London International Financial Futures and Options Exchange
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The London International Financial Futures and Options Exchange (LIFFE, pronounced 'life') was a futures exchange based in London. In 2014, following a series of takeovers, LIFFE became part of Intercontinental Exchange, and was renamed ICE Futures Europe.[1]
History
The London International Financial Futures Exchange (LIFFE), established by Sir Brian Williamson[2] started life on 30 September 1982, to take advantage of the removal of currency controls in the UK in 1979. The exchange modelled itself after the Chicago Board of Trade and the Chicago Mercantile Exchange. It initially offered futures contracts and options linked to short-term interest rates. In 1993 LIFFE merged with the London Traded Options Market (LTOM), adding equity options to its product range. This is when it changed its name to the London International Financial Futures and Options Exchange. In 1996 it merged with the London Commodity Exchange (LCE), and, as a result, a range of soft and agricultural commodity contracts was added to its products offering. Trading was conducted by open outcry, where traders meet on the trading floor (in what is called the pit) to conduct trades. The Exchange was originally housed in the historic Royal Exchange building near Bank but then moved to Cannon Bridge in 1991.[3][4]
By the end of 1996, LIFFE was by far the biggest futures exchange in Europe, followed by the
Move to electronic trading
LIFFE had had big plans to expand, and intended to redevelop
On Friday 24 November 2000, at 5 pm, the last three of the once 26 open outcry pits were permanently closed. The design of LIFFE CONNECT made it possible for customers to choose which trading software they would use. LIFFE intended that this flexibility would encourage traders around the world to link to the exchange. And, by the beginning of 2002, customers in 25 countries around the world were trading on LIFFE. This completed a revolution in LIFFE's business: whereas traders had once had to come to LIFFE; now, through LIFFE CONNECT, LIFFE took its market to its customers wherever they were in the world.
Seeing LIFFE CONNECT's potential, the
In January 2002, LIFFE was acquired by Euronext, joining the exchanges of Amsterdam, Brussels, Paris and Lisbon.[6]
References
- Durica, Dr. Michael (2006). Product Development for Electronic Derivative Exchanges: The case of the German ifo business climate index as underlying for exchange traded derivatives to hedge business cycle risk. Pro Business. Berlin.
- ^ Scott, Gordon. "LIFFE". investopedia. Retrieved 12 August 2020.
- ^ "Sheikha Mozah Bint Nasser Al-Missned". Archived from the original on 19 April 2012.
- ^ "Royal Exchange - Hidden London". hidden-london.com.
- ^ "London's Royal Exchange | History.co.uk". Archived from the original on 19 August 2014. Retrieved 23 August 2014.
- ^ "Liffe Spitalfields deal cheers City lawyers". thelawyer.com. 14 January 1997.
- ^ Ascarelli, Silvia (30 October 2001). "Euronext wins contest to acquire Liffe". Wall Street Journal. Retrieved 12 August 2020.