Liffe sees its future in electronic trading

Liffe, London's futures and options exchange, yesterday voted 97.5 per cent in favour of a new system of electronic trading in a bid to hit back at its arch-rival in Germany, writes Andrew Verity.

Daniel Hodson, the chief executive of Liffe, described the vote as "an outstanding result".

The new trading system will run alongside the system of open-outcry trading on the floor of the exchange.

Members also approved plans to allow outside investors to buy shares in Liffe, which until now has been wholly owned by the members which operate in the market.

The market will also shift to a profit-oriented strategy.

Executives at the exchange proposed the restructuring last month after it became obvious that Liffe was losing a large chunk of its market share to Deutsche Terminborse, the Frankfurt-based exchange which already uses electronic trading.