Euronext.liffe started the gradual transfer from floor trading to screen trading for Amsterdam equity options in November 2001. The last phase of this, the migration of trading in options on the AEX index to screen trading, came into effect as of today, 9 December 2002.
Euronext.liffe has opted for a step-by-step approach for its migration project for Amsterdam products in order to keep the screens full, i.e. to ensure that there are tradable prices on-screen for all option series mainly to allow private investors to verify prices before concluding a transaction. Traditionally, private investors have accounted for a significant share of all trading volume in Amsterdam.
Due in part to growing interest in the Amsterdam exchange on the part of international investors, the changeover to screen trading has resulted in a substantial increase in turnover, more liquid contracts and lower spreads for investors. To make the market even more attractive to professional investors, Euronext also introduced a series of fee reductions in the course of the migration project.
In order to give traders acces to one standardised platform, Euronext.liffe is planning to transfer all derivative products on the LIFFE CONNECT TM trading platform. Belgian products are due to be transferred at 24 March 2003, to be followed by French products at 14 April 2003 and Dutch products to be tranfsered at a date to be announced.
Euronext N.V.(www.euronext.com) was formed by the merger of the Amsterdam, Brussels and Paris cash and derivatives exchanges in September 2000. The Euronext Group has since grown further, adding BVLP (the Portuguese cash and derivatives exchange) and LIFFE (The London International Financial Futures and Options Exchange). The derivatives businesses of Euronext and LIFFE are being combined under Euronext.liffe umbrella. As of 30 November 2002, 1,492 companies were listed on Euronext regulated markets representing a market capitalization of EUR 1,598 billion. In 2002 volumes of shares traded on the central order book have amounted to EUR 1,478 billion which with 653 million futures and options contracts makes Euronext the largest exchange in Europe.
