds efficiently," said Mirco Bulega, Partner at ExodusPoint Capital Management U.K. "We are pleased to see ICE leading the way in bringing such tools to market."
The Index is produced by ICE Data Indices (IDI), a recognized third country benchmark administrator under the U.K. Benchmarks Regulation. The ICE 8-13 Year European Union Index is a subset of the ICE European Union Index, including all securities with a remaining term to final maturity greater than or equal to 8 years and less than 13 years. The Index tracks exposure to a specific point on the EU curve and the historical volatility of the Index is similar to other European Bond futures.
"Harmonized EU debt is an emerging space and as it scales, market participants need a futures hedging tool to help them manage risk," said Caterina Caramaschi, Vice President, Financial Derivatives at ICE. "By introducing an equity-style index-based instrument that is cash-settled, ICE is opening up EU debt to a potentially larger pool of liquidity."
"With the interest and debate around the status of European Union bonds not being included in sovereign bond indices, we saw that customers wanted a way to invest in, and manage, exposure to EU debt," said Varun Pawar, Chief Product Officer of ICE Fixed Income and Data Services. "By leveraging ICE's leading fixed income pricing and reference data, IDI's index construction capabilities, and ICE's global futures team, we have created a product that allows customers to manage this risk, demonstrating the product innovation we can bring to customers across global financial markets."
The contract is available to trade and clear alongside ICE's deeply liquid, multi-currency European, U.K. and Swiss interest rate markets, including benchmarks Euribor, €STR, SONIA and SARON as well as Gilts, the benchmark for the U.K. government bond yield curve. Open interest is up over 20% year-over-year across ICE's interest rate derivatives complex.
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE's futures, equity, and options exchanges including the New York Stock Exchange and clearing houses help people invest, raise capital and manage risk. We offer some of the world's largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology, we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines and automates industries to connect our customers to opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading "Key Information Documents (KIDS)."
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 8, 2024.
ICE Data Indices, LLC ("IDI"), its affiliates and its third party suppliers make no representations or warranties regarding the advisability of investing in securities generally, in any financial product or the ability of any index to track general market performance. Past performance of an index is not an indicator of or a guarantee of future results. For important information (including the methodologies), limitations, and disclaimers regarding the indices, please visit indices.ice.com.
Category: EXCHANGES
ICE-CORP
Source: Intercontinental Exchange
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