Although neither side is commenting at this stage, there is
a palpable air of tension surrounding negotiations between CME
and SGX over their mutual offset arrangement. With both
exchanges releasing timely Eurodollar volume record
announcements, CME has wheeled out the big guns, slashing
trading costs on Globex and initiating an out-of-hours market
If Globex trading of Eurodollars picks up as CME intends, it
would not be difficult to argue that the mutual offset had
outlived its usefulness to the Chicago exchange. Certainly, the
larger firms will be well equipped to transfer their volume
onto Globex, and would be unlikely to shed too many tears over
letting their SGX floor teams go.
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