IntercontinentalExchange Group (NYSE: ICE), the leading global network of exchanges and clearing houses, today provided an update on the first week of trading for 30 Year Ultra Long Gilt futures listed on Liffe. The contract launched on March 31, 2014 with strong first week volumes of 9,214 contracts traded and open interest of 2,634 as at April 4, 2014.
The Ultra Long Gilt future complements Liffe’s benchmark 10 Year Long Gilt futures contract and together, they provide opportunities to trade the basis across the UK sovereign yield curve.
David Peniket, President & COO, Liffe and ICE Futures Europe said: “We would like to thank UK Gilt market participants for supporting this product launch, which is the first of many new products. The early participation in the Ultra Long Gilt market demonstrates the importance of having a full range of maturities to manage risk in the UK debt markets.”
International interest in UK Gilts has continued to grow with UK conventional bonds exceeding £1 trillion¹ in notional amount outstanding as at March 2014. Gilts with more than 25 years remaining to maturity have over £200bn notional outstanding; Liffe Ultra Long Gilt futures will help participants manage their risk exposure to longer dated UK debt.
The 10 year Long Gilt futures contract, which was established in 1982, has seen significant and consistent annual growth, with an average daily volume in 2013 up 12% on 2012, at over 165,000 contracts.
¹ Debt Management Office (DMO) — Gilts in Issue 25 March 2014