Traders welcome exchange competition but attack regulators
Futures Commissions Merchants (FCMs) and trading firms have
welcomed Eurex US's efforts to establish its FX futures
business (see FO Week Vol 10 No 24) and a new price
war with Chicago Mercantile Exchange (CME) that some predicted
Meanwhile, sources backed Eurex's claims to have been
hampered in its attempts to get its US exchange off the ground
by dubious measures from incumbent exchanges, condoned by
One trading firm source told FO Week, "I think what
underlies this is the regulatory environment; it seems that the
things that Eurex US want to do have been inhibited by moves by
CBoT [Chicago Board of Trade] and CME that are of questionable
Eurex and Eurex US executives announced on 16 June plans to
launch a series of ten FX futures contracts on 23 September on
the Eurex US trading platform. They touted a new pricing scheme
for the contracts that undercuts both CME and OTC prices.
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