LIFFE re-launches Bund Contract with reduced coupon

The London International Financial Futures and Options Exchange (LIFFE) today (June 10, 1999) announced that it will re-launch its German Government Bond (Bund) futures contract on 17 June 1999 with a 4% notional coupon (reduced from 6%). This will be effective for the September 1999 delivery month onwards. The current 6% notional coupon no longer reflects prevailing yields, and has resulted in technical shortages of key deliverable stocks and a reduction in hedging efficiency. The new 4% notional coupon addresses these weaknesses and reflects LIFFE's commitment to meeting the needs of its customers. A general fee holiday will apply to all Bund futures and options trading from 17 June 1999 until 31 December 1999. Hugh Freedberg, LIFFE's Chief Executive said, "These initiatives reflect LIFFE's responsiveness to its customers and provides a technically superior choice for the market."