About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

TP ICAP Rolls Out Data Products for SOFR-Linked Derivatives

Subscribe to our newsletter

By Uri Inspector, Staff Reporter

TP ICAP has introduced two distinct data feeds for derivatives linked to the Secured Overnight Financial Rate (SOFR) benchmark, an alternative to the London Interbank Offered Rate (Libor) that was first published by the Federal Reserve Bank of New York in April 2018. The data products have been sourced from TP ICAP’s competing broking businesses – Tullett Prebon and ICAP – using their separate liquidity pools, and developed using volume observations, modelling and data capture.

The company says the products have been designed to provide a comprehensive view of the emerging SOFR-linked derivatives market and to support enhanced trading, risk management and analytics. Both offerings include indicative curves, delivered in real-time or end-of-day, for Basis Swaps (SOFR vs 3M $ LIBOR, SOFR vs $ Fed Funds Compounded) and Fixed vs SOFR.

Since the introduction of SOFR-linked derivatives five months ago, trade volumes for this type of OTC derivative have grown consistently. With more major banks, asset managers and other institutions using derivatives tied to the SOFR index, TP ICAP’s data sets are being developed as a response to the nascent demand for an institutional-grade infrastructure to support trading and risk modelling. Moreover, the data feeds will also enable smaller firms, who may not have access to the analytical and modelling capabilities of larger, earlier entrants, to start trading these derivatives.

Eric Sinclair, CEO of TP ICAP’s Data and Analytics division, says: “We made the decision to launch these two data products because, from experience, all signs are pointing to the emergence of a robust market. In an OTC marketplace, the more variety and depth that an institution can have using trade data, the more accurate their pricing and modelling becomes. Here, our competing brokerage model serves as a strength in that these two products can be used together to deliver the first comprehensive view into how this market is unfolding.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Tackling digital transformation challenges for operations teams

Digital transformation is a hot topic in capital markets, promising modernisation, better decisions, and faster time to market. It can deliver innovative front-office customer-facing applications and cloud solutions – but what is often forgotten is the role, and importance, of the back office in these transformative programs. Digitisation can only be as effective as the...

BLOG

A-Team Insight Announces RegTech Award Winners as APAC Navigates Compliance Complexity

A-Team Group is proud to reveal the winners of our inaugural Capital Markets Technology APAC Awards 2025, recognising the firms and solutions demonstrating exceptional innovation across the Asia Pacific region. Alongside this announcement, we have launched our in-depth annual report, “The State of Capital Markets Technology in Asia Pacific 2025”, which examines the key trends...

EVENT

RegTech Summit London

Now in its 9th year, the RegTech Summit in London will bring together the RegTech ecosystem to explore how the European capital markets financial industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Impact of Derivatives on Reference Data Management

They may be complex and burdened with a bad reputation at the moment, but derivatives are here to stay. Although Bank for International Settlements figures indicate that derivatives trading is down for the first time in 10 years, the asset class has been strongly defended by the banking and brokerage community over the last few...