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ICE rates contracts surpass CME SOFR in June

Created at 10 Jul · 3:40 AM1 source↑ Market-relevant
IN SHORT

Open interest in ICE interest rate derivatives exceeded CME's SOFR contracts for the first time in June, driven by increased demand for euro and sterling hedging. Combined open interest on ICE reached $62.3 trillion.

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Key Numbers

$62.3 trillionICE interest rate derivatives open interest
$55.9 trillionCME interest rate derivatives open interest

Who's Involved

ICE
Exchange where interest rate derivatives open interest surpassed CME
CME
Exchange whose SOFR contracts were surpassed by ICE

↳ Why This Matters

The shift in open interest indicates a potential change in market preference for hedging instruments, with ICE's offerings gaining prominence over CME's SOFR contracts, particularly for euro and sterling-denominated hedges.

Key facts

  • ICE interest rate derivatives open interest surpassed CME SOFR contracts for the first time in June.
  • Demand for euro and sterling hedging contributed to the increase.
  • Combined open interest in ICE's Euribor, Sonia, and SOFR contracts reached $62.3 trillion.
  • CME's open interest in comparable contracts stood at $55.9 trillion.

In June, the notional open interest in ICE interest rate derivatives surpassed that of CME's flagship SOFR contracts for the first time. This shift was attributed to a rise in demand for hedging in euro and sterling. Data from both exchanges revealed that the combined daily open interest in ICE's Euribor, Sonia, and SOFR contracts reached $62.3 trillion in mid-June. This figure exceeded CME's comparable contracts, which stood at $55.9 trillion.

Frequently asked questions

SOFR stands for Secured Overnight Financing Rate, a benchmark interest rate used in the United States.

Euribor (Euro Interbank Offered Rate) and Sonia (Sterling Overnight Index Average) are benchmark interest rates for the Eurozone and the UK, respectively.

Open interest represents the total number of outstanding derivative contracts that have not been settled.

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How It Developed

Open interest in ICE interest rate derivatives surpassed CME SOFR contracts in June.
Demand for euro and sterling hedging increased.
Combined open interest on ICE reached $62.3 trillion in mid-June.
CME's open interest was $55.9 trillion.

Sources

T1
Ice rates contracts leapfrog CME SOFR in JuneRisk.net

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