The change in specification comes after a comprehensive review of market sentiment conducted by the exchange. It is the first change to the contract’s specification since the contract was decimalised in May 1998. A change to 6% will improve the stability of the contract’s pricing behaviour for hedging purposes, limiting the risk of duration-based uncertainty.
Commenting on the change, Amanda Sudworth, Director of Interest Rate Products at Euronext.liffe said: “This change will help ensure our Long Gilt future continues to be a reliable risk management tool for the sterling denominated bond market.”
