LIFFE Appoints Designated Market Makers For Global Eurodollar Contract

The London International Financial Futures and Options Exchange (LIFFE), wholly owned by Euronext N.V, today announced market making support for the launch of its three-month Eurodollar futures and options contracts beginning 18 March 2004. The Designated Market Makers (DMMs) include US, European and Asian member firms and customers. The DMMs will ensure two-way competitive markets in both the futures and the options contracts.

Eurodollar Futures
For Eurodollar Futures contracts there will be two overlapping market making sessions each trading day, each lasting eight and a half hours. LIFFE has appointed seven DMMs in the first session and seven DMMs in the second session. Each DMM's commitments apply for a substantial proportion of the relevant market making session. These arrangements will ensure continuous pricing throughout the full trading day with a three-hour overlap to provide the tightest pricing during the period coinciding with the opening of US markets.

Eurodollar Options
LIFFE has appointed eight Eurodollar Options DMMs, each of whose commitments apply for a substantial proportion of the trading day.

Amanda Sudworth, Director of Interest Rate Products, said; "From 18 March, the Eurodollar will be available globally on LIFFE CONNECT®, the most advanced and widely distributed electronic derivatives trading system in the world. The Eurodollar will trade alongside our established short-term interest rate contracts, EURIBOR, Sterling, Swiss Franc and Yen, which trade over a million contracts a day.

"The appointment of a breadth of market makers demonstrates the support of the wider market for our Eurodollar offering. Their contribution will be important in providing tight pricing across the whole of the Eurodollar market."

A copy of the circular issued to members of the market on 5 March, which gives more details about these arrangements, can be viewed by clicking here.