Economic momentum showed signs of acceleration in May with encouraging data coming from the U.K., Europe and the U.S. Market sentiment was buoyed as vaccine roll-out picked up pace and restrictions on social and economic activity continued ease.
The ICE Fixed Income complex enjoyed strong performance over the period against a backdrop of improved economic outlook and the ever so slight prospect for sooner than anticipated policy tightening in some jurisdictions. All STIRs posted strong volumes with EURIBOR futures and options leading the way, with Average Daily Volume (ADV) of 700,500 and 174,000 contracts respectively, +43% and +53% YoY.
Benchmark reform efforts continue full steam ahead. Earlier in the month, the FCA and the Bank of England reiterated that market participants should cease initiation of new GBP LIBOR exchange traded derivatives from June 17, marking a key milestone on the transition roadmap. The Three Month SONIA Index futures and options franchise grew in May, reaching a record combined Open Interest (OI) of 313,102 contracts on May 24.
ICE Fixed Income finished the month with ADV of 2.0 million contracts, +27% YoY. Open Interest (OI) in the complex was 32.2 million contracts, +33% YoY.