CurveGlobal® Three month SONIA Futures soon to be eligible for cross-product margining at LCH's SwapClear
Three month SONIA Futures eligible for cross-product margining against OTC swaps from 19 November
Reduction in tick size for CurveGlobal Government Bond futures
Cross-margining of Government Bond futures against $341tn of cleared swaps
Users of CurveGlobal’s market leading Three month SONIA Future will be able to benefit from portfolio margining efficiencies versus cleared swaps in multiple currencies at LCH SwapClear from 19 November 2018. Firms can dramatically reduce their collateral requirements for SONIA futures against offsetting OTC positions. From 19 November, not only will firms be able to margin SONIA futures, LIBOR swaps, OIS/SOFR swaps and LIBOR futures against the LCH OTC liquidity pool with over $341tn in notional; but they will also further benefit from greater choice, lower fees, tighter prices, narrower spreads and even better trade execution.
Furthermore, LCH will also allow firms to cross-margin Government Bond futures in GBP and EUR against their cleared swaps in SwapClear.
Finally, CurveGlobal is reducing the tick size of its listed Government Bond futures contracts to allow its users to trade closer to mid.
Tick size reductions per contract type: In preparation for the expansion of LCH Spider, we are reducing bond tick sizes for:
Schatz futures – from 0.005 (EUR 5 per tick) to 0.0025 (EUR 2.5 per tick)
Bobl futures – from 0.01 (EUR 10) to 0.005 (EUR 5)
Bund futures – from 0.01 (EUR 10) to 0.005 (EUR 5)
Long Gilt futures – from 0.01 (GBP 10) to 0.005 (GBP 5)
Before these changes come into effect, all firms will have access to the testing environment from 1 November.
DISCLAIMER: The “SONIA” mark is used under licence from the Bank of England (the benchmark administrator of SONIA), and the use of such mark does not imply or express any approval or endorsement by the Bank of England. “Bank of England” and “SONIA” are registered trademarks of the Bank of England.
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