London International Financial Futures and Options Exchange (LIFFE)

What Is the London International Financial Futures and Options Exchange (LIFFE)?

The London International Financial Futures and Options Exchange (LIFFE) is the former name of the biggest futures and options exchange in London, England. It has been renamed the ICE Futures Europe after a series of mergers and acquisitions (M&A) left it under the ownership of the Intercontinental Exchange (ICE).

Understanding the London International Financial Futures and Options Exchange (LIFFE)

LIFFE was laid out in 1982 by Sir Brian Williamson whose motivation in making the exchange was to capitalize on opportunities from facilitated currency regulations presented by the United Kingdom. The exchange started with futures contracts and options linked to short-term interest rates. Notwithstanding, a series of M&A transactions over the course of the years has brought about a developing product list.

• In 1993, LIFFE merged with the London Traded Options Market, bringing about equity options being added to the exchange.
• In 1996, LIFFE merged with the London Commodity Exchange and added agricultural commodity contracts to its product list.
• In 2002, LIFFE was acquired by Euronext.
• In 2007, Euronext and the NYSE merged to make NYSE Euronext, with LIFFE turning out to be part of the NYSE Euronext businesses.
• In 2013, the Intercontinental Exchange (ICE) purchased NYSE Euronext. LIFFE turned out to be part of the ICE businesses actually operating under the umbrella of NYSE Euronext.
• In 2014, Euronext left the ICE relationship and started trading freely through a initial public offering (IPO). LIFFE stayed with ICE NYSE and was named ICE Futures Europe.

ICE Futures Europe

The ICE Futures Europe exchange is one of numerous futures and options exchanges globally. Its peer auxiliaries under the ICE brand incorporate ICE Futures U.S., ICE Futures Canada, and ICE Futures Singapore. In the U.S., comparable exchanges incorporate the Cboe Options Exchange, Chicago Board of Trade (CBOT), Chicago Mercantile Exchange (CME), New York Mercantile Exchange (NYMEX), and the New York Board of Trade (NYBOT).

The ICE Futures Europe exchange fundamentally utilizes electronic exchange networking for its transactions. Notwithstanding, it has a open outcry trading pit with some human transaction execution too. The exchange has a broad rundown of individuals who pay an enrollment fee. Products executing on the ICE Futures Europe exchange incorporate agriculture futures, energy futures, interest rate futures, and options, and a wide range of equity derivatives.

The ICE Futures Europe exchange is registered as a recognized investment exchange in England. Its key regulators incorporate the U.K. Financial Conduct Authority (FCA) and the Commodity Futures Trading Commission (CFTC) for U.S. linked products.

The ICE Futures Europe exchange business has a lofty board of directors. It is likewise known for the management of the Brent Crude Index, which is a global benchmark administered by ICE Futures Europe. The ICE Brent Index is calculated to address the average price of trading for Brent futures, the biggest trading block of oil futures.

Features

• LIFFE is currently called ICE Futures Europe.
• LIFFE actually distributes the main index in oil trading: the Brent Crude index.
• The London International Financial Futures and Options Exchange (LIFFE) is the former name of the biggest futures and options exchange in London, England.
• LIFFE was laid out in 1982 and has gone through numerous ownership and mechanical changes from that point forward.