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DERIVATIVES TRADING
Eurex U.S. is an audacious move given the Chicago Mercantile Exchange and the Chicago Board of Trade's market dominance. Ugly? Yes. Surprised? Hardly. BY KAREN KREBSBACH
Forget Cubs fans' lingering depression over Steve Bartman's pennant-grabbing interference at Wrigley. The deepest hostility in Chicago these days is over Eurex's attempt to muscle into a derivatives market dominated by the Chicago Mercantile Exchange and the Chicago Board of Trade. And this slugfest promises to only get uglier.
On February 1. the Swiss-German exchange plans to launch the allelectronic Eurex U.S., which will list two-, five-, 10- and 30-year U.S. Treasury futures and options contracts-identical to those traded at the CBOT. It will also offer two-, fiveand 10-year contracts on euro interest rates, futures on the European indices DAX and Dow Jones Euro STOXX 5OSM. all European products also will continue to be traded on Eurex's European platform.
Announcing the $46.7 million launch was the easy part. The next is thornier: Eurex plans to use The Clearing Corp., CBOT's former partner, for clearing and settlement services. A JPMorgan report estimates Eurex U.S....