The Exchange traded a total of 131,054,809 futures and options contracts in 2000, almost 10 per cent higher than in 1999.
Hugh Freedberg, LIFFE's Chief Executive said, "This has been a year of excellent progress for LIFFE. We completed our transformation from an open-outcry exchange to a fully electronic marketplace with the transfer of commodities from open outcry to LIFFE CONNECT™ on 27 November.
We have dramatically increased our distribution of LIFFE CONNECT™ around the world. Our system can now be accessed by traders in over 23 countries worldwide, including Singapore, Japan, Australia and South Africa - more than any other electronic system. We have 350 sites with a further 10 dealing rooms being added every month."
During 2000 LIFFE's share of the benchmark euro interest rate futures contract, the Three Month Euribor, grew to 99%. The contract traded a record 58 million contracts during the year, a 63% increase on 1999 and its open interest reached a new high of 1,589,078 contracts (?1.6 billion nominal value) on 18 December 2000.
LIFFE's equity products hit a new annual record high, trading 23 million contracts, up 25% on 1999's total. Within this total, individual equity options experienced a 52% year-on-year growth.
"LIFFE is now the world's leading electronic exchange, offering a broader range of products accessible from more countries than any other electronic system," said Brian Williamson, LIFFE's Chairman. "LIFFE now lists futures and options on short-term interest rates, government bonds, equities, indices and commodity products on LIFFE CONNECT™."
Total exchange volume for December was 10 million contracts, up 89% on December 1999, with daily volume averaging 527,898 contracts.
Towards the end of 2000, LIFFE's shareholders overwhelmingly endorsed LIFFE's strategy to develop a new technology business alongside its exchange business. Over £57 million of new capital has been raised by offering new shares to existing shareholders and through a significant new investment by US investment firms, Battery Ventures and the Blackstone Group.
"Shareholder approval is hugely significant in that it is a vote of confidence in what we are doing. With our investment partners, we will continue to develop our core exchange business and, in addition, with our technology partner, Cap Gemini Ernst & Young, we now have the right resources and capabilities to proceed with our plans for LIFFE CONNECT™," said Hugh Freedberg, LIFFE's Chief Executive.
