Eurodollar futures, where nearly $3 trillion changes hands every day, are preparing for the end of LIBOR – the biggest shake-up they have had since they were introduced on the Chicago Mercantile Exchange (CME) in 1981. The transition away from LIBOR will affect firms that use Eurodollar futures. There are concerns about using SOFR futures since it was launched on CME just last year and remains largely untested. Additional concerns stem from repo-market volatility In September that briefly caused SOFR to jump to a record 5.25%, about 3 percentage points above its usual range. Some CME traders think that doubt over the transition has fueled a slowdown in the Eurodollar market and other traders disagree, saying the slowdown was more likely caused by the Fed’s decision to hold interest rates steady after three rate cuts this year.

Read more via the Wall Street Journal.