Frankfurt-based Eurex launched its US initiative on February 8 in direct competition with the Chicago Board of Trade and its benchmark US Treasury bond and note futures contracts. Trading volumes have to date been low, but Eurex US is awaiting Commodity Futures Trading Commission approval for an international clearing link between its European and North American operations, which it hopes will improve its competitive position. It also intends to expand its offerings to include trading in futures and options on Euro-denominated interest rate products and European and US equity indexes.
Eurex US said 2,200 traders can now access its trading system from a number of countries other than the US, including Germany, Switzerland, Sweden and the UK. It added, however, that formal recognition of Eurex US by the UK’s Financial Services Authority is still pending, although British companies can still trade on the basis of an ‘overseas persons exclusion’ rule.