Som of Europe’s largest investment banks are set to launch a new trading platform for financial derivates in a bid to challenge the hegemony of the established bourses, it has been reported.
The plan, which is codenamed Project Rainbow, will initially offer trading in two key contracts, the short-term interest rates in sterling and in Euribor, the Financial Times reports.
It is hoped that the exchange will cut costs for trading and prove a competitor to Liffe where most of the trading of these futures is enacted.
Backing for the plan has come from Goldman Sachs, Deutsche Bank, JP Morgan, MF Global, NewEdge and UBS.
Project Rainbow follows a similar model to Project Turquoise, the bourse which was initially intended to be in operating by November last year, but which has been hit by delays.
Testing for Project Turquoise is now anticipated to begin around June this year, with summer pencilled in as its official launch.
