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Eurex US ready for FX price war


Futures Commissions Merchants (FCMs) and trading firms have welcomed Eurex US's efforts to establish its FX futures business (see FO Week Vol 10 No 24) and a new price war with Chicago Mercantile Exchange (CME) that some predicted may follow.

Meanwhile, sources backed Eurex's claims to have been hampered in its attempts to get its US exchange off the ground by dubious measures from incumbent exchanges, condoned by regulators.

One trading firm source told FO Week, "I think what underlies this is the regulatory environment; it seems that the things that Eurex US want to do have been inhibited by moves by CBoT [Chicago Board of Trade] and CME that are of questionable legitimacy."

Eurex and Eurex US executives announced on 16 June plans to launch a series of ten FX futures contracts on 23 September on the Eurex US trading platform. They touted a new pricing...

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