The derivatives exchange chiefs, brokers and regulators are about to gather in Florida on Wednesday for the 50th anniversary of the Futures Industry Association in order to disscuss the previous year initiated to open a new era of compatition.

Eurex, the Frankfurt-based branch of Deutsche Bцrse, took initiative in February 2004 with its assault on the Chicago Board of Trade’s Treasury futures complex.

Euronext. Liffe launched a eurodollar contract to rival the Chicago Mercantile Exchange’s flagship eurodollar offering Part of the CBOT’s response to Eurex was to shoot back with its own versions of the Bund, Bobl and Schatz German government bond futures, reported Jeremy Grant. Then, last October, the exchange promoted domestic US rivalry by launching gold and silver futures as competitors with the New York Mercantile Exchange.

Nevertheless none of these initiatives has come up to expectations. Eurex US’s share of the Treasury futures market makes only 1-2 per cent, with Euronext-Liffe hardly reaching a eurodollar share of 2-4 per cent. The CBOT’s Bund, Bobl and Schatz initiative has vanished without trace.

John Damgard, FIA president, commented the situation: "It is true that the efforts of the challenger markets to date have not been successful in doing more than chipping away at the entrenched markets’ dominance."

The only beneficiaries so far have been market users, who have faced trading and clearing fees decline dramatically.

Charlie Carey, CBOT chairman, stressed considered it to be an inappropriate time to write off the gold and silver products. He would give them "another six months to a year".