Eurodollar

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Related to Eurodollars: Eurocurrency, Eurobonds, repurchase agreement, Federal funds

Eurodollar

Refers to a certificate of deposit in U.S. dollars in a bank that is not located in the U.S. Most of the Eurodollar deposits are in London banks, but Eurodeposits may be anywhere other than the U.S. Similarly, a Euroyen or Euro DM deposit represents a CD in yen or DM outside Japan and Germany, respectively.

Eurodollar

U.S. dollar deposits in banks outside the jurisdiction of the Federal Reserve; that is, outside the United States. Eurodollar futures contracts, which are based on eurodollar desposits, are a highly liquid investment traded on the Chicago Mercantile Exchange. Prices are determined by forecasting the three month USD LIBOR interest rate. Likewise, eurodollar sweeps are a popular short-term investment for large businesses.

The term has nothing to do with the euro, and the prefix "euro-" is used more generally to refer to deposits outside the jurisdiction of the local central bank, e.g. "euroruble."

Eurodollar

A dollar-denominated deposit made in foreign banks or foreign branches of U.S. banks. Depositors sometimes transfer their funds to European banks in order to take advantage of higher interest rates. The Eurodollar is one type of Eurocurrency.

Eurodollar.

Eurodollars are US currency deposited in banks outside the United States but not always in Europe. Certain debt securities are issued in eurodollars and pay interest in US dollars into non-US bank accounts. Eurodollars are a form of eurocurrency.

Eurodollar

see EUROCURRENCY MARKET.
References in periodicals archive ?
The new contracts will complement the existing suite of Eurodollar contracts and Eurodollar Packs and Bundles.
Despite their prevalence, Eurodollars are some of the least understood financial instruments.
Because the relationships between the different Eurodollar prices are highly dynamic, cointegration is key to determining optimal order placement," said Robert Almgren, Quantitative Brokers' co-founder and head of research.
In addition to the new spreads, CME Group will introduce options on Eurodollar futures calendar spreads.
5 /PRNewswire-FirstCall/ -- CME, the world's largest and most diverse financial exchange, today is celebrating the 25th anniversary of its benchmark interest rate futures contract, CME Eurodollar futures.
16 /PRNewswire-FirstCall/ -- To meet increasing global demand for electronic trading, CME, the world's largest and most diverse financial exchange, announced today that effective Sunday, February 19, 2006, for trade date Tuesday, February 21, it will launch several technology enhancements for trading CME(R) Eurodollar futures and options on futures on CME Globex(R), the exchange's electronic trading platform.
25 /PRNewswire-FirstCall/ -- CME, the world's largest and most diversified derivatives exchange, today reported record electronic options on futures contracts trading volume in its benchmark CME(R) Eurodollar interest rate product during the Wednesday, August 24 trading session.
OTC BB: ECTS), is seeking a European partner to help it establish banking connections in Europe to accommodate Eurodollar transfers.
The CME Eurodollar contract is the most actively traded futures contract in the world, trading an average daily volume of over 1.
This was the first time CME Eurodollars traded more than two million contracts electronically in a single day surpassing the previous record of 1.
With the added incentive of volume-based pricing tiers, we expect to generate increased interest in CME Eurodollars among global users of short-term interest rate futures products.
We continue to provide new technology that will create value-added benefits for our customers, such as the implied butterfly spread functionality we announced this week for trading CME Eurodollars.