FUTURES Attention back on P.C.P.s

Press, 3 July 1985, Page 36

FUTURES Attention back on P.C.P.s

The wool contract was slightly easier on its second day of trading on the Futures Exchange yesterday. Prices were slightly firmer than at the close on Monday. Volume was heavy, about 70 lots being traded. However, market attention was back on the interest-rate contracts. Prime commercial paper (bill) contract rates fell slightly, reflecting a slight firming of interest rates. The bill contracts are indicating an interest rate of about 22.5 per cent. Trading was heavy in the P.C.P. contract, with about 129 lots traded. The United States dollar contract was up, reflecting partly a steadying of the rise of the New Zealand dollar. Dr Brent Layton, of Marshall Futures, said the rise partly also reflected a higher forwardpremium on the foreign exchange market. Dr Layton said that the United States dollar contract in Sydney traded down slightly yesterday. The London International Financial Futures Exchange (LIFFE) has announced that it will look to begin trading a

contract based on the European Currency Unit (E.C.U.). The Chicago Mercantile Exchange and the New York Cotton Exchange are planning similar contracts. E.C.U.S have become popular on the physical Eurobond market. This has created a demand for hedging E.C.U.s. Meanwhile, the Hong Kong Futures Exchange hopes to attract business from China as that country’s commodity exports increase. The Hong Kong exchange offers contracts in soya beans, sugar, and gold, and is awaiting Government approval to offer financial futures, including a contract on the Hang Seng stick index. Details of New Zealand trading yesterday: COMMERCIAL BILLS 85 Open H/L Last Vol Jul. - - 7690 7 Aug. 7755 7760/7725 7740 27 Sep. 7770 7770/7730 7745 79 Dec. 8000 8002/7975 7981 16 Contracts traded: 129. ?US CONTRACT 85 Open H/L Last Vol Jul. 2.0800 .1080/0800 .0915 59 Aug. 2.1200 .1220/1190 .1190 13 Sep. 2.1425 .1500/1425 .1500 6 Contracts traded: 78.