The global economy continues to grapple with COVID-19. However, the rapid rollout of vaccinations in the U.K. and U.S., and more recently Europe, has buoyed market sentiment, where investors are looking ahead to a sustained reopening of their economies.
While policy across these jurisdictions is set to remain ultra-accommodative for a long time, the ICE Fixed Income franchise performed well against this backdrop of improved economic outlook. The shift in expectations drove activity in the EURIBOR complex in particular, with options Average Daily Volume (ADV) of 176,000 the highest in almost a year. The benchmark reform process is also progressing decisively and as a result, more users are starting to engage with RFR products. SONIA Options were the last product to be added to the suite last December, with recent weeks seeing the complex start to gain traction. To support market participants as they prepare for benchmark reform, we recently held a webinar to provide an update on the transition and highlight tools available to manage the shift. Access the replay.
ICE Fixed Income finished the month with ADV of 1.7 million contracts. Open Interest (OI) in the complex was 30.3 million contracts, +33% YoY.