is there a US version of LIBOR?

This is a discussion on is there a US version of LIBOR? within the First Steps forums, part of the New Traders category; seems strange that the eurodollar interest rate contract at CME is based on Dollar Libor. Why don't they base it ...

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Old Jul 15, 2008, 6:33am   #1
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Default is there a US version of LIBOR?
seems strange that the eurodollar interest rate contract at CME is based on Dollar Libor. Why don't they base it on American banks rate?

short sterling is based on the bank rate in its home country. why don't the US do the same?
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Old Jul 15, 2008, 7:39am   #2
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Default Re: is there a US version of LIBOR?
Actually ICAP have recently introduced a competitor to LIBOR for the USD called NYFR for more or less the reasons you mentioned.

See http://www.icap.com/news/2008/icap-l...r-fixings.aspx
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Old Jul 15, 2008, 7:46am   #3
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Default Re: is there a US version of LIBOR?
Because London is the centre of the entire financial world, depite what the septics would have you believe
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Old Jul 15, 2008, 7:48am   #4
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Default Re: is there a US version of LIBOR?
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Originally Posted by arabianights View Post
Actually ICAP have recently introduced a competitor to LIBOR for the USD called NYFR for more or less the reasons you mentioned.

See http://www.icap.com/news/2008/icap-l...r-fixings.aspx
I thought they introduced it as an opportunistic thing in direct response to the investigation in to alleged manipulation of the BBA daily fix by the clearers trying to do a bit of smoke and mirrors around their funding costs......

You know different?

curious

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Old Jul 15, 2008, 7:50am   #5
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Default Re: is there a US version of LIBOR?
GJ, by now you should have twigged I don't know anything
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Old Jul 15, 2008, 7:53am   #6
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Hardly
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Old Jul 15, 2008, 8:17am   #7
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Default Re: is there a US version of LIBOR?
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seems strange that the eurodollar interest rate contract at CME is based on Dollar Libor. Why don't they base it on American banks rate?

short sterling is based on the bank rate in its home country. why don't the US do the same?
Eurodollars are dollars on deposit (or for loan) outside the US. As such domestic US rates are not really appropriate - though obviously they influence. That's what LIBOR is all about. If you want to trade the US equivalent of short sterling then trade the T-Bill contract.
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Old Jul 15, 2008, 12:53pm   #8
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Default Re: is there a US version of LIBOR?
brut started this thread john, thanks. so t bill is the equivalent to short sterling.

am i correct in saying that the t-bill is a bond however? ie is the t-bill future an interest rate future or a bond future?
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