Source: London Stock Exchange
CurveGlobal, the new interest rate derivatives venture developed by London Stock Exchange Group (LSEG) with a number of major dealer banks: Bank of America Merrill Lynch, Barclays, BNP Paribas, Citi, Goldman Sachs, J.P. Morgan and Societe Generale, together with the Chicago Board Options Exchange, has gone live.
CurveGlobal, which will initially offer trading via London Stock Exchange Derivatives Markets in Short Term Interest Rate (STIR) futures in EuriborTM and Short Sterling and Long Term Interest Rate (LTIR) futures in Bund, Bobl, Schatz and Gilts, has been developed to help investors trade, hedge and transfer risk more efficiently.
As well as offering low cost fees and no market data charges, CurveGlobal will give investors access to a single default fund across OTC, and listed trades via LCH, as well as the ability to use the portfolio margining tool, LCH Spider, to generate margin offsets against a deep pool of derivatives open interest.
Xavier Rolet, CEO, London Stock Exchange Group said:
“Open Access markets are the future of financial infrastructure. In response to customer demand, we have launched CurveGlobal today in partnership with our customers, a new venture that not only offers genuine competition, but also makes portfolio margining available to a greater number of market participants, generating potential capital savings that can in turn be used to make investments in the real economy.”
Andy Ross, CEO, CurveGlobal said:
“Market participants are under new and ever-increasing cost of capital and regulatory pressures. CurveGlobal through its Open Access and low cost infrastructure offers a compelling solution to safely manage risk and to maximise efficiency. From launch today, we start with a proven exchange and clearing architecture, as well as access to a deep pool of open risk, totalling over $100 billion in initial margin. We are not starting from scratch.
“We aim to create a new future for derivatives trading and clearing. We have a mandate to innovate and an unrivalled appetite to work with and for customers. While today is an exciting moment, it is just the beginning. We will be announcing new contracts and products but most importantly, listening and responding to the market with new innovations.”
Gaspard Bonin, Deputy Global Head of Derivatives Execution and Clearing at BNP Paribas said:
“CurveGlobal will strengthen competition across derivatives market places, and foster innovation across the industry. We believe this is instrumental to supporting our clients in the evolving regulatory environment and consequently renewed market dynamics.”
Kostas Pantazopoulos, Global Head of Rates Trading at Goldman Sachs said:
“CurveGlobal’s launch marks the addition of an important new element to the Futures market. The products CurveGlobal offers and its connectivity to LCH mean that market participants stand to realise significant efficiencies through Portfolio Margining.”
All products designed and supported by CurveGlobal are admitted to trading on London Stock Exchange Derivatives Market, and cleared through LCH.