Low volatility dampens Liffe performance
Euronext Liffe has revealed that it will be reducing the
marketing backing of its Eurodollar futures options.
Speaking at the exchange's half yearly results briefing,
Liffe CEO Hugh Freedburg said that the decision had been made
because volumes in open interest on the product had "not met
He continued, "We obviously recognise that we have
obligations to the market, but we are gradually scaling back
our marketing inputs to reach a point in which no negative
revenue is incurred from the Eurodollar."
The product has had a turbulent history since its
introduction in March last year. Initial speculation around
gaining regulatory approval meant that the launch date was not
widely anticipated and may have resulted in early low volumes
(see FO Week Vol 9 No 12). Eurodollar futures saw a
surge in August last year, reaching 100,000 in open interest
for the first time, but have since then seen a steady
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