New !! CME Fed Funds-Eurodollars Exchange Spread

In the first half of 2018 the CME will be rolling out a Fed Funds versus Eurodollars exchange spread. This is very, very exciting news - I personally anticipate a great deal of commercial, institutional, and large spec interest.

I am providing a link below for you to register for the webinar, which will be held on Tuesday, November 28, 11:00-12:00 pm US Central time.

http://pages.cmegroup.com/index.php...KZm1CNG05WHBUeE5kd2VHWDl5TG8xRWJDMHFVUzJFIn0=

 

Hehe, you are very cute bone. You get so excited about new spread possibilities, like a dog getting a fresh new...bone? This post reminded me of how yesterday we got a new cow bone for our dog...Whenever he gets a new one he sits and gnaws on it for hours while ignoring everything around him.

 

You're so right - I popped wood the second this notice from CME appeared in my inbox.

 

It's not a new spread. The TED spread is probably the most watched IR spread in the world.

 

The ease of execution is the big deal. As Mav eluded to it neatly packages a very important spread into a singular consumer product basically. It's essentially unsecured bank credit versus unsecured commercial credit - important indeed.

 

New to the CME I guess then.

 

Well, most players in the OTC market did this in cash. Now the home gamers can get involved. So I agree with Bone, this is a great spread and I suspect it will be very popular. You might even like it Overnight!

 

Everyone involved in financing tracks this relationship - including the Fed.

 

Also known as LIBOR-OAS. I will make a prediction that it will be a spectacular failure

 

Very possible. The cash market really dominates this. But I think for a lot of people, it will at least make this spread easier to track and collect data on. I think another reason Sle you might be right is most of the large fixed income prop firms in Chicago have gone away. I'm still glad they are offering it.