Nasdaq and LIFFE are setting out to utilise their powerful combination of strengths and skills to lead the development of single stock futures in the US market and to further develop the European market.
Later this year, regulatory changes will, for the first time, enable US investors to trade single stock futures. LIFFE and Nasdaq will form a US-regulated entity, which will list single stock futures on global companies through LIFFE CONNECT™, for trading by US customers. In a unique partnership between cash and derivatives markets, LIFFE and Nasdaq will provide single stock futures in the US and Europe on a wholly electronic platform. They also intend to develop links with US and European clearing organisations to maximise efficiencies for their customers.
Brian Williamson, LIFFE's Chairman said: "Anticipating the growth in global equity trading, LIFFE pioneered the development of futures on global stocks with the successful launch of its Universal Stock Futures earlier this year. Our partnership with Nasdaq, a giant in the equity world, enables us to build on the momentum we've already achieved. The strength of Nasdaq's brand and its pre-eminent position in the US equity market will make our single stock futures offering a compelling choice for both retail and institutional customers in the US, as well as in Europe and beyond. As a first step, LIFFE and Nasdaq together are taking the revolution which LIFFE started, to the biggest capital market in the world, the United States of America ."
Frank G. Zarb, Chairman of Nasdaq, noted: "This partnership moves Nasdaq into a market segment which is new but consistent with our global programme. We expect these instruments to become important investment vehicles in the United States and Europe. This transatlantic partnership opens new opportunities for both Nasdaq and LIFFE -- it gets us to market faster and positions us well to offer state-of-the-art electronic trading to investors in both the U.S. and Europe.
We chose LIFFE CONNECT ™ because it is the most advanced electronic derivatives trading system in the world, already proven to trade the most complex financial contracts, including Universal Stock Futures. It has an unrivalled distribution network, being available in more countries than any other electronic trading system."
Hugh Freedberg, LIFFE's Chief Executive said, "Our partnership with Nasdaq represents a significant milestone in realising LIFFE's ambitions to become a leading provider of electronic market solutions. Nasdaq can be justly proud of its reputation as an innovator and leader in electronic stock market trading. Its choice of LIFFE CONNECT ™ is a major endorsement of our trading platform and technology capabilities."
John Hilley, Chairman and Chief Executive Officer of Nasdaq International Inc. said: "The world is moving rapidly toward electronic trading across a wide array of financial instruments. At the same time, geographic barriers are coming down. This partnership is an important and tangible step in both directions -- bringing more products and choices to investors in the United States and Europe."
