Eurex US officials insisted the exchange was in the right
place with the right price to launch currency futures on 23
September (see FO Week Vol 10 No 24). Eurex has priced
its futures contracts at a substantially lower rate than
Chicago Mercantile Exchange (CME), which holds the largest
market share in FX futures, setting up a new battle for
exchange traded FX.
Eurex also hoped to compete with the OTC market, which has
continued to dominate the FX universe.
Satish Nandapurkar, president and CEO of Eurex US, told
FO Week that his exchange was in a good position to
attract volume to its platform because the global FX market has
continued to grow. Bank for International Settlements estimated
that the FX market hit $1.9tr in daily turnover in 2004, up
from $1.2tr the previous year. Europe represented an estimated
54% of that volume, Asia 23% and North America 21%.
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