Yesterday NYSE Liffe US’s GCF Repo Index futures suite got off to a solid start with over 2,500 contracts changing hands across the suite. William Mitting looks at the potential of the contracts and the challenges ahead.
One doesn’t have to do more than glance at the
financial pages of any of major newspaper today to realise that
something is seriously wrong with Libor.
The gathering storm over the rate fixing that appeared to
have been common practice among many banks at least as far back
as 2005 finally broke on June 27 as the FSA handed a
£290m fine to Barclays.
Coinciding with one of the wettest summers on record in
London, the Libor storm looks set to continue to rage for many
months with others being caught in the deluge.
In many ways, the scandal could not have come at a better time
for NYSE Liffe US, which yesterday launched a series of futures
on the GCF Repo Index, the DTCC complied weighted average index
of interest rates paid in general collateral finance repos by
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