NYSE Euronext announced plans to launch a range of stock-index contracts, the exchange's latest move to elbow its way into the U.S. derivatives market.
The parent of the New York Stock Exchange, known for its traditional stock-listing and trading businesses, has been expanding into the markets of commodities, stock indexes and options, which are dominated by Chicago Mercantile Exchange parent CME Group Inc.
The new index futures, set to begin trading in the third quarter, will link to MSCI Inc.'s benchmarks for U.S. and European stock markets, as well as indexes tracking Brazil, Russia, India, China and other emerging markets.
The MSCI products would compete with CME's stock futures based on Standard & Poor's and Dow Jones & Co. indexes. (Dow Jones, a unit of News Corp., publishes The Wall Street Journal.)
"It's an upward battle" for NYSE, said Richard H. Repetto, principal at Sandler O'Neill & Partners. "They are going against an 800-pound gorilla." CME handles more than 90% of all futures trades in the U.S.
Thomas Callahan, head of U.S. futures at NYSE Euronext, said the exchange doesn't anticipate that winning market share will be "easy and quick." Market participants have been calling for more price competition and new products, Mr. Callahan said. NYSE Euronext's distribution network and client relationships make it "well-positioned to be a viable competitor," he said.
http://online.wsj.com/article/SB124335377095254803.html
800 pound gorilla ? LOL ! Just waiting that they launch this baby. When will CME finally come down with exchange fees ?
The parent of the New York Stock Exchange, known for its traditional stock-listing and trading businesses, has been expanding into the markets of commodities, stock indexes and options, which are dominated by Chicago Mercantile Exchange parent CME Group Inc.
The new index futures, set to begin trading in the third quarter, will link to MSCI Inc.'s benchmarks for U.S. and European stock markets, as well as indexes tracking Brazil, Russia, India, China and other emerging markets.
The MSCI products would compete with CME's stock futures based on Standard & Poor's and Dow Jones & Co. indexes. (Dow Jones, a unit of News Corp., publishes The Wall Street Journal.)
"It's an upward battle" for NYSE, said Richard H. Repetto, principal at Sandler O'Neill & Partners. "They are going against an 800-pound gorilla." CME handles more than 90% of all futures trades in the U.S.
Thomas Callahan, head of U.S. futures at NYSE Euronext, said the exchange doesn't anticipate that winning market share will be "easy and quick." Market participants have been calling for more price competition and new products, Mr. Callahan said. NYSE Euronext's distribution network and client relationships make it "well-positioned to be a viable competitor," he said.
http://online.wsj.com/article/SB124335377095254803.html
800 pound gorilla ? LOL ! Just waiting that they launch this baby. When will CME finally come down with exchange fees ?
