Eurex US officials insisted the exchange was in the right place with the right price to launch currency futures on 23 September (see FO Week Vol 10 No 24). Eurex has priced its futures contracts at a substantially lower rate than Chicago Mercantile Exchange (CME), which holds the largest market share in FX futures, setting up a new battle for exchange traded FX.
Eurex also hoped to compete with the OTC market, which has continued to dominate the FX universe.
Satish Nandapurkar, president and CEO of Eurex US, told FO Week that his exchange was in a good position to attract volume to its platform because the global FX market has continued to grow. Bank for International Settlements estimated that the FX market hit $1.9tr in daily turnover in 2004,...