TT partners with CurveGlobal to help market transition from LIBOR to SONIA

Rick Steves

STIR products available through CurveGlobal are 3M Euribor, 3M Sterling, 3M SONIA, and 1M SONIA.

CurveGlobal has partnered with Trading Technologies International that will mutually benefit the firms as they exchange services for their client bases.

CurveGlobal is an interest rate derivatives trading platform, a Listed Future Exchange subsidiary of London Stock Exchange Plc. The platform has gained more attention with Brexit as it helps the market transitioning from LIBOR to SONIA.

STIR products available through CurveGlobal are 3M Euribor, 3M Sterling, 3M SONIA, and 1M SONIA.

TT’s customers who are not currently connected to Curve will be able to trade short term interest rate futures with no Market Access Provider (MAP) fees, enabling them to benefit from growing volumes and open interest on CurveGlobal, particularly in SONIA-linked instruments.

CurveGlobal futures also clear at LCH enabling customers to further benefit from portfolio margining opportunities.

Andy Ross, Chief Executive Officer at CurveGlobal, said: “Our partnership with Trading Technologies will enable their customers to benefit from lower costs and significant margin efficiencies when trading STIRs through CurveGlobal.

“The easy electronic access available through Trading Technologies will also give traders the opportunity to benefit from free market access and clearing as well as portfolio margining against OTC products cleared through LCH Ltd.”

Steve Stewart, Managing Director Sales EMEA, Trading Technologies: “CurveGlobal has been leading the charge to increase competition in the interest rate futures space. We are happy to be working with them to provide our mutual customers with access to their platform as they continue to grow.”

A research study conducted by Duff & Phelps found that 77% of financial institutions do not have a comprehensive plan in place for LIBOR transition, which is due to take place on 31 December 2021.

Over half of the firms (54%) identified LIBOR exposures, but haven’t resolved their liability nor have they taken any action towards it, as most had not cataloged transition provision, and nearly half were unsure of what to do next.

The data was gathered from a sample of 27 respondents, comprised of private equity firms (43%), professional service providers (25%), hedge funds (11%), banks (4%), and others (18%).

Quite astonishing is the finding that almost a quarter (23%) of the firms surveyed have not begun any formal processes to identify exposure.

Failure to adequately prepare for the LIBOR transition could lead to significant risks for firms as contracts transition to alternative reference rates. As such, there is potential for the underlying value to shift from one party to another.

A third of respondents (34%) revealed a belief that they are on track for the transition, despite the stunted progress across the majority of the industry. Firms are potentially underestimating the extent and complexity of work required for a successful transition.

Nearly a third of respondents have begun thinking about their transition and are unsure whether they are on track, while 14% have not begun planning, with a further 14% concerned they will not be ready before at least Q1 2022, which is too late.

  • Read this next

    Retail FX

    Weekly Roundup: John Oliver rips into MetaTrader, Binance to pay $10 billion

    Welcome to this week’s roundup, where we delve into the latest developments in the Forex, Fintech, and cryptocurrency markets. Stay ahead of the curve with our comprehensive overview of the week’s most impactful events and trends across these dynamic sectors.

    Retail FX

    Lark Funding reopens to US traders, MyFundedFX picks cTrader

    Canada-based prop trading firm Lark Funding announced it will once again welcome clients from the United States.

    Institutional FX

    Cboe FX volume falls to lowest level since summer

    Cboe’s institutional spot FX platform, known as Cboe Spot, today announced its trading volume for the month ending February 2024, which took a step back after a strong rebound in December.

    Retail FX

    ThinkMarkets secures lucrative DFSA license in Dubai

    Melbourne-based broker ThinkMarkets has secured a license from the Dubai Financial Services Authority (DFSA) after it has already incorporated its new subsidiary in the Dubai International Financial Center (DIFC).

    Digital Assets

    New Horizen Lays Out Its Vision Of A Modular, Proof Verification Layer For Web3 Networks

    Horizen is forging a new path for the future of blockchain with its New Horizen initiative, which is building a modular Proof Verification layer that’s dedicated to verifying cryptographic proofs for any settlement layer, beginning with Ethereum. 

    Digital Assets

    Karma3 Labs Raises a $4.5M Seed Round Led By Galaxy and IDEO CoLab to Build OpenRank, a Decentralized Reputation Protocol

    Using OpenRank, developers and web3 companies can build consumer apps where people can discover, use, fund, read, or buy something on-chain without worrying about getting spammed or scammed.

    Digital Assets

    Worldcoin down as Elon Musk sues OpenAI CEO Sam Altman

    Worldcoin’s (WLD) token dropped following news of a lawsuit against related company OpenAI. The lawsuit was filed by Elon Musk and accused OpenAI and CEO Sam Altman of breach of contract.

    Institutional FX

    Exegy’s Liquidity Lamp adds intraday data to outperform S&P 500 by 31.8%

    Exegy has incorporated intraday signals into its AI-powered iceberg order detection tool, Liquidity Lamp. By adding intraday data to a baseline mean reversion strategy, Exegy’s model outperformed the baseline by 10.5% and the S&P 500 (SPY) by 31.8%, respectively in the out-of-sample testing.

    Industry News

    Think Elon Musk backed your crypto exchange? ASIC’s latest reveal may shock you

    In an absolutely shocking turn of events that nobody could have possibly seen coming, the Australian Securities and Investments Commission (ASIC) has bravely stepped forward to reveal that, yes, those videos of Elon Musk passionately endorsing a cryptocurrency exchange are as fake as a three-dollar bill.

    <