A research report published last week offered cautious support to Euronext Liffe's forthcoming E19m Eurodollar launch, as both Liffe and Chicago Mercantile Exchange (CME) announced further Eurodollar initiatives.
The Lehman Brothers report concluded that, "Although further analysis of the market potential is required, the Eurodollar plan appears to us to be ex ante a worthwhile exercise."
Liffe estimates the launch would cost E19m, consisting of an E8m incremental impact on profit and E11m increase in capital expenditure.
While Liffe did not wish to comment on the report, Lehman's analyst, Joanna Nader, explained that the figure may be inflated by the nature of the Eurodollar contract and its listing. She said, "If they were just adding another contract to their European range it would be...