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NYSE Liffe

NYSE : History | Membership | Types Traded | Further Reading

NYSE Liffe is a commodity exchange that has had a varied history, coming into being after a number of mergers and takeovers resulted in the creation of the present globe-spanning exchange. Today it is one of the world’s foremost exchanges for soft commodities (also known as ‘softs’) and agricultural commodities, trading large volumes of each of these from its main trading centres in London and Paris. [wdca_ad id=”1134″ ]

History of NYSE Liffe

NYSE Liffe is a modern commodity exchange that has been created from three main strands: Liffe, Euronext and NYSE (the New York Stock Exchange). Liffe was originally the London Financial Futures and Options Exchange, a commodity exchange that was set up in 1982 after a round of financial deregulation. It offered futures and options based on short term interest rates, and in the 1990s it added agricultural commodities and equity options by merging with the London Commodity Exchange and the London Traded Options Market respectively. Liffe’s independent existence came to an end in 2002 when it was taken over by Euronext, though it does retain a large degree of autonomy in terms of management and decision making. Euronext, formed in 2000, itself is the product of the merger of a number of previously existing bourses, namely the Paris Bourse, the Brussels Stock Exchange and the Amsterdam Stock Exchange. The NYSE (New York Stock Exchange), on the other hand, has historically been a stock exchange that has dealt with cash equities, rather than a commodities exchange. To this day it remains the largest exchange in the world of this type. Founded in 1792, the NYSE has continued to grow, establishing a position of dominance in the equities market: the merger with Euronext to create NYSE Euronext, the parent company of NYSE Liffe, can only cement its position as one of the world’s most important financial institutions.

Membership of NYSE Liffe

There is one main grade of membership of NYSE Liffe. Standard membership allows commodity trading on the exchange and full access to exchange facilities, including use of the LIFFE Connect trading system and also the BClear contract clearing system if applicable. A minimum of one ‘responsible person’ from their organisation will need to be nominated by the member: this is to access trading systems on each NYSE Liffe market the member wishes to trade on. Affiliate membership is also available. It gives access to NYSE Liffe’s trading system, but only if the prospective affiliate member has a very close relationship with an existing member (owns 95% of the member, is 95% owned by the member, or is 95% owned by an organisation/individual that also owns 95% of a member. All trading by the affiliate is done in the name of the member, and the member is responsible to the exchange for the trades of the affiliate.

Commodities Traded on NYSE Liffe

The commodity trading arm of NYSE Liffe operates from two main centres, London and Paris. The softs and agricultural commodities traded on NYSE Liffe may be listed according to trading centre: the contract code (ticker symbol) for each commodity is in brackets afterwards. The commodities traded on this exchange are:

  • London Traded Agricultural Commodities: Cocoa (C), Feed Wheat (T), Robusta Coffee (RC), White Sugar (W).
  • Paris Traded Agricultural Commodities: Corn (EMA), Malting Barley (EOB), Milling Wheat (EBM), Rapeseed (ECO).

Further Reading

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