Through the gateway, TT customers can trade the exchange's benchmark three-month euro yen short-term
interest rate futures contract.
In the financial futures category we have a 3 month KIBOR
interest rate futures contract.
The newly launched
interest rate futures contract as well as the awaited introduction of a STRIPS market is expected to complete the width of products available to clients.
In addition, NYSE Liffe also extended the trading hours for its Euribor
interest rate futures contract in 2007, to incorporate the Asian trading day.
Fischer's remarks fuelled that sense of anticipation, though
interest rate futures contracts indicate that market is pricing in about 50/50 odds of an increase in December.
ICE Futures Europe launched Eris Euribor and GBP LIBOR
interest rate futures contracts in June 2015.
Table 1 reviews how the price of
interest rate futures contracts changed in reaction to major forward guidance announcements during the zero lower bound period.
Last month, India's central bank took action to reverse that, announcing it would introduce 10-year
interest rate futures contracts by the end of the year.
Before yesterday's decision traders were betting on at least a quarter point cut at the bank's next meeting in August, according to Bloomberg estimates based on
interest rate futures contracts.
Similarly, it is believed that yields on short-term
interest rate futures contracts might rise on speculation that policy makers would lift their overnight interest rate by 0.
Prices for US
interest rate futures contracts showed dealers scaling back bets on further rate cuts, implying no more than a 50-50 chance the Fed will lower rates again in December, down from a perceived 64 per cent on Tuesday night.
For more than a decade, trading volumes in these contracts remained miniscule in comparison with other
interest rate futures contracts, such as 3-month eurodollar and long-term Treasury securities.
