Press

Eurex, the new German-Swiss derivatives market, wants to launch a new product based on the Euribor (European Interbank Offered Rate) as a reference interest rate when the Euribor fixing is initiated. At the same time, the existing DTB products based on the Libor (London Interbank Offered Rate), the corresponding reference interest rate, will be converted into euros and kept in the product line-up. With that, Eurex will probably be the only derivatives exchange to offer its participants products on both interest rates. The introduction of the new product is due to the approval of the exchange council.

According to Eurex, the Euribor will be the most important reference interest rate for money-market transactions in euros. However, the Libor will probably still play an important role in this market, at least during a period of transition. Against this backdrop, parallel trading of the two products will give participants the maximum possible flexibility. Dr. Jörg Franke, chief executive officer of Eurex, commented that "the combination of the two products will give Eurex optimal positioning in the money-market products." Moreover, the listing of both products on one and the same exchange offers opportunities for spread and arbitrage trading.