The CME Eurodollar futures contract reflects the London Interbank Offered Rate (LIBOR) for a three-month, $1 million offshore deposit. The contracts are often used as a means to take a view on Federal Reserve interest rate policies. They have long served as a benchmark interest rate for corporate funding.
Eurodollar futures, developed and launched by the Chicago Mercantile Exchange in 1981, were the world's first cash-settled futures contracts. Eurodollar futures and options are the most actively traded futures contracts in the world. The bulk of their volume is transacted on CME Group.
On March 21 of 2011, NYSE Liffe US launched Eurodollar futures. Options on these futures were expected to be launched in fourth-quarter 2011.l The launch coincided with the launch of New York Portfolio Clearing (NYPC), its clearing joint venture with DTCC.