Chicago Mercantile Exchange (CME) last week announced the
exchange's first move into the OTC market with an interest rate
trading and clearing deal with Tullett Liberty.
Under the deal, forward rate agreement (FRA) contracts,
which are essentially Eurodollar futures with flexible daily
expiration dates, will be traded on Globex and then cleared
through the CME clearinghouse. CME and Tullett will start with
a US dollar-denominated three-month FRA contract. Plans are to
introduce one- and six-month FRA contracts, extend the number
of trading days and add FRAs in other currencies such as euro
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