The Once-Mighty Eurodollar Futures Contract Fades Away
- Most traders have already migrated to SOFR futures and options
- Remaining eurodollar contracts will be converted on Friday
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A cornerstone of the US interest-rates market for a generation of traders will mostly cease to exist after Friday.
As part of the long-planned transition away from the scandal-plagued London interbank offered rate borrowing benchmarks, derivatives linked to them will also be phased out. That means that eurodollar futures and options — for decades the bread and butter of those wagering on Federal Reserve decisions or hedging moves in short-term interest rates — will soon be gone.