CMC Markets Connect Adds SONIA Index Futures

CMC Markets Connect​ is now offering institutional clients access to a series of SONIA Index Futures. SONIA – Sterling Overnight Index Average – has replaced LIBOR as the new measurement of the rates paid by banks on overnight funds. It is seen as being significant more robust than its predecessor on the basis the price is derived from active, liquid underlying markets. In addition to the cash price, CMC Markets is currently quoting quarterly expiries through to the end of 2023.

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Richard Elston, head of institutional at CMC Markets commented: "As a business, we're always committed to the constant evolution of our instrument set, ensuring that we can act as a one stop shop for all our clients. From the start of this year, LIBOR was no longer being considered as the benchmark rate, so it made sense for us to provide a more appropriate product to meet the market need in 2022. This is arguably one of the more significant product additions we have made, especially for the UK market, so far this year we have already grown our tradable universe by almost 1,000 instruments, with this momentum being set to continue."

These SONIA index futures replace UK Short Sterling contracts and complement the existing treasury products offered by CMC Markets. These currently include sovereign debt for a range of maturities from the US, Canada, Japan and the UK, alongside multiple Eurozone member state issuances.