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POMPATIS,
> Do any of you know when the common european currency goes into effect?
>
> Also, I reckon that this means the end for trading the likes of the Dmark,
> Swiss and French Frank, the Lira, etc. This takes away many tradable markets.
> To me, this is no small thing. What about the new currency, are there any
> plans for a futures contract? How does this effect european bond markets (the
> way they are denominated)?
1. Basically after 1/1/99 there won't be fluctuations between the EURO Currencies: that
is that the exchange rate between (say) DEM and XEU shall be fixed for ever. The same
being true for all EURO Currencies trading DEM or ITL against USD shall be the same, and
trading DEM against ITL shall be meaningless.
2. Swiss Franc doesn't belong to the disappearing currencies. Nor does Puond, Swedish
Krona, Greek Drachma. DEM, ITL, PTA, FFR, amongst others, do belong.
3. Speaking about futures the CME has already introduced an ECU/EURO contract. Actual
volume equals zero, but traders' interest shall grow. All in all, considering that
French FRanc trades with low volume futures traders should not miss a big opportunity.
4. Bonds shall pay interest in EURO and shall be reimbursed in EURO.
Alberto Torchio
Torino, Italy
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