Philadelphia Stock Exchange (PHLX) announced last week it will launch cash-settled futures and options on US Treasuries, in what some consider another challenge to Chicago Board of Trade (CBoT)'s interest rate complex.
PHLX announced that its futures exchange subsidiary Philadelphia Board of Trade (PBoT) will begin trading cash-settled futures on US Treasuries in January 2006. All futures contracts will track "on the run," US Treasuries for two-, three-, five-, ten- and 30-year maturities.
Options on ten-year notes and 30-year bonds will also be offered on PHLX with an estimated fourth quarter launch, pending regulatory approval.
PHLX executives have received some criticism and ridicule over the announcement of cash settled US Treasuries in the wake of failed efforts to grab market share by Eurex US and BrokerTec.
However, the exchange said the new interest rate contracts were not so...