In futures markets, volume in each contract has historically migrated to a single venue, unlike most other markets, which have followed a horizontal model with open access. The demise of LIBOR creates an opportunity that could trigger a new era of competition in interest rate futures, suggests Amir Khwaja, CEO of Clarus Financial Technology. While the CME seems to be holding on to its dominance in the May., ICE’s position in the sterling futures market is being challenged. For example, CurveGlobal’s SONIA-linked contracts have attracted a 29% market share.
In futures markets, volume in each contract has historically migrated to a single venue, unlike most other markets, which have followed a horizontal model with open access. The demise of LIBOR creates an opportunity that could trigger a new era of competition in interest rate futures, suggests Amir Khwaja, CEO of Clarus Financial Technology. While the CME seems to be holding on to its dominance in the US, ICE’s position in the sterling futures market is being challenged. For example, CurveGlobal’s SONIA-linked contracts have attracted a 29% market share.