1982: When currency control was removed in the UK in 1979, LIFFE was created and started production.
LIFFE had many issues in its beginning because of the open outcry system, which is how they facilitated trades. Management did not want to change from its old ways to an electronic trading system. The lion’s share of the market had already been taken by electronic exchanges by the time LIFFE implemented LIFFE Connect.
1990: The DTB electronic exchange was created and took the place of the Eurex.
1993: LIFFE merged with The London Traded Options Market (LTOM) and added equity
options to its product list.
1996: LIFFE became the largest exchange in Europe that trades futures.
1997: The DTB started taking market share way from LIFFE 25% at a time. In one year, it lost over 90% of its market share to electronic trading. By the end of 1997, it only had 10% of the market.
The bund future makes up over one third of LIFFE’s business.
1998: Reports a loss of 64 million Lire.
1999: The Euro was created.
LIFFE Connect is established connecting traders globally giving LIFEE the market share it need to compete with other exchanges.
2000: Cap Gemini, Ernst & Young, Batter Ventures, and the Blackstone Group all work together to help LIFFE with new technology.
2001: LIFFE sells its technology to the Tokyo Futures Exchange.
The exchange becomes profitable once again.
2002: LIFFE becomes a member of the NYSE Euronex.
Countries all around the world start trading the LIFFE. Over 25 countries become every day customers.
2003: LIFFE sells its technology to the Chicago Board of Trade.
2004: Volume for the year in interest rate contracts was over 300 million, contract equities over 450 million, and commodities over 7.5 million contracts.
2007: The Euronext merge with the NYSE.
2008: LIFFE sells its technology to the Tokyo Stock Exchange.
Singapore announces it wants to be affiliated with LIFFE and its derivative business.
The growth of the industry has culminated expansion into many parts of the world. The technology LIFFE uses is being sold to government agencies across the world. Being in the forefront of technology has given them the ability to expand and generate profits. The more that a business can stay on the cutting edge of technology the better, and the London International Futures and Options Exchange is doing all they can to stay in the forefront of technology while providing a great place to trade.
Trading in futures and options involves a substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results.
