London International Financial Futures and Options Exchange (LIFFE) Definition

What Is the London Worldwide Monetary Futures and Choices Trade (LIFFE)?

The London Worldwide Monetary Futures and Choices Trade (LIFFE) is the previous title of the biggest futures and choices trade in London, England. It has been renamed the ICE Futures Europe after a sequence of mergers and acquisitions (M&A) left it beneath the possession of the Intercontinental Trade (ICE).

Understanding the London Worldwide Monetary Futures and Choices Trade (LIFFE)

LIFFE was established in 1982 by Sir Brian Williamson whose motivation in creating the trade was to capitalize on alternatives from eased foreign money rules launched by the UK. The trade started with futures contracts and choices linked to short-term rates of interest. Nonetheless, a sequence of M&A transactions over time has resulted in a rising product record.

• In 1993, LIFFE merged with the London Traded Choices Market, leading to fairness choices being added to the trade.
• In 1996, LIFFE merged with the London Commodity Trade and added agricultural commodity contracts to its product record.
• In 2002, LIFFE was acquired by Euronext.
• In 2007, Euronext and the NYSE merged to create NYSE Euronext, with LIFFE changing into a part of the NYSE Euronext companies.
• In 2013, the Intercontinental Trade (ICE) bought NYSE Euronext. LIFFE turned a part of the ICE companies nonetheless working beneath the umbrella of NYSE Euronext.
• In 2014, Euronext exited the ICE relationship and started buying and selling independently by an preliminary public providing (IPO). LIFFE remained with ICE NYSE and was named ICE Futures Europe.

ICE Futures Europe

The ICE Futures Europe trade is one in every of many futures and choices exchanges globally. Its peer subsidiaries beneath the ICE model embrace ICE Futures U.S., ICE Futures Canada, and ICE Futures Singapore. Within the U.S., comparable exchanges embrace the Cboe Choices Trade, Chicago Board of Commerce (CBOT), Chicago Mercantile Trade (CME), New York Mercantile Trade (NYMEX), and the New York Board of Commerce (NYBOT). 

The ICE Futures Europe trade primarily makes use of digital trade networking for its transactions. Nonetheless, it does have an open outcry buying and selling pit with some human transaction execution as effectively. The trade has an intensive record of members who pay a membership price. Merchandise transacting on the ICE Futures Europe trade embrace agriculture futures, power futures, rate of interest futures, and choices, and all forms of fairness derivatives.

The ICE Futures Europe trade is registered as a acknowledged funding trade in England. Its key regulators embrace the U.Okay. Monetary Conduct Authority (FCA) and the Commodity Futures Buying and selling Fee (CFTC) for U.S. linked merchandise.

The ICE Futures Europe trade enterprise has a prestigious board of administrators. It is usually identified for the administration of the Brent Crude Index, which is a world benchmark administered by ICE Futures Europe. The ICE Brent Index is calculated to symbolize the common worth of buying and selling for Brent futures, the biggest buying and selling block of oil futures.