MARCH 2019 - CURVEGLOBAL NEWSLETTER
CURVE POINTS | MARCH 2019 ![]() Lift-off! So what’s the answer? Well, we’ve spent a fair amount of time banging you over the head about the margin offsets we offer at LCH. You know about lower execution costs. And of course, there’s no charge for data at CurveGlobal. All economically important – but seemingly not enough by themselves to fire the after-burners. Perhaps surprisingly, technology and market structure are the real agents of change. On the technology front, the deployment of the Fidessa smart order router (SOR) is allowing traders to aggregate the market and “split” orders based on best price or in some type of proportion. SORs are not new in equity and FX markets but Fidessa joins TT and Stellar in offering this service to customers in futures. Delivering the economic results without changing the habits of the trader has been huge! On the market structure side, our dynamic futures block pricing now allows you to trade between the bid and offer at any price that suits you. As a trader, you had two choices to get filled previously: hit the bid or sit passively on the offer and hope you get lifted. At CurveGlobal, we’re pioneering a “third way” that allows the user of the product to trade competitively sized blocks at a price between the bid and offer. This is helping to galvanise hedge funds, such as BlueCrest, props and banks to make and take better pricing – inside the bid-offer. Finally, thanks to all my friends and colleagues for the messages of support. After a recent bone break, it’s good to be back up and moving again. I asked my doctor if I could tap dance when I’d regained fitness. He said “Yes.'' That's excellent news, as I couldn’t before I broke my leg! Best, ![]() Trade ConceptCurveGlobal® Three month SONIABy Ian Murphy In this month’s Trade Concept, we look at the CurveGlobal® Three month SONIA as we approach the first anniversary of the contract’s launch, on 30 April 2019. CurveGlobal® Three month SONIA
CurveGlobal Inter Commodity Spreads (ICS)
Volume and Open Interest
Strategy Breakdown
![]() Blocks
![]() SONIA Swap/SONIA Futures
![]() Portfolio Margin Reduction Benefits
LCH Listed Rates Service Examples provided for illustrative non-reliance purposes only, potential benefits indicated are approximate and may not be realised. Data is 20 August 2018. Monthly Volumes and Open Interest![]() Team PicksRead the team’s top picks for something to do on a lazy Sunday afternoon... Feeling peckish? Must see Top read Press Articles of Note (subscription content)BLUECREST BACKS CURVEGLOBAL IN EFFORT TO OPEN UP FUTURES MARKETS ECB ATTACKS EU PLANS FOR BOOSTING SUPERVISION OF CLEARING HOUSES DIFFERING EUROPEAN APPROACHES MAY HAMPER IBOR TRANSITION EU ASSERTS POWER OVER CITY'S EURO CLEARING ROLE SWAPS DATA: SOFR SWAPS SLIP, FUTURES FLIP FRAS WON'T WORK WITH STANDARD LIBOR FALLBACK, EXPERTS SAY Come Visit UsFIA // IDX 2019 To find out more about CurveGlobal or to offer suggestions on improving this newsletter, contact us at +44 20 7797 1055 or info@curveglobal.com. |