September 2018 - CurveGlobal Newsletter
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CURVE POINTS | SEPTEMBER 2018  Crash, Bang, Wallop! This month marks our two-year anniversary – and what a journey it’s been. So please accept a small amount of reflection as starting, running and driving CurveGlobal has been in equal measure immensely challenging and supremely fun. Those of you who know me well, know that I love a good metaphor, so wait for it...While we’re in the foothills, we have walked many miles but still have peaks to climb. For the progress to date, we can only thank all our participants for embracing the opportunity to make a difference to the futures markets and in doing so, creating more efficient (= profitable) markets in which to operate. Many of you have joined in record numbers in recent weeks. Perhaps that’s unsurprising given that OI is sitting at over 300K lots, there were record volumes and volume share in August (while many other exchange volumes were down), and we’ve consistently offered best pricing. The growing numbers of buy-side, sell-side and PTG firms trading and owning positions is a reflection of the value customers see in CurveGlobal products – so my thanks again to everyone for joining us on the journey to a better future. Momentum growing When we set out on this venture, our aim was to liberate the futures market for the benefit of all participants. Introducing competition, driving choice, launching new products, and lowering fees were all priorities. Two years on, there is a real sense of momentum. The lower block thresholds (at regulatory Large In Scale levels) have meant a thriving set of brokers are conducting block business inside the on-screen price for ever more clients. If you need to hedge risk in a low volatility environment, do you really want to sit on the offer all day long and risk not getting filled? Work it at mid-market! And the change to a half tick has meant that we’re consistently best price at the front of the book. As the risk of a Hard Brexit continues we offer a solution as a Brexit hedge, a no-cost/low-cost way of maintaining access to EUR derivatives markets without having to set up an additional European entity and become a member of Eurozone exchanges and CCPs. Furthermore, as the concerns over the Italian budget unnerve the EU, and the worries about EU-based closed cycle clearing increase (EU clients in the EU clearing EU products), why not diversify your risk and trade your futures in a global market in the UK, while deriving all the benefits of clearing with LCH? But we’re not stopping here. Full steam ahead We’ve got exciting plans with partners to launch new products and continue rebuilding what was a broken market structure. Portfolio margining for the long end of the interest rate curve is due to go live at LCH in November. We’re already seeing firms ask us and banks about switch trades, to minimise the margin across exchanges. How exciting! My thanks for taking the time to read this note but, more importantly, for joining the market, trading positions, and for the advice and encouragement. CurveGlobal would not be here were it not for the support and demand from the market, so it’s humbling to see what can be delivered when we work together. in meliora contende Thanks,  Trade Concept STIR Futures, Best Execution and Strategy Trading Round-up By: Ian Murphy Continued growth in CurveGlobal volumes and open interest
Three month Euribor®
Three month Sterling
The CurveGlobal® Three month SONIA
Best execution focus in Three month Sterling
Figure 1 shows the independent analysis by big xyt of the white and red CurveGlobal® Three month Sterling order book.  September EDSPs and Accrual
Futures Strategies
Figure 2 shows the volume split for STIR futures between the different types of execution strategy for CurveGlobal STIRs.  *Trade data from 30/04/18 to 27/08/18 Monthly Volumes and Open Interest CurveGlobal SONIA Update VideoAndy Ross, CurveGlobal CEO, talks on LIBOR reform and the growing adoption of the CurveGlobal® Three month SONIA Futures contract. To watch the video, click on the image below or view it on our website here.  Team Spotlight 60 Seconds with...Milain Thakkar, Product Development at CurveGlobal 1. What are you listening to/reading these days? The most recent book that I’ve read is Sapiens by Yuval Noah Harari – it gives us a snapshot of how the human race has evolved over millennia from the genesis of mankind itself in East Africa to establishing our current stance in the world ecosystem. Dwayne Johnson (The Rock). Besides being one of Hollywood’s top earners, those who follow his social media know that he is a seriously hard worker. I think there’s quite a lot I could learn from him – he has overcome quite a bit of adversity in life to get to where he is today. I thought I would be a qualified surgeon at this point. Clearly things took a bit of a turn along the way! Press Articles of NoteTIME RUNNING OUT FOR EU BREXIT TEMPORARY PERMISSIONS REGIME RISK.NET ECB LOOKS TO ‘ACCELERATE’ ESTER PUBLICATION HOW MUCH OF THE SWAPS MARKET IS TRADED AS AN OIS? DEALERS SEEK FRTB CARVE-OUT FOR LIBOR TRANSITION Come Visit us HereFIA // 34th ANNUAL FUTURES & OPTIONS EXPO FI // FIXED INCOME LEADERS SUMMIT To find out more about CurveGlobal or to offer suggestions on improving this newsletter, contact us at +44 20 7797 1055 or info@curveglobalmarkets.com. |
