Liffe offers locals pounds 25,000 cash payouts to quit pits
Thursday 09 September 1999
The offer is meant to go some way towards defraying the costs for freelancers, or locals, of setting themselves up as self-employed screen-based traders.
However, some locals say the move runs counter to the express view of Liffe officials that the two systems should be allowed to coexist as long as there is demand and that ultimately the market should decide.
Most locals have already either set themselves up as screen-based traders or quit altogether. But a diehard group of around 30 locals is holding out, claiming the pit still offers advantages, particularly in the very short-dated interest rate futures where London excels.
They say their claims were borne out by the reaction to yesterday's UK interest rate increase which showed that the screen-based Liffe Connect system was unable to cope.
Rather than risk the relatively untried Connect system, the big trading houses who were desperate to cover their positions switched the majority of their deals through to the pit, where some 206,000 contracts were traded against 60,000 through Liffe Connect. Liffe only introduced trading on Connect for the short-term interest rate "Stir" contracts on Monday.
The dissident locals also claim that Liffe is adding after-hours figures to their official volume statistics for Liffe Connect in an attempt to persuade the big houses to move their business away from the floor.
Liffe is under pressure to shift business on to Connect because the cost of maintaining the pits has become prohibitive."Liffe is going broke with floor trading," one trader said. A similar approach was adopted in Paris where the Matif exchange offered compensation packages to traders who went on to screens.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
iJobs Money & Business
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £25000 per annum + OTE £35000: SThree: SThree are a global FTSE 250 b...