Cboe IBHY Futures set volume and notional value records

Dan Barnes
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Michael Mollet, head of futures, Cboe.

Market operator and trading solutions provider, Cboe Global Markets, reports trading in Cboe iBoxx iShares $ High Yield Corporate Bond Index (IBHY) futures set a new daily volume record on Monday 28 December, with a reported 4,451 contracts traded, representing more than US$648 million in notional value. This new record surpasses the previous high of 3,891 contracts traded on 28 October 2020, according to Cboe.

In addition, Cboe iBoxx iShares $ Investment Grade Corporate Bond Index (IBIG) futures reached their second highest daily volume of all-time on Monday 28 December with a reported 610 contracts traded, representing more than US$92 million in notional value. Both IBHY and IBIG futures are traded on Cboe Futures Exchange (CFE).

Designed to tap the iShares ETF ecosystem, IBHY and IBIG futures are based on indices designed to measure the performance of US dollar-denominated high yield and investment grade corporate debt, and offer broad coverage for the liquid US high yield and investment grade corporate bond universes.

Michael Mollet, head of futures, at Cboe said, “Since April of this year, we’ve seen steady growth in volume of both IBHY and IBIG futures as investors look to tailor their exposure to the nearly US$9 trillion U.S. corporate bond market. We believe an exchange-traded, centrally cleared instrument brings tremendous utility to the space by providing market participants a transparent, standardized tool to help with efficient credit risk mitigation or to implement fixed income trading strategies.”

Cboe’s corporate bond index futures began trading in autumn 2018. IBHY futures are cash-settled futures on IHS Markit’s iBoxx iShares $ High Yield Corporate Bond Index (IBXXIBHY Index) and IBIG futures are cash-settled futures on IHS Markit’s iBoxx iShares $ Investment Grade Corporate Bond Index (IBXXIBIG Index).

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