The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Debt Market round-up: LIFFE’s long shot

Euronext.liffe makes an attempt to regain a foothold in derivative futures trading at the long end of the European bond curve this month when it launches a new range of bond futures based on the whole eurozone and the largest eurozone countries – Germany, France and Italy.

Unlike a classic bond future, which entails physical delivery of an underlying at the settlement date, the products Euronext.liffe has created include several total return futures contracts based on the EuroMTS government bond indices.

Dealer-to-customer cash bond trading in the government sector is dominated by EuroMTS, so if the futures contracts attracted liquidity they could provide a powerful hedging or speculative tool for dealers and other market participants.

However, eurozone bond futures liquidity currently resides with the Eurex Bund contract. It is used by all market participants that want to trade the long-end of the euro interest rate curve. Attracting liquidity off one exchange to another has been all but impossible in recent years, although those with longer memories will recall that Liffe once dominated all futures trading in Europe but effectively lost the Bund contract to Eurex just under 10 years ago when the latter embraced electronic trading first.

For many years, some in the non-German eurozone bond trading community have complained that the Bund future is inadequate for their needs. Now it appears that their prayers have been answered. Furthermore, a total return futures index also addresses typical problems around futures trading such as squeezes of the cheapest-to-deliver bond.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree