Dec 13, 2019
CurveGlobal continues to innovate and build momentum
- New uncapped pre-paid trading fee scheme available
- CurveGlobal products demonstrating the benefits of competition and choice for futures markets
- Successful completion of new funding round to drive international product expansion and long-term growth
CurveGlobal, the interest rate derivatives business, has introduced a unique uncapped pre-paid trading scheme. The upfront fixed fee allows all CurveGlobal Markets Member Firms and their clients to execute an unlimited number of lots in any CurveGlobal interest rate derivatives products over a one year or three-year period. CurveGlobal continues to grow with Open Interest in EUR and GBP short-term interest rate (STIR) products having recently exceeded 7% of volumes traded, and with an even greater market share of trading in SONIA contracts. The momentum behind CurveGlobal reflects a growing appetite for more capital-efficient and open alternatives to existing derivatives trading services. CurveGlobal addresses several of the market’s biggest concerns, which include a desire to have a choice of where to clear (and optimise) trades.
Since its launch in 2016, CurveGlobal has led the way in innovation, introducing the first 3-month SONIA contract in April 2018 and the first native intercommodity spread between SONIA and Libor-based contracts. It was also the first to move Sterling interest rate futures to ½ a tick across the whole curve. The recently introduced finer price tick in the intercommodity spread is also offering enhanced price discovery and greater choice allowing participants to trade in a way that suits them as the market continues to transition from Libor to SONIA.
The benefits of trading CurveGlobal products include:
- Lower transactional costs
- No market data fees
- Trading closer to mid in the block market
- Ability to cross margin futures with futures and futures with OTC swaps cleared at LCH
CurveGlobal has also successfully secured an additional round in new funding from existing shareholders demonstrating continued support for the development of the platform. The funding will support further expansion of CurveGlobal’s international product offering by adding additional futures all tradable through CurveGlobal Markets, the derivatives segment of London Stock Exchange.
Andy Ross, Chief Executive, CurveGlobal said:
“CurveGlobal’s philosophy has always been to work in partnership with market participants to improve choice and drive much-needed competition in the futures markets. The unique fixed-price unlimited trading fee scheme will offer participants greater certainty of costs and is another example of how CurveGlobal is fundamentally changing the market structure for exchange traded derivatives.
“CurveGlobal is supporting the transition away from Libor-based derivatives offering tools to help the market manage risk. Many buy-side firms have found CurveGlobal futures attractive products to hedge short end convexity in their cleared OTC positions and our Adaptive Pricing allows them to hedge this risk at more attractive prices in the block market than on an Order Book. We are delighted to have secured funding from shareholders to expand our product offering into new currencies and deliver further growth.”
About LSEG
LSEG (London Stock Exchange Group) is a leading global financial markets infrastructure and data provider, playing a vital social and economic role in the world’s financial system.
With our open approach, trusted expertise and global scale, we enable the sustainable growth and stability of our customers and their communities. We are dedicated partners with extensive experience, deep knowledge and a worldwide presence in data and analytics; indices; capital formation; and trade execution, clearing and risk management across multiple asset classes.
LSEG is headquartered in the United Kingdom, with significant operations in 70 countries across EMEA, North America, Latin America and Asia Pacific. We employ 23,000 people globally, more than half located in Asia Pacific. LSEG’s ticker symbol is LSEG.