After that acquisition, Euronext consolidated all of its derivatives trading operations under the "Euronext. 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 ICE Clear Europe.
Trading on Liffe, as on other futures exchanges, was originally conducted by open outcry with each product traded in a designated trading pit. By it among among the top three futures and options exchanges in volume globally. Liffe created Bclear in as the on-exchange administration and clearing service for equity and commodity derivatives. 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 , Bclear has cleared over a billion contracts and . NYSE Euronext became the first exchange to clear credit default swaps, in December , on the Bclear platform when they launched credit default swap index contracts. 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.
One set of trading rules covers all interest rate products. For certain product groups opening hours have been extended to cover additional time zones.
Bond Derivatives Of the three bond derivatives products offered by Liffe, Long Gilt futures and Long Gilt options are the most active products.
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 year euro-denominated products are most active of the Swapnote grouping.
Swapnote products include both dollar- and euro-denominated two-year, five-year, and ten-year futures and options. The exchange said it expects the following contracts will be available for trading on May 27, , subject to regulatory approval: Of the long list of offerings in index derivatives traded on Liffe, the three most active include: Liffe commodity futures and options cover softs and other agricultural products, with most trading volume concentrated in cocoa, coffee and sugar.
Commodity products include futures and options on: Liffe offers trading in a limited number of currency futures and options products, based on U. Liffe lists stock options also known as individual equity options on more than leading European companies.
More than single stock futures are traded through Liffe. As of , equities from 21 countries are available to trade on the firm's platforms. Tracker Options Trackers replicate the performance of an index offer physical delivery of the shares on which they are based the underlying and have American-style exercise.
LIFFEdata is the umbrella brand under which Liffe distributes all market data and price information associated with its products. This encompasses real-time, delayed and historical data. Published May 10, Products Futures and options Website www. Retrieved from " http: Navigation menu Personal tools Log in. Views Read View source View history. This page was last modified on 5 February , at This page has been accessed 84, times.More...