CME Group Inc. shed light on what could happen to the exchangegiant's most-traded contracts—eurodollars, which permit bets oninterest rates—if the scandal-plagued LIBOR benchmark they're tiedto goes away in two years.

Officials at CME on Tuesday proposed a methodology forconverting eurodollar futures and options to other derivatives atthe exchange, ones linked to an alternative benchmark called theSecured Overnight Financing Rate, or SOFR. Theplan could be tweaked based on customer feedback.

In 2021, the U.K. regulator that oversees LIBOR, the FinancialConduct Authority (FCA), will stop compelling banks to submit dataused to calculate LIBOR. CME CEO Terry Duffy said in an Octoberinterview that the benchmark isn't guaranteed to go away then.But LIBOR is so deeply embedded in the global financial system thateven a slim chance it disappears means contingency planning isnecessary.

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