The OTC Facility will provide trade administration and clearing of OTC equity derivatives business and combines the flexibility and anonymity of trading in the OTC market with the efficiencies associated with trading exchange listed derivatives. Customers will benefit from trade confirmation without the publication of trade price and size as well as ease of trade administration. Access to a central counterparty will enable the efficient use of capital and the freeing up of credit lines.
Fraser Cowie, Executive Director of Marketing at Euronext.liffe, said: "The OTC Facility provides customers with the broadest range of UK equity options available. Initially available for over 85 standardised UK equity options and 40 customisable UK equity options, the next stage is to expand the OTC Facility to other European markets giving extensive European blue-chip coverage."
The first release in Euronext.liffe's Wholesale Services was the MATCH Facility (for trading Universal Stock Futures directly between wholesale counterparties) which was launched on 28 November 2003, followed by the launch of the FLEX® Facility (allowing customers the ability to tailor exercise prices and expiry dates on a range of UK equity derivatives.) on 26 January 2004. Trading in the FLEX® facility got off to a particularly strong start with over 175,000 lots being traded in the first three weeks.
Volume in Euronext.liffe's range of equity derivatives was over 88 million contracts during January and February 2004, up 28% on the same period in 2003.
