ParisBourse SBF SA Improves Specifications for the 3-month Euribor Contract

To better meet participants' requirements, ParisBourse SBF SA is cutting the trading tick for the short-term 3-month Euribor future from EUR 12.50 or 0.005% of par to EUR 5 or 0.002%. The change will take effect from September 14. It is designed to allow end clients to fine-tune hedging in current conditions marked by low volatility of short-term interest rates. ParisBourse SBF SA, the front-runner for electronically traded Euribor derivatives, has applied market-making procedures to back liquidity of this future since October 1998. Market-makers undertake to offer prices at all time on all deliveries as well as strips, guaranteeing market depth of 2,000 lots in a narrow bid/ask range for maturities up to one year. The Globex® alliance connection to the Chicago Mercantile Exchange, soon to be rounded out with a link to the Singapore Mercantile Exchange (Simex), as well as the Euro Globex® alliance with Meff in Spain and Miff in Italy, have enabled ParisBourse SBF SA to significantly extend the distribution network backing users of the 3-month Euribor contract traded on NSC. ParisBourse SBF SA matches orders on a first-in, first-out (FIFO) basis, an advantage for end clients since it encourages professionals to improve prices and speeds full execution of orders at the best limits.