Wilhelm Brandt of the DTB said: 'The agreement is not against Liffe, it is for European trading. We want to give investors a signal that we are pushing all the European liquidity into one market.'
Matif members will gain access to DTB's German government bond contracts, called Bunds, and medium-term government bond products, known as Bobls. DTB members will have access to Matif's ecu bond futures and options.
Liffe already trades a more successful Bund contract than the DTB, and is launching a Bobl contract next week.
Traders on Liffe said yesterday that the move looked like a defensive measure by DTB and Matif to shake London's lead.
But Liffe's new chief executive, Daniel Hodson, said: 'We believe its effect will be to enhance the markets and benefit the end-user, and that will benefit us.'Reuse content