Is there still life in the Liffe? - Business - News - The Independent

Is there still life in the Liffe?

The heads of the London International Financial Futures and Options Exchange (Liffe) and the Chicago Board of Trade, under increasing pressure from German competition in trading derivatives, are meeting in Switzerland this weekend to rethink their joint venture plans.

The talks come after Germany's futures exchange, the Deutsche Terminboerse, said it will overtake Liffe as early as this month in market share on the German bund contract.

Liffe chief executive, Daniel Hodson and Chairman of the CBOT, Pat Arbor, confirmed they will scrap plans to trade each other's products using the open outcry system and will instead focus future ventures on electronic trading. The changes come as the Deutsche Terminboerse's electronic trading system continues to expand into London and Chicago. On Thursday the DTB said it will merge with Soffex, to create Europe's first cross-border derivatives operation.

"There is this relentless issue of the DTB terminals that will cause us to take a fresh look at our open outcry linkage," said Mr Arbor at the annual European derivatives conference in Buergenstock, Switzerland.

Dr Joerg Franke, head of the DTB, claimed his electronic exchange will capture the majority of trading in the 10-year German bund contract from Liffe by the end of the month. The DTB has a 43 per cent share of total trading on the contract, up from 34 per cent at the beginning of the year and from 25 per cent at the beginning of 1996.

Franke credits the exchange's decision to set up terminals in derivative centres on the world for its success and says that his lower-cost market will overtake the open outcry system. "It is a remarkable increase in market share and I am pretty sure we will reach 50 per cent in the next month," he said.

Mr Hodson admitted that Liffe is losing market share but said the open outcry system will still be the most liquid and efficient way for investors to trade futures contracts. He predicted that technology would help to improve the open outcry system as traders switch to electronic trading cards, voice-activated systems and headsets. Liffe plans to spend more than pounds 100m in the next four years to improve its state of the art technology.

Franke said the DTB and Soffex are already talking to other European exchanges about joining their new electronic exchange, to be called Eurex. Last month the DTB revived talks with France's Matif exchange about strategic alliances.

The talks between Liffe and the CBOT - not expected to lead to any immediate agreements - come amid poor performance in an existing arrangement the exchanges have for Liffe to trade US Treasury bonds and the CBOT to trade German bunds.

News
Paper trail: the wedding photograph found in the rubble after 9/11 – it took Elizabeth Keefe 13 years to find the people in it
newsWho are the people in this photo? It took Elizabeth Stringer Keefe 13 years to find out
Arts and Entertainment
Evil eye: Douglas Adams in 'mad genius' pose
booksNew biography sheds light on comic genius of Douglas Adams
Sport
FootballFull debuts don't come much more stylish than those on show here
News
i100
PROMOTED VIDEO
Life and Style
Kim Kardashian drawn backlash over her sexy swimsuit selfie, called 'disgusting' and 'nasty'
fashionCritics say magazine only pays attention to fashion trends among rich, white women
Arts and Entertainment
TVShows like Agents of S.H.I.E.L.D are little more than marketing tools
Arts and Entertainment
Hit the roof: hot-tub cinema east London
architectureFrom pools to football pitches, rooftop living is looking up
Travel
travel
News
The ecological reconstruction of Ikrandraco avatar is shown in this illustration courtesy of Chuang Zhao. Scientists on September 11, 2014 announced the discovery of fossils in China of a type of flying reptile called a pterosaur that lived 120 millions years ago and so closely resembled those creatures from the 2009 film, Avatar that they named it after them.
SCIENCE
Life and Style
tech
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
Matisse: The Cut-Outs exhibition attracted 562,000 visitors to the Tate Modern from April to September
art
Life and Style
Models walk the runway at the Tom Ford show during London Fashion Week Spring Summer 2015
fashionLondon Fashion Week 2014
News
Kenny G
news
News
peopleThe black actress has claimed police mistook her for a prostitute when she kissed her white husband
Life and Style
techIndian model comes with cricket scores baked in
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SQL Developer - Watford/NW London - £280 - £320 p/d - 6 months

£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Senior BA - Insurance **URGENT**

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Training Coordinator / Resource Planner - City, London

£35000 - £38000 per annum + Benefits: Ashdown Group: Training Coordinator / Pl...

Data Governance Manager (Solvency II) – Contract – Up to £450 daily rate, 6 month (may go Permanent)

£400 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...

Day In a Page

Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week