Philadelphia Stock Exchange (PHLX) last week expected to launch its Philadelphia Board of Trade (PBoT) subsidiary on 6 October, opening with a new daily maturity futures product on British Bankers' Association (BBA)'s Libor reference rates.
Through an exclusive agreement between BBA and PBoT associate Derivative Designs, the new exchange was to offer a line of short-term interest rate futures products based around Libor. The first product listing was to be daily expiry dollar BBA Libor futures with the initial listing of a daily maturity for every business day the US Federal Reserve is open out to 11 and a half years - amounting to about 3,000 maturities for the product. Contracts would be cleared at Options Clearing Corporation (OCC).
Todd McCormick, a founding partner of Derivative Designs and a managing director at Fimat, told FO Week that the contracts would allow comparable OTC Libor contracts...