Chicago Mercantile Exchange (CME)'s dominance in the
Eurodollar market is not under serious threat from Euronext
Liffe's imminent entry (see front page), market participants
said last week. In fact, some expressed the belief that Liffe
is not even targeting CME but taking a longer-term strategic
position in relation to Eurex.
Jerome Kemp, head of European futures and options at JP
Morgan Securities, told FO Week: "I don't think this
is about Liffe taking on Chicago, I think it's Liffe taking on
Eurex. If Eurex US does succeed with the treasury bond complex
- and that's a pretty big assumption at this point - the next
obvious point of entry for them in the US is the Eurodollar
complex. That would position Eurex very well for adding the
last link in the chain, Euribor."
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