|WATCH: Paul MacGregor of NYSE Liffe Discusses New Products & the Interest Rate Market Outlook on MarketsWiki.tv (May 2012)|
|Key People||Garry Jones, CEO|
|Products||Futures and options|
(Also see: NYSE Liffe US)
NYSE Liffe is the global derivatives business of NYSE Euronext. It comprises the derivatives (futures and options on futures) business of Euronext, N.V. originally traded on individual venues in Amsterdam, Brussels, London, Lisbon and Paris markets. Each exchange is under the umbrella of NYSE Euronext.
After that acquisition, Euronext consolidated all of its derivatives trading operations under the "Euronext.liffe" name, and then its parent, Euronext, N.V., was acquired by the New York Stock Exchange.
All futures and options on futures trading - which includes such product areas as short-term interest rate and swap products, bonds, equity options, stock indexes, commodity and FX instruments - are transacted on a single electronic trading platform, LIFFE CONNECT, with central margining and clearing provided by LCH.Clearnet.
Liffe (originally "LIFFE," the acronym for the London International Financial Futures Exchange), was formed in London in 1982.
Following mergers with the London Traded Options Market (LTOM) and the London Commodity Exchange (LCE), Liffe added equity options and a range of soft and agricultural commodity products to its existing financial mix.
Trading on Liffe, as on other futures exchanges, was originally conducted by open outcry with each product traded in a designated trading pit. In 1998 Liffe embarked on a course that transfered all of its futures and options from the traditional method of trading to an electronic platform known as LIFFE CONNECT. By 1998 it among among the top three futures and options exchanges in volume globally.
In April 2011, Nasdaq OMX and ICE teamed up to make a counterbid for NYSE Euronext, which was at a 19% premium to the Deutsche Boerse bid that was announced earlier in the year. The Nasdaq/ICE mash up would allocate the Liffe platform to ICE while the rest of NYSE Euronext would go to Nasdaq. 
In September of 2012, it became known that Traiana, the post-trade services group owned by UK interdealer ICAP, would provide an application with a "kill switch" to limit damage from errant trading by algorithms to [[CME Group]] and NYSE Liffe.
|Year||Total Annual Volume*||Percent Change|
(*)Volumes include NYSE Liffe U.S. and NYSE Liffe Europe. 
Products and Services
Liffe created Bclear in 2005 as the on-exchange administration and clearing service for equity and commodity derivatives. Users can register OTC business as an exchange contract for futures and options on European and US blue-chip and mid-cap stocks and indices as well as Variance Futures on the FTSE 100, CAC 40 and AEX indices. This was created to reduce the counter-party credit, legal and operational risks associated with OTC deals. Bclear enables registration of both "standard exchange" and "flexible" trades in futures and options, allowing customers to execute their business in one single place at a much lower cost.
As of April 2012, Bclear has cleared over a billion contracts and 
NYSE Euronext became the first exchange to clear credit default swaps, in December 2008, on the Bclear platform when they launched credit default swap index contracts.  A month after its launch, however, the new clearing service for credit derivatives, launched by London-based LCH.Clearnet and futures market Liffe, had yet to execute a single trade, despite expectation that banks would use the system following regulatory pressure to pare risk in the market.
Interest Rate Derivatives
Liffe’s interest rate products comprise short-term interest rates (STIR), bond futures and options contracts covering the key European, Japanese, UK, Swiss and American benchmarks, and Swapnotes. One set of trading rules covers all interest rate products. For certain product groups opening hours have been extended to cover additional time zones.
Short-term Interest Rates (STIRs) Average daily volume (ADV) for Liffe’s short-term interest rate products (STIRs) as of September 2007 exceeded 2.5 million contracts.
- Liffe's flagship contract suite - the EURIBOR three-month interest rate contracts, including EURIBOR futures, EURIBOR options, and EURIBOR Mid-Curve Options - had a total volume of 242 million contracts in 2011. 
- Short Sterling products, including Short Sterling futures, Short Sterling options, and Short Sterling Mid-Curve Options were second most active of Liffe's short-term interest rate offerings.
Short-Term Interest Rate Products
- EONIA Futures
- EURIBOR Futures
- EURIBOR Options
- EURIBOR Mid-Curve Options
- Eurodollar Futures
- Eurodollar Options
- Eurodollar Mid-Curve Options
- Short Sterling Futures
- Short Sterling Options
- Short Sterling Mid-Curve Options
- Euroswiss Futures
- Euroswiss Options
- Euroyen Futures
Bond Derivatives Of the three bond derivatives products offered by Liffe, Long Gilt futures and Long Gilt options are the most active products. A Japanese Government Bond (JGB) futures contract also is listed for trading on Liffe.
Swapnote Futures and Options A Swapnote is a bond futures contract referenced to the swap market. Exchange-traded, centrally cleared and cash settled, it can be viewed as a bond futures contract that is priced in line with the euro swap curve. Swapnotes are used as a mechanism for hedging longer-dated non-government yields. The 2-year, 5-year and 10-year euro-denominated products are most active of the Swapnote grouping. ICAP plc Swapnote is a registered trademark of ICAP plc and has been licensed for use by Liffe. 
Swapnote products include both dollar- and euro-denominated two-year, five-year, and ten-year futures and options.
Of the long list of offerings in index derivatives traded on Liffe, the three most active include: 1) CAC 40 Index futures and options; 2) FTSE 100 Index futures and options (including FLEX options); and 3) AEX Index futures and options (including weekly options).
Index Derivatives products
- AEX Index Futures
- AEX Index Options
- AEX Index Weekly Options
- BEL 20 Index Futures
- BEL 20 Index Options
- CAC 40 Index Futures
- CAC 40 Index Options (PXA)
- CAC 40 Index Options (PXL)
- FTSE 100 Index Futures
- FTSE 100 Index Options (European- Style)
- FTSE 100 Index FLEX Options (European- Style)
- FTSE 250 Index Futures
- FTSE EPRA/NAREIT Europe Index Future
- FTSE EPRA/NAREIT Euro Zone Index Future
- FTSE Eurotop 100 Index Futures
- FTSEurofirst 80 Index Futures (Paris)
- FTSEurofirst 100 Index Futures (Paris)
- MSCI Euro Index Futures
- MSCI Pan-Euro Index Futures
- PSI 20 Futures
- MSCI Equity Indices
Commodity Futures and Options
Commodity products include futures and options on:
- Robusta Coffee
- Rapeseed Oil
- Raw Sugar
- White Sugar
- Feed Wheat
- Milling Wheat
- Malting Barley
- Skimmed Milk Powder
Currency Futures and Options
Liffe offers trading in a limited number of currency futures and options products, based on U.S. dollar and euro relationships.
Liffe lists stock options (also known as individual equity options) on more than 250 leading European companies.
Single Stock Futures
More than 1000 single stock futures are traded through Liffe. Originally, LIFFE listed about 250, but with the consolidation of Amsterdam, Paris, Brussels, Lisbon and London derivatives markets, that number nearly tripled. As of 2012, equities from 21 countries are available to trade on the firm's platforms.
- CAC 40 Master Unit
- DJ Euro STOXX 50SM Master Unit
Paul MacGregor JLN Interest Rates Interview
Paul MacGregor of NYSE Liffe Discusses New Products & the Interest Rate Market Outlook
NYSE Euronext continues to develop its interest rate offerings, challenging competitors in the space, such as CME Group. Paul MacGregor, executive director, head of fixed income, NYSE Liffe (the global derivatives business of NYSE Euronext) sat down recently with JLN’s Managing Editor, Christine Nielsen, to discuss the outlook for the interest rate market and new products on the horizon for the exchange. Published May 10, 2012. Watch at MarketsWiki.tv
- NYSE Liffe U.S. -- What to expect in 2012 [Video]
- Liffe Web site
- NYSE Euronext Web site
- Euronext Swapnotes
- Also see Broker list for Swapnotes 
- ↑ UPDATE: Nasdaq, ICE Offer To Buy NYSE Euronext For $11.3 Billion. Nasdaq.
- ↑ European Clearing Plans Announced. NYSE Euronext.
- ↑ Traiana pushs ‘kill switch’ into futures market. FT.com.
- ↑ "CME-CBOE Reach $1B Deal". Crains Chicago Business News.
- ↑ Trading Volume Statistics. Futures Industry.com.
- ↑ Bclear. Euronext.
- ↑ Bclear - Equities. Liffe:NYSE Euronex.
- ↑ Liffe and LCH.Clearnet Lead the way with the Launch of Credit Default Swaps on Bclear. NYSE.
- ↑ Financial News:Liffe CDS Clearing Has No Trades In 1st Month. Euronext.
- ↑ Annual Volume Survey. Futures Industry Association.
- ↑ "Swapnote futures and options”. www.euronext.com.
- ↑ Futures "Liffe commodity products". NYSE Euronext.
- ↑ "Liffe Currency Products”. www.euronext.com/.
- ↑ "Stock Options”. www.euronext.com.
- ↑ "Data Services”. www.liffe.com/.
- ↑ Paul MacGregor of NYSE Liffe Discusses New Products & the Interest Rate Market Outlook. MarketsWiki.tv.