Any thoughts on this?? ===== Eurex move on forex signals clash with CME By Jeremy Grant in Chicago Last Update:4:05 PM ET June 9, 2005 Eurex plans to offer foreign exchange futures contracts this year, as the Frankfurt-based derivatives exchange tries to boost its fledgling US operation and expand global distribution of its products. The move sets the stage for a battle between Eurex and the Chicago Mercantile Exchange in one of the world's fastest-growing derivatives contracts. The CME is the only exchange to offer trading in forex futures, aside from a small dollar index product at the New York Board of Trade. The plan is likely to signal the continued commitment to the US of Eurex's owners, Deutsche BÃ¶rse and the SWX Swiss stock exchange, in spite of management turmoil sparked by the recent departure of chief executive Werner Seifert as Deutsche BÃ¶rse chief executive. The new contracts would be listed on Chicago-based Eurex US but would be rolled out globally, market participants said. Eurex said: "We are always looking to expand our product offering." The exchange would offer futures on the euro, dollar, Swiss franc, yen and cross-currencies. "The ultimate purpose is to have a second choice," said a forex specialist at a European bank. Eurex launched its US futures exchange two years ago, offering US Treasury bond futures in competition with the Chicago Board of Trade but has so far failed to take market share. Eurex believes it stands a better chance against the CME because it will offer contracts worth $250,000 each, about double the size of contracts at the CME. This is likely to be attractive to investors such as hedge funds because it will require fewer contracts to be purchased to carry out big trades. Eurex is expected to announce its plan next week, with a launch in September. The CME last week said it would introduce a one-year incentive programme to attract big hedge funds and commodity trading advisers to its forex futures markets. Participants with more than $2bn in assets under management would qualify to trade CME forex products on the exchange's Globex electronic trading platform.