Liffe, the London-based derivatives market, has reported the first trades of a futures contract based on an alternative to the benchmark London interbank offered rate, a month after it revealed plans to launch the derivatives in response to growing doubts over the validity of Libor.
NYSE Euronext-owned Liffe said 368 contracts based on the one-month euro overnight interbank average, or Eonia, traded yesterday, with a total notional value of â¬796m ($1.2bn). Eonia, published by the European Central Bank, is the average of all overnight unsecured lending transactions by 44 banks in the euro interbank market.
