Press

Eurex, the European derivatives market, wants to focus exclusively on the Euribor as the reference interest rate for money-market derivatives in the future. The development in turnover clearly speaks in favor of the Euribor, as the exchange stated in Frankfurt. For this reason, trading in the three-month Euro-Libor future will be discontinued at mid-year if no more open positions exist in the contract. In the future, the Eurex money-market derivatives will be focused on the one-month and three-month Euribor future as well as the option on the three-month Euribor future. This will concentrate the liquidity, Eurex said.

On January 13, 1999, the Euribor future launched by Eurex on September 18, 1998 achieved volume of about 30,000 contracts traded, posting a new record high. At the same time, the open interest rose to its highest level of more than 80,000 contracts. With a total volume of about 550,000 contracts traded since the launch, Eurex has captured the leading position in the trading of derivatives on the Euribor, the new European benchmark reference rate. In addition to active support from 11 Designated Market Makers who are also trading the Euribor derivatives at Eurex as Euribor panel members, the positive trend in Euribor contracts is mainly attributable to the overwhelming success of the reference rate itself. Its function as the leading reference rate for money-market transactions and over-the-counter derivatives trading in Euroland was already clear at the beginning of the year.

To promote trading in Euribor products, the transaction fees will continue to be waived, as previously announced, up to and including March 15. Eurex is also waiving fees until the end of the year for Eurex participants who have traded at least 150,000 contracts in three-month money-market futures by March 15, 1999.