Contract "not in competition" with CME, Euronext Liffe STIRs
Philadelphia Stock Exchange (PHLX) last week expected to
launch its Philadelphia Board of Trade (PBoT) subsidiary on 6
October, opening with a new daily maturity futures product on
British Bankers' Association (BBA)'s Libor reference rates.
Through an exclusive agreement between BBA and PBoT
associate Derivative Designs, the new exchange was to offer a
line of short-term interest rate futures products based around
Libor. The first product listing was to be daily expiry dollar
BBA Libor futures with the initial listing of a daily maturity
for every business day the US Federal Reserve is open out to 11
and a half years - amounting to about 3,000 maturities for the
product. Contracts would be cleared at Options Clearing
Todd McCormick, a founding partner of Derivative Designs and
a managing director at Fimat, told FO Week that the
contracts would allow comparable OTC Libor contracts to be
hedged on PBoT.
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