A year ago, Eurex launched its US exchange as part of its plan to create a global market with trading and clearing choice on two separate exchanges. FO Week asked five industry figures what has gone right and wrong for Eurex US in what many have viewed as a disappointing first year. Interviews by Jim Kharouf and Elliott Aykroyd
Eurex US was launched as a lower cost exchange that
would compete on price with Chicago Board of Trade (CBoT) and
bring a new market structure to participants. Why have volumes
not taken off?
Sonny Schneider, chairman, Schneider Group:
Specifically because CBoT rose to the challenge, potentially
unexpectedly, and so the disincentive to move coupled with
inertia meant the business stayed on CBoT.
Cynthia Zeltwanger, president and ceo, Fimat
USA: It's clearly more of a story about what CBoT did
to knock off the competition rather than what Eurex US did not
do. Volumes haven't taken off because CBoT responded.
James Ashley, director, global futures,
HSBC: Firstly CBoT changed its fee structure to hang
on to the market share, secondly they launched too early and
thirdly they have not properly consulted their client base.
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