Eurodollar futures

Eurodollar futures

A futures contract written on a Eurodollar deposit. The contract locks in an interest rate in the future and is cash settled.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
References in periodicals archive ?
Before moving back to Little Rock, Bailey was a member of the Chicago Mercantile Exchange where he traded his own account in Eurodollar futures. He also dabbled in buying, renovating and selling properties in the Chicago area.
Chicago Eurodollar futures tell me the Fed Funds rate will rise 50 basis points with 25bps hikes in both the September and the December FOMC.
We have a large portion of our net interest spread exposure to higher short-term interest rates hedged through interest rate swaps and Eurodollar futures. We believe our diversified investment portfolio will help cushion the impact of a move higher in rates.
The money will go to proposed classes consisting of anyone who traded in Eurodollar futures on exchanges, including but not limited to the Chicago Mercantile Exchange, between 1 January, 2003 and 31 May, 2011.
Eurodollar futures are financial market contracts that pay off based on the value of the LIBOR at a given point in the future.
Eurodollar futures volume averaged 3.2 million contracts per day, up 6 percent compared with January 2015.
Eurodollar futures, the world's most actively traded short-term interest-rate contract, are underestimating the pace of tightening over the next two years, according to 55 per cent of 56 economists in the June 12-16 survey.
The first factor (target or timing) is closely related to current-month federal funds futures surprises, while the second factor (level or path) correlates strongly with 1-year eurodollar futures (i.e., 1 -year-ahead policy expectations).
Investors also bid up Eurodollar futures on expectations that a drawn-out government shutdown and brinkmanship over the debt ceiling would keep the Fed from tapering its asset buying anytime soon.
Dollar LIBOR is the basis for the settlement of the three-month Eurodollar futures contract traded on the Chicago Mercantile Exchange (CME), which had a traded volume in 2011 with a notional value exceeding $564 trillion.