(Reuters) — NYSE Euronext will launch its long-awaited challenge to CME Group Inc.'s lucrative Treasury futures franchise on March 21, it said on Wednesday.
The launch highlights the importance of the derivatives business to the operator of the world's best known stock exchange, which agreed last month to be taken over by Germany's Deutsche Boerse. The combination would dominate European futures trading, even as NYSE tries to win a foothold in U.S futures, where CME is the biggest player.
Regardless of the ultimate winner in the U.S. market for rates futures, it is already clear the battle could dramatically pare traders' costs.
NYSE's co-owned clearinghouse, New York Portfolio Clearing, will use a cross-margining arrangement with its co-parent, the Depository Trust and Clearing Corp, to slash costs for traders who buy and sell in the cash and the futures market at the same time.
CME, whose Chicago Board of Trade and Chicago Mercantile Exchange units have dominated interest-rate futures since they invented them decades ago, is maneuvering to keep its franchise. On Monday, it put forth a plan to offer cross-margining and save traders money.
CBOT has successfully fended off several challenges to its interest-rate futures business over the years.
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