EONIA represents the average rate on unsecured overnight euro lending transactions in the interbank market. Since its introduction on 4 January 1999, EONIA has become a highly significant money market rate. Cash market deposits linked to EONIA average around €40 billion.
The One-Month EONIA futures contract will trade on LIFFE CONNECT™, the world's most advanced electronic derivatives trading platform, which offers unrivalled speed of execution and flexibility in trading. LIFFE CONNECT™ is the only trading system in the world able to support successfully trading in complex short-term interest rate products.
Simon Raybould, Managing Director of Sales and Marketing at Euronext.liffe said: "Euronext.liffe owns the short end of the yield curve, and our customers are looking to the Exchange to provide a complete range of trading opportunities in this area. The introduction of an exchange-traded EONIA based futures contract will provide the benefits of increased price transparency, ease of execution, and reduced credit exposure. The addition of a One-Month EONIA contract to complement the existing Three-Month Euribor contract will also provide customers with enhanced trading and risk management opportunities at the short end of the market."
