(Alliance News) - London Stock Exchange Group PLC on Tuesday evening announced the closure of its derivatives segment, CurveGlobal Markets, after it failed to gain enough market share against long-established rivals like Deutsche Boerse AG and IntercontinentalExchange Inc.
LSEG said CurveGlobal will stop trading at the end of January next year.
It is mostly long-term and medium-term contracts which will be suspended with immediate effect. These include Schatz Futures, Bobl Futures and Long Gilt Futures.
However, some short-term interest rate derivatives contracts will continue trading, like the Three Month Sterling Futures, 1 Million Three Month Sterling Futures and the Three Month SONIA Futures.
CurveGlobal was launched in 2016 with an initial GBP30 million - although it repeatedly needed funding - and garnered backing from Bank of America Merrill Lynch, Barclays PLC, Citigroup Inc, Goldman Sachs Group Inc, and JP Morgan.
Initially, LSEG was to invest GBP9.5 million for an initial 32% stake, which was expected to shrink to 25% as new investors came on board.
Shares in LSEG were down 0.4% at 7,944.00 pence in London on Wednesday.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Barclays (BARC)