Eurex Discontinues Trading in Jumbo Pfandbrief Futures

Eurex, the European derivatives market, is suspending trading in the DEM and Euro jumbo Pfandbrief futures, effective March 1, 1999. Trading in the products will be blocked for all contract months until the final delisting, since there are no more open positions. Turnover in the jumbo Pfandbrief future, which had a very successful start, had been on the decline in recent months. Eurex regards this as mainly the result of a weak repo market and strong competition from the extremely liquid BOBL future. If the prerequisites needed for the launch of a derivative on the jumbo Pfandbrief market to be successful are developed at some point in the future, there is definitely potential for such a product to be reintroduced at Eurex.