this entry is about LIFFE until the takeover by Euronext Euronext N.V. is a European stock exchange with subsidiaries in Belgium, France, Netherlands, Portugal and the United Kingdom. ...

The London International Financial Futures and Options Exchange (LIFFE, pronounced 'life' as in 'human life', and never 'liff-eee') was the name of a futures exchange based in London, prior to its takeover by Euronext in January 2002. It is currently known as Euronext.liffe. A futures exchange, or futures and options exchange is a corporation or mutual organization which provides the facilities to trade futures contracts and options. ... London is the capital city of the United Kingdom and of England. ... Euronext N.V. is a European stock exchange with subsidiaries in Belgium, France, Netherlands, Portugal and the United Kingdom. ... Euronext. ...

History

The London International Financial Futures Exchange (LIFFE) started life in 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 1992 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 Chicago Board of Trade (CBOT) NYSE: BOT, established in 1848, is the worlds oldest futures and options exchange. ... asdguibsltfQEFJO;he traders to indicate their function on the floor (traders, runners, CME employees, etc. ... In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a certain underlying instrument at a certain date in the future, at a set price specified on the last trading date. ... In finance, an option is a contract whereby one party (the holder or buyer) has the right but not the obligation to exercise a feature of the contract (the option) on or before a future date (the exercise date or expiry). ... Open outcry occurs on a commodities exchange when traders shout their buy and sell orders. ...

By the end of 1996 LIFFE was by far the biggest futures exchange in Europe, followed by the MATIF in Paris and the Deutsche Terminbörse (DTB) in Frankfurt. The DTB was an electronic exchange founded in 1990 and the predesessor to Eurex. LIFFE's most traded product was a futures contract on Bunds, the 10 year German Government Bond. The DTB offered an identical product, but as an electronic exchange, it had a lower cost base. Mid 1997 the DTB had less than 10% of the market. By October it had more than half, and a couple of months later LIFFE was left with only 10%. Eurex is an European derivatives exchange market. ... In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a certain underlying instrument at a certain date in the future, at a set price specified on the last trading date. ...

Move to electronic trading

Around this time LIFFE had big plans to expand, and intended to redevelop Spitalfields Market in the City of London as they needed a larger building for their open outcry trading. With the loss of the market for their main product, Bund future contracts, all expansion plans were shelved, and LIFFE moved to an all electronic trading model in 1998. It already had an electronic platform called Automated Pit Trading (APT), which was used in after hours trading when the trading pit was closed. LIFFE now developed LIFE CONNECT for all trading. Old Spitalfields Market is a covered market located on the eastern edge of the City of London. ... For London as a whole, see the main article London. ...

In January 2002 LIFFE was acquired by Euronext, joining the exchanges of Amsterdam, Brussels, Paris and Lisbon. Together with the derivative arms of the continental European exchanges it became Euronext.liffe. Some analysts say that LIFFE had to give up its independence because it had failed to embrace technology early enough. For information on LIFFE after the take-over, see Euronext.liffe. Euronext N.V. is a European stock exchange with subsidiaries in Belgium, France, Netherlands, Portugal and the United Kingdom. ... Amsterdam Location Country The Netherlands Province North Holland Population 742,951(1 January 2005) Coordinates 52°22′N 4°54′E Website www. ... Emblem of the Brussels-Capital Region Flag of The City of Brussels Brussels (French: Bruxelles, Dutch: Brussel, German: Brüssel) is the capital of Belgium, the French community of Belgium, the Flemish community and of the European Union. ... The Eiffel Tower has become a symbol of Paris throughout the world. ... District Lisbon Mayor   - Party Carmona Rodrigues PSD Area 84. ... Euronext. ...

External links

• Euronext.liffe