Short-Term Interest Rate Futures To Trade Exclusively On LIFFE CONNECT™ As From Monday 22 November

The London International Financial Futures and Options Exchange (LIFFE) announces that its Board has decided that, from Monday 22 November, all of LIFFE's short-term interest rate futures contracts will trade exclusively on the Exchange's electronic trading system. The Board's decision was taken in response to customer demand following a period of parallel trading on floor and screen. As a consequence, floor-based trading of LIFFE's benchmark Euroswiss, Short Sterling and Euribor futures will be discontinued after Friday 19 November. Hugh Freedberg, LIFFE's Chief Executive said "We had planned for a transition period of several months, recognising that it would take short-term interest rate contracts time to migrate to the screen. However, the transfer has occurred faster than expected. Our customers have rapidly become familiar and comfortable with trading on LIFFE CONNECT™ and regard the system as delivering the functionality, speed and robustness they require. More than half of LIFFE's money market futures business is now trading electronically and the momentum is growing. Our major customers have told us they need to be able to plan ahead for the coming year with a single LIFFE trading platform for short-term interest rate futures contracts. They also wish to avoid a split in liquidity at a time when trading activity generally is likely to reduce as they approach the Year 2000." Brian Williamson, LIFFE's Chairman said, "Open outcry has served LIFFE well for over 17 years; it has been central to the development of LIFFE's business. However, in order to thrive in a highly competitive and fast-changing marketplace the Exchange has taken, and will continue to take, decisive action. LIFFE CONNECT™ is the world's most advanced electronic trading system. It is the only platform to trade successfully short-term interest rate contracts, involving highly complex strategies, which extend out to five years. Today's announcement is a further step in LIFFE's commitment to deliver to international users an efficient and cost-effective market. It will further consolidate London's supremacy as the world's centre for trading European money market derivatives."