Eurodollar
BankingDefinition
US dollar deposits held outside the US — historically in European banks, now globally. The eurodollar market is enormous (~$10T+) and largely unregulated. Hosts most cross-border dollar liquidity flows.
SOFR replaced 3-month eurodollar (LIBOR) as the benchmark for floating-rate dollar borrowing in 2023. CME Eurodollar futures, once the most-traded interest rate contract globally, were retired in April 2023.
SOFR replaced 3-month eurodollar (LIBOR) as the benchmark for floating-rate dollar borrowing in 2023. CME Eurodollar futures, once the most-traded interest rate contract globally, were retired in April 2023.