CME Group to Launch SONIA Interest Rate Futures

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CME Group to Launch SONIA Interest Rate Futures

August 26, 2018

CME Group LogoCHICAGO and LONDONAug. 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.

Agha Mirza
Agha Mirza

“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 ratesequity indexesforeign exchangeenergyagricultural 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.

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex and E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc.  Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor’s Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc.  All other trademarks are the property of their respective owners.

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