Inflation Swaps Product Specification

Product Code:

INF-SWP-GLO-ALL

Description:

Whether you are a trader, risk manager, or portfolio manager, our inflations swaps market data yields valuable information on current market conditions and trends. Inflation Swaps Data Packages from TraditionData Our inflation swaps data packages provide comprehensive market coverage. Datasets are sourced directly from Tradition’s brokerage desks, with 5 desks in 4 countries. By offering smaller, focused and more granular packages based on region and product, our clients only pay for what they need, as opposed to receiving larger data packages that need unbundling. Real-time, Intraday and End of Day prices are available for interest rate markets providing complete flexibility on both data content and delivery method.

Data Source:

Data sourced directly from Tradition’s brokerage desks with 5 desks in 4 countries.

Delivery Method:

• real-time:Access real-time data
• Hourly:Receive hourly snapshots delivered via SFTP.
• end-of-day:Obtain end-of-day snapshots delivered via SFTP.

Data Frequency:

Market data is updated real-time directly sourced from various trading platforms.

Data Format:

CSV files for houtly snaps , FIX API for Real-time

Data Coverage:

• Asset Class: Inflation ( INF )
• Sub Class: Inflation Swaps
• Key stats : ~600 instruments 5 desks in 4 countries CPI of 10 countries and 7 currencies.

Inflation Swaps Data Coverage

Glossary

Tradition Data Packages:

Product Code	Product Name
INF-SWP-GLO-ALL	Global ALL
INF-SWP-AME-ARM	Americas Regional Majors
INF-SWP-EUR-ALL	Europe, Middle East & Africa ALL
INF-SWP-EUR-ERM	Europe, Middle East & Africa Regional Majors
INF-SWP-EUR-MEN	Europe, Middle East & Africa MENA
INF-SWP-EUR-SCA	Europe, Middle East & Africa Scandi
INF-SWP-APA-JPY	Asia Pacific Japan

FAQ:

Question	Answer
How many snap files are available per day?	24 files per day
What are the Key benefits of TraditionData Data package?	Hedging Inflation Risk: Inflation swaps can be used by financial services professionals to hedge against the risk of rising inflation. For example, pension funds and insurance companies can use inflation swaps to protect against the erosion of the real value of their future liabilities. Managing Portfolio Risk: Inflation swaps can be used by financial services professionals to manage portfolio risk by diversifying their investment exposure to inflation-linked assets. Improving Diversification: Inflation swaps can be used to diversify a portfolio by adding exposure to inflation-linked assets, which can help to reduce overall portfolio risk. Hedging Currency Exposure: Inflation swaps can also be used to hedge against currency exposure for entities that have liabilities or assets in a different currency than their operating currency. Customization: Inflation swaps can be tailored to meet the specific investment objectives and risk tolerance of individual investors, enabling them to choose the inflation index and time frame that best fits their needs. Trading Opportunities: Inflation swaps market data provides financial services professionals with real-time pricing, historical data, and implied inflation rates, providing them with valuable information to make informed trading decisions and take advantage of market opportunities.
What are inflation swaps?	Inflation swaps are financial contracts that enable market participants to trade the risk of future inflation. These swaps are typically used by institutional investors and corporates as a hedge against rising inflation. The terms of the swap specify the payment made by one party to the other based on changes in a designated inflation index.
Example of inflation swaps contract?	Company X is a manufacturing firm concerned about the potential impact of inflation on its operating costs. It enters into an inflation swap contract with Bank Y, acting as the inflation payer. The notional amount of the contract is $10 million, and the fixed rate agreed upon is 3%. At the end of the inflation period, if the actual inflation rate is 4%, Company X will receive a payment of $100,000 from Bank Y [(4% – 3%) $10 million]. Conversely, if the inflation rate is 2%, Company X will make a payment of $100,000 to Bank Y [(3% – 2%) $10 million]. This way, Company X effectively hedges against inflation by receiving compensation if the inflation rate exceeds the fixed rate.
What are Key Terms of inflation swaps?	Some key terms related to inflation swaps: Notional Amount: The reference value on which the inflation swap’s cash flows are calculated. Inflation Index: A commonly used index, such as the Consumer Price Index (CPI), which measures changes in the general price level of goods and services. Inflation Period: The time interval over which inflation rates are calculated, often annually or semi-annually. Fixed Rate:The agreed-upon rate that serves as the benchmark for determining the cash flows in an inflation swap.
What is The Consumer Price Index (CPI)?	The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, in different countries. Different countries might have unique names or specific indices that they track for their CPI.
List of CPI rate name for some countries	CPI - Consumer Price Index (CPI) is used at United States, United Kingdom, Canada, Australia, Japan, India, South Africa, Egypt, Nigeria, Malaysia, Philippines, Pakistan, Bangladesh, Ireland, New Zealand and United Arab Emirates. VPI - Verbraucherpreisindex (VPI) Germany Austria INPC Índice Nacional de Precios al Consumidor (INPC) - Mexico IHK Indeks Harga Konsumen (IHK) - Indonesia LIK Landesindex der Konsumentenpreise (LIK) - Switzerland KPI Konsumentprisindex (KPI) - Sweden KPI Konsumprisindeks (KPI) - Norway TÜFE Tüketici Fiyat Endeksi (TÜFE) - Turkey IPC - Índice de Precios de Consumo (IPC) Spain IPC - Indice des prix à la consommation (IPC) France IPC - Indice dei prezzi al consumo (IPC) Italy IPC - Indicele Prețurilor de Consum (IPC) Romania IPC - Índice de Preços no Consumidor (IPC) Portugal IPC - Índice Nacional de Preços ao Consumidor Amplo (IPCA) Brazil
What is CPI Seasonal Fixing?	CPI data often exhibits seasonal patterns—regular fluctuations that occur at specific times of the year due to factors like holidays, weather changes, and other cyclical events. For instance, the cost of certain goods and services may rise in the winter due to heating needs or in the summer due to vacation-related spending. To accurately reflect inflation trends without these seasonal effects, a seasonal adjustment is made to the CPI data. This adjustment aims to isolate the underlying inflation trend by removing predictable seasonal effects.
Is Historical Data Available?	Yes, since 2022

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