CME Group, operator of the largest US futures exchange, has launched a pre-emptive strike against rival exchange operator NYSE Euronext by slashing the cost of trading its two flagship futures products in a bid to undermine similar plans by its New York rival.
The move comes less than two weeks after NYSE Euronext and Deutsche Börse unveiled plans to combine, creating what would be the world’s largest exchange.
NYSE Euronext’s futures arm, NYSE Liffe, is only weeks away from launching a challenge to the CME’s near monopoly of trading in interest rate futures, known as eurodollars and one of the most widely traded derivatives contracts in the world.