NYSE Removes Option Trading Fees

The latest good finance news is the waiver of exchange fees for some of the contracts related to short-term interest rates options to boost up the trade. This has been declared by the Liffe derivatives market of NYSE Euronext and is reported in Bloomberg.Trading options contracts for new customers that is based on Euribor or the rate offered by Euro Interbank for three month (based in turn on London-based exchange) will not be required to pay fees for around next six months or for first million trades done. This was stated by Paul MacGregor, who is the director of Liffe’s fixed income, today in an interview. Apart from this, Options contracts of mid- curve and interest rates options of Short Sterling for three months and also valid to avail this offer according to him.

The trend shown by lower trading on exchange derivatives was being bucked by the growth of one of the products and it calls for an encouragement as told by MacGregor. Keeping this in mind, he declared that Liffe has new incentives for those who never experienced the trading of interest-rate options on Liffe ever before. It is expected that this might appeal to asset managers, hefge funds and to those who are not active users of Euribor Options.

Among the derivatives market in Europe, Liffe is the second largest and as global drop is noticed in derivatives trading on exchanges, it decided to offer these incentives. According to MacGregor, one of the main reasons for the growth of Euribor Options Contracts trading is it’s being a way for the investors to hedge themselves against the rise of interest rates from Central banks in future.

The offer is open for registration by new customers from 1st of September to 31st of December. Liffe said that the mid-curve or one-year trading of Euribor Options Contract has shown a growth of 93 percent for a period of year-to-date. Also as reported by exchange, so far in this year about 9.5 million lots of the contracts are traded in comparison to 4.9 million lots in the year 2008.