The U.S. leveraged loan market has grown into a crucial $1.54 trillion segment of the credit landscape, now rivaling high-yield corporate bonds. To meet strong institutional demand for efficient risk management, we are launching futures on the S&P UBS USD Liquid Leveraged Loan Index. This new exchange-traded contract will provide a capital-efficient and reliable tool to manage risk and address critical hedging gaps in this rapidly expanding market.
*Pending regulatory review
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Key features
Superior capital efficiency
Maximize leverage relative to ETFs, capture margin offsets against Credit, Treasury and Equity Index futures, and bypass uncleared margin rules (UMR).
Pioneering risk management
Bridge the credit hedging gap with the first exchange-traded contract built specifically to manage leveraged loan risk, using the same underlying index as standardized iBoxx TRS.
Streamlined sell-side hedging
Seamlessly manage banking risk exposures across underwriting, warehouse financing and secondary market liquidity provision.
Flexible buy-side strategies
Gain broad exposure, hedge loan prices during CLO ramp-ups or overlay portfolios to protect high-conviction positions.
Contract specifications
|
PRODUCT |
S&P UBS USD Liquid Leveraged Loan Index futures |
|---|---|
|
CONTRACT UNIT |
$100 x index |
|
PRODUCT CODE |
Globex: LVE ClearPort: LVE |
|
BLOOMBERG TICKER |
LVE index |
|
SETTLEMENT METHOD |
Financially settled |
|
PRICING QUOTATION |
Index price |
|
MINIMUM PRICE FLUCTUATION |
Globex: 0.1 index points ($10.00 per contract) ClearPort: 0.01 index points ($1.00 per contract) |
|
LISTING SCHEDULE |
Nearest three quarterly months (Mar, Jun, Sep, Dec) |
|
TERMINATION OF TRADING |
Trading terminates on the business day before the third Wednesday of the contract month |
|
BLOCK RULES |
50 contracts with a 15-minute reporting window; derived block eligible |
|
MATCHING ALGORITHM |
FIFO |
|
TRADING AND CLEARING HOURS |
Globex: Sunday - Friday 5:00 p.m. - 4:00 p.m. Central time (CT) ClearPort: Sunday - Friday 5:00 p.m. - 4:00 p.m. CT |
About the underlying index
The S&P UBS USD Liquid Leveraged Loan Index tracks the performance of the most actively traded, liquid U.S. dollar-denominated leveraged loans. Derived from the broader S&P UBS Leveraged Loan Index, it isolates around 100 highly liquid loans to provide a tradable benchmark for derivatives and ETFs.
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