Winds of change

Introduction

In equities, both retail and institutional clients have been active. But thereal action is in rates, spurred by portfolio and asset-liability managers’ repositioningafter the Fed’s 25 basis point rate cut in June, combined with strong continuingbusiness from mortgage hedgers and swap and swaptions dealers (seearticle).

All is not smooth sailing, however. The Chicago exchanges are watching with sometrepidation Eurex’s plans to bring its dynamic electronic model to theUS markets. Old Chicago