The Chicago Board of Trade (CBOT) has responded to the assault on the US market by rivals Eurex by unveiling plans to offer German government bond futures. CBOT has also announced cuts in trading fees. The announcements coincide with the 8 February launch of Eurex US, which will offer US treasury futures.
CBOT says it will be the first exchange in the world to offer cash-settled Bund, Bobl and Schatz futures. “As the world’s largest market for U.S. Treasury futures and options on futures, the CBOT welcomes the opportunity to serve its customers by expanding its contract offerings to include German debt futures,” says CBOT Chairman Charles P. Carey. “After extensive research and conversations with market users, the CBOT has designed German debt contracts that provide better risk management tools, with features including enhanced settlement procedures. What is more, Bund, Bobl and Schatz futures are a natural fit for trading alongside the CBOT’s deep and liquid U.S. Treasury products.”