LIFFE CONNECT

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LIFFE CONNECT is NYSE Liffe's electronic trading platform that supports electronic transactions of all Liffe products and other exchanges that have licensed its technology. Today it serves as the electronic matching engine for all of NYSE Euronext's derivatives trading for markets in London, Paris, Brussels, Amsterdam and Lisbon, incorporated under the Euronext banner.

History

LIFFE CONNECT was developed by the London International Financial Futures and Options Exchange (Liffe) to replace its open outcry trading floor in 1998. Since then it was selected by Liffe for its five pan-European derivatives markets and also is used by the Kansas City Board of Trade (KCBT), Minneapolis Grain Exchange (MGEX), Winnipeg Commodity Exchange (WCE) and Tokyo International Financial Futures Exchange (TIFFE). The Chicago Board of Trade (CBOT) also used LIFFE CONNECT, but in 2008 as part of its July 2007 merger with CME, moves to the CME Globex electronic trading platform. [1]

Access to LIFFE CONNECT

Liffe requires shareholders who seeking trading membership to use conformant software and demonstrate a basic level of technical and operational readiness before entering the LIFFE CONNECT™ market. They must:

  • install conformant trading application software
  • pass a market entry test to demonstrate they have a suitable technical environment and adequate operational procedures

LIFFE CONNECT not only allows market participants to submit orders in individual contract months – “outrights” – but also as complete strategies and to have those strategies quoted on screen. This functionality makes the trading of strategies, such as Packs and Bundles, easier for market participants as they can trade these strategies as one transaction without legging risk (the risk that one leg of the strategy might not be filled).

References

  1. "LIFFE CONNECT”. www.liffe.com.