Chicago Mercantile Exchange (CME) has extended its mutual
offset system (MOS) agreement with Singapore Exchange (SGX) for
a further three years, a move seen as something of a reprieve
for the local market.
The MOS, which was originally signed in 1984 to allow
Eurodollar contracts initiated in one market to be closed out
in the other, had been up for renewal in October next year. The
agreement appeared to be under threat as CME introduced a host
of measures aimed at boosting volume on its Globex platform.
These included extended trading hours, a market maker scheme
for futures traded on Globex during non-floor trading hours and
reduced fees for trading Eurodollars on the system. To date,
Eurodollar futures only a trade a fraction of overall volume on
Globex. A record volume day in August resulted in Globex seeing
just 6% of total volume in the contract.
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