Replies to post #44539 on SPOOZ Inc (SPZI)

[Birdito]

IT parts, like monitors and batteries, can be recycled too!

But let's talk about London...

The London International Financial Futures Exchange (LIFFE) started life in 1982, to take advantage of the removal of currency controls in the UK in 1979. The exchange modelled itself after the Chicago Board of Trade and the Chicago Mercantile Exchange. It initially offered futures contracts and options linked to short term interest rates. In 1992 LIFFE merged with the London Traded Options Market (LTOM), adding equity options to its product range. This is when it changed its name to the London International Financial Futures and Options Exchange. In 1996 it merged with the London Commodity Exchange (LCE), and, as a result, a range of soft and agricultural commodity contracts was added to its products offering. Trading was conducted by open outcry, where traders meet on the trading floor (in what is called the pit) to conduct trades.

By the end of 1996, LIFFE was by far the biggest futures exchange in Europe, followed by the MATIF in Paris and the Deutsche Terminbörse (DTB) in Frankfurt. The DTB was an electronic exchange founded in 1990 and the predecessor to Eurex. LIFFE's most-traded product was a futures contract on Bunds, the 10 year German Government Bond. The DTB offered an identical product, but as an electronic exchange, it had a lower cost base. The progress of DTB can be gauged from the fact that during Mid 1997 the DTB had less than 25% of the market. By October, it had more than 50%, and a couple of months later LIFFE was left with only 10%.

Around this time LIFFE had big plans to expand, and intended to redevelop Spitalfields Market in the City of London as they needed a larger building for their open outcry trading. With the loss of the market for their main product, Bund future contracts, all expansion plans were shelved, and LIFFE moved to an all electronic trading model in 1998. It already had an electronic platform called Automated Pit Trading (APT), which was used in after hours trading when the trading pit was closed. LIFFE now developed LIFFE CONNECT for all trading.

In January 2002 LIFFE was acquired by Euronext, joining the exchanges of Amsterdam, Brussels, Paris and Lisbon. Together with the derivative arms of the continental European exchanges it became Euronext.liffe. Some analysts say that LIFFE had to give up its independence because it had failed to embrace technology early enough. For information on LIFFE after the take-over, see Euronext.liffe.