U.S. CFTC approves Eurex's U.S. Futures Exchange

K

krazybar

WASHINGTON, Feb 4 (Reuters) - The U.S. Commodity Futures Trading Commission on Wednesday unanimously approved Eurex's application to set up an exchange in the American market that will provide direct competition to the Chicago Board of Trade.

The CFTC's three commissioners backed Eurex's plan to set up its U.S. Futures Exchange, or USFE, which will trade contracts on U.S. Treasury securities that are identical to ones that comprise 80 percent of volume on the Chicago Board of Trade.

Eurex's USFE plans to open on Feb. 8.

CFTC staff had recommended approval, dismissing concerns raised by the CBOT and the Chicago Mercantile Exchange (nyse: CME - news - people) that Eurex's U.S. Futures Exchange would be operated by a "foreign entity." Staff said that did not "provide any basis for not designating the USFE as a contract market."
 
Eurex US to start on February 8
CFTC approves Eurex US as a designated U.S. contract market/
Ferscha: Important step towards a truly global derivatives market on the Eurex network


Chicago, Feb 04 2004
The international derivatives market Eurex today confirmed the February 8 date for the start of trading on its new all electronic U.S. exchange Eurex US, following the Commodity Futures Trading Commission's (CFTC) designation of the exchange as a U.S. contract market.

"We are more than delighted with the Commission's decision to approve Eurex US today. Our U.S. market will start on February 8," said Rudolf Ferscha, CEO of Eurex. "This is an important step towards a truly global derivatives market on the Eurex network. Together with our customers, our new U.S. equity partners and international regulators we will work towards the goal of global connectivity with choice of trading and clearing. Eurex US will be bringing a new market model into the States, creating new trading and clearing opportunities for our customers worldwide and a level playing field in the U.S. futures industry for the first time. We are grateful for the tremendous support we have seen from the U.S. futures industry so far and look forward to working closely with them in the future. Eurex particularly appreciates the Commission's efforts in bringing its consideration of the application to a timely conclusion," he said.

Eurex US, located in and operating out of Chicago, will begin trading at 7 pm CST on February 8 and will initially offer trading in futures and options on 2-, 5- and 10-year Treasury notes and on 30-year Treasury bonds. All Eurex US products will be cleared by The Clearing Corporation in Chicago.

According to Eurex US all technical and operational launch preparations have been completed. Over 100 customers have completed the simulation process.Thirty six market participants have signed up for the market maker program.
 
I haven't followed the development of this story too closely, but it seems kind of comical.

The EUREX is going to open in Chicago and offer trading in US TRSYs, and the CBOT is going to offer trading in the EURO Bund.

Maybe McDonalds will start offering sushi, and Hatsuhana will start flipping cheeseburgers.

Wouldn't that be special!

:cool:

sax
 
18 March 2004 – The Eurodollar on LIFFE CONNECT ®

Euronext.liffe announces the launch of its Three Month Eurodollar Futures and Options Contracts on LIFFE CONNECT ® - the most advanced and widely distributed electronic derivatives trading system in the world.

For the first time, all the benefits already enjoyed by customers trading over a million STIR contracts everyday on LIFFE CONNECT ®, including EURIBOR, will now be available to the Eurodollar market.

The Eurodollar market on LIFFE CONNECT ® will offer you:

• A single, transparent and anonymous market place – with all users having equal access to all market information.

• Directly accessible from around the world – 650 sites in 26 countries across five continents

• Efficient – LIFFE CONNECT ® not only provides for the trading of complex STIR strategies, but also allows traders to be simultaneously active in many more delivery months and strategies than traditional floor based trading.

• Proven – LIFFE CONNECT ® already hosts the largest and fastest growing electronic STIR contract in the world – EURIBOR.

• Cost Effective – Trading on LIFFE CONNECT ® offers the opportunity to eliminate many of the peripheral costs associated with traditional floor trading, also Euronext.liffe exchange fees for Eurodollars will be very competitive.

• Capital Efficient – Cross margining will be available between all STIR products on LIFFE CONNECT ®, including Eurodollars and EURIBOR.

The Derivative Event of the Year!

Want to find out more? If you would like to find out more about Euronext.liffe's Eurodollar contract, please visit our website and request your free information pack and register for our Eurodollar eNewsletter.

www.liffe.com/eurodollar
 
Quote from RSPhoenix:

18 March 2004 – The Eurodollar on LIFFE CONNECT ®

Euronext.liffe announces the launch of its Three Month Eurodollar Futures and Options Contracts on LIFFE CONNECT ® - the most advanced and widely distributed electronic derivatives trading system in the world.

For the first time, all the benefits already enjoyed by customers trading over a million STIR contracts everyday on LIFFE CONNECT ®, including EURIBOR, will now be available to the Eurodollar market.

The Eurodollar market on LIFFE CONNECT ® will offer you:

• A single, transparent and anonymous market place – with all users having equal access to all market information.

• Directly accessible from around the world – 650 sites in 26 countries across five continents

• Efficient – LIFFE CONNECT ® not only provides for the trading of complex STIR strategies, but also allows traders to be simultaneously active in many more delivery months and strategies than traditional floor based trading.

• Proven – LIFFE CONNECT ® already hosts the largest and fastest growing electronic STIR contract in the world – EURIBOR.

• Cost Effective – Trading on LIFFE CONNECT ® offers the opportunity to eliminate many of the peripheral costs associated with traditional floor trading, also Euronext.liffe exchange fees for Eurodollars will be very competitive.

• Capital Efficient – Cross margining will be available between all STIR products on LIFFE CONNECT ®, including Eurodollars and EURIBOR.

The Derivative Event of the Year!

Want to find out more? If you would like to find out more about Euronext.liffe's Eurodollar contract, please visit our website and request your free information pack and register for our Eurodollar eNewsletter.

www.liffe.com/eurodollar
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Is this essentially the same contract that is traded by the CME and SIMEX? I've never traded Eurodollar anywhere else but would love to see this market go electronic.
 
Quote from saxon:

I haven't followed the development of this story too closely, but it seems kind of comical.

The EUREX is going to open in Chicago and offer trading in US TRSYs, and the CBOT is going to offer trading in the EURO Bund.



sax
More...
Is that not good? Or is this coincidence: CHICAGO, February 3, 2004 — The Chicago Board of Trade (CBOT) announced today that effective February 1, 2004, the exchange will reduce exchange transaction fees for all customers electronically trading CBOT U.S. Treasury futures and options on futures products
 
Quote from roberk:

Is that not good? Or is this coincidence: CHICAGO, February 3, 2004 — The Chicago Board of Trade (CBOT) announced today that effective February 1, 2004, the exchange will reduce exchange transaction fees for all customers electronically trading CBOT U.S. Treasury futures and options on futures products
More...

No doubt the lower rates are a direct response to EUREX US. It will be interesting to see how much volume these "new" products do. I'm just sceptical that either one (CBOT EuroBund, or EUREX Trsys) will last. Seems like more of a pissing contest than anything else.

Time will tell.

saxon
 
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