Forward prices on ETFs

[matt_sb_101]

I am trying to get a precise answer to my question please. I understand that the quarterly forward price on ETF spread betting is based on some kind of SONIA benchmark + 0.5% interest rate.  Please can you explain which SONIA benchmark precisely? Is there a public domain site I could check to see what it is right now so I don't have to retro-calculate the interest rate?

I think IG should be publishing this information clearly on its site (like it does for overnight funding costs) but in any event I would be grateful if I could get an answer.  

[KoketsoIG]

4 minutes ago, matt_sb_101 said:

I am trying to get a precise answer to my question please. I understand that the quarterly forward price on ETF spread betting is based on some kind of SONIA benchmark + 0.5% interest rate.  Please can you explain which SONIA benchmark precisely? Is there a public domain site I could check to see what it is right now so I don't have to retro-calculate the interest rate?

I think IG should be publishing this information clearly on its site (like it does for overnight funding costs) but in any event I would be grateful if I could get an answer.  

Dear @matt_sb_101,

Thank you for your post!

I wanted to let you know that you can use Bloomberg as a source for this rate, as we also get our information from Bloomberg.

Thanks,

KoketsoIG

[matt_sb_101]

@KoketsoIG That's a no then, it's not in the public domain. I will be writing to IG to request it to be more transparent about the inherent interest charge in synthetic forwards. The fact that you don't even have any kind of published policy on this is really bad for transparency / customer reassurance. Don't you have regulatory duties to be transparent about this?

[KoketsoIG]

24 minutes ago, matt_sb_101 said:

@KoketsoIG That's a no then, it's not in the public domain. I will be writing to IG to request it to be more transparent about the inherent interest charge in synthetic forwards. The fact that you don't even have any kind of published policy on this is really bad for transparency / customer reassurance. Don't you have regulatory duties to be transparent about this?

Dear @matt_sb_101,

Please note that we post the Bloomberg rates every Monday in our community: 

 

It's a great resource for staying updated. If you have any specific requests, feel free to email us at helpdesk.uk@ig.com. 

Thanks,

KoketsoIG