A research report published last week offered cautious
support to Euronext Liffe's forthcoming E19m Eurodollar launch,
as both Liffe and Chicago Mercantile Exchange (CME) announced
further Eurodollar initiatives.
The Lehman Brothers report concluded that, "Although further
analysis of the market potential is required, the Eurodollar
plan appears to us to be ex ante a worthwhile exercise."
Liffe estimates the launch would cost E19m, consisting of an
E8m incremental impact on profit and E11m increase in capital
While Liffe did not wish to comment on the report, Lehman's
analyst, Joanna Nader, explained that the figure may be
inflated by the nature of the Eurodollar contract and its
listing. She said, "If they were just adding another contract
to their European range it would be a bit of a different
exercise to the Eurodollar, which is targeting US participants
- it's a slightly different animal.
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