Project Rainbow

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Project Rainbow is the working title of a proposed new European-based derivatives trading platform, backed by some of the largest banks and brokerages.[1]

The initiative is among a host of moves by the largest brokerages – including Project Turquoise in Europe and the Electronic Liquidity Exchange in the US - to secure lower-cost trading in cash equities and derivatives. Project Rainbow’s backers include Barclays, Deutsche Bank, Goldman Sachs, JPMorgan and UBS, as well as MF Global and Newedge.

Project Rainbow is targeting short-term Euribor and sterling interest rate contracts, currently amongst the most heavily-traded products on the Liffe platform controlled by NYSE Euronext. Jean-Francois Theodore, deputy chief executive at Liffe, has contended that the exchange's technology and years of experience would help it to defend itself against the upstart when it launches.[2]

The Project Rainbow initiative has yet to reveal a technology provider or name an executive team, but is negotiating with LCH.Clearnet for clearing services.

References

  1. Europe Banks to Launch Derivatives Platform. Financial Times.
  2. Liffe Claims Technology Will Defend Against Project Rainbow. ComputerworldUK.