Euronext Liffe's decision to widen its softs product suite
by launching a raw sugar contract will pit it in a three horse
race for marketshare with New York Mercantile Exchange (Nymex)
and New York Board of Trade (Nybot), also competing for volume
and liquidity. Some observers even predicted that the contract
could find itself moving out of the Big Apple for the first
Observers suggested that it would be a tight battle between
at least two of the exchanges with each exchange holding
"I think Liffe has an advantage over the New York exchanges
given the distribution it has with existing softs clients on
Connect, which is wider than Nybot's system and more
established than Nymex's softs, which have yet to gain any real
business," said one source. "Nybot has the benefit of the
incumbent contract with volume and open interest. I think Nymex
are going to struggle against those two."
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