Offset and match

Although neither side is commenting at this stage, there is a palpable air of tension surrounding negotiations between CME and SGX over their mutual offset arrangement. With both exchanges releasing timely Eurodollar volume record announcements, CME has wheeled out the big guns, slashing trading costs on Globex and initiating an out-of-hours market making programme.

If Globex trading of Eurodollars picks up as CME intends, it would not be difficult to argue that the...