LIFFE Announces Market Makers For Universal Stock Futures

The London International Financial Futures and Options Exchange (LIFFE) has announced eight designated market makers to enhance the liquidity of its new Universal Stock Futures product.

The market makers are:

Banca Commerciale Italiana SpA
CMT Capital Markets Trading UK Limited
DRW Investments (UK) Ltd
Geneva Ireland Financial Trading Limited
Mako Global Derivatives Limited
Schneider Trading Associates Ltd
Susquehanna Ireland Limited and
Tradelink Worldwide Ltd.

The presence of these market makers from launch on 29 January, will ensure that firm prices are available on LIFFE CONNECT™ from the start of trading to provide early liquidity in this revolutionary new product. Market makers agree to buy and sell contracts at an agreed spread (or better), making access to the market attractive and cost effective to potential customers.

From 29 January, customers will be able to buy and sell futures contracts on one exchange on 25 blue-chip stocks from the UK, continental Europe and the US, with a combined market capitalisation of £2.3 trillion (?3.8 trillion).

Hugh Freedberg, Chief Executive of LIFFE said: "Universal Stock Futures represent a revolution in global equity trading. They will be easy, cheap and efficient to trade -and are the most exciting initiative since we launched our electronic trading system, LIFFE CONNECT™. The support of the market makers will enable trading in Universal Stock Futures to get off to a flying start."

International equity markets are rapidly evolving and growing. In 1990, the capitalisation of the North American equities market was US $3 trillion and today it is approximately US $16 trillion. Freedberg added, "Universal Stock Futures have the potential to revolutionise equity markets in the same way that interest rate futures revolutionised first the money markets then the bond markets."