Intercontinental Exchange, Inc. (NYSE: ICE) has announced the launch of its Long European Union (EU) Bond Index futures, marking the debut of the contract with its first trades.
The cash-settled futures reference the ICE 8-13 Year European Union Index (Ticker: G0EU8T13), which tracks long-term debt issued by the EU. This index is produced by ICE Data Indices (IDI), a recognized third-country benchmark administrator under the U.K. Benchmarks Regulation. The ICE 8-13 Year European Union Index focuses on securities with a remaining maturity of 8 to 13 years, offering targeted exposure to a specific point on the EU curve.
According to Caterina Caramaschi, Vice President of Financial Derivatives at ICE, the introduction of this product addresses the growing need for risk management tools in the harmonized EU debt market. “As this space evolves, market participants require futures contracts to hedge their positions,” Caramaschi said. “By offering a cash-settled, equity-style index instrument, ICE is expanding the liquidity pool for EU debt.”
The new futures contract will trade alongside ICE’s extensive suite of multi-currency interest rate markets, including Euribor, €STR, SONIA, SARON, and U.K. Gilts, which represent the benchmark for the U.K. government bond yield curve. ICE’s interest rate derivatives complex has seen a 20% year-over-year increase in open interest.
Related topic:
