Euronext.liffe, the derivatives arm of the pan-European exchange, has responded to the challenge from rival Eurex in the short term interest rate market.

It plans to list a contract based on Eonia, the overnight benchmark. As Financial News revealed earlier this month, Eurex, the Swiss-German exchange, is planning to go head to head with Liffe in the short-term interest market with a number of moves including the launch of a one-month contract referenced to Eonia, the euro overnight index average.