London International Financial Futures and Options Exchange (LIFFE)

What Is the London International Financial Futures and Options Exchange (LIFFE)?

The London International Financial Futures and Options Exchange (LIFFE) is the former name of ICE Futures. The largest futures and options exchange in London, LIFFE was renamed ICE Futures Europe after a series of mergers and acquisitions left it under the ownership of the Intercontinental Exchange (ICE).

The exchange is still headquartered in London.

Understanding the London International Financial Futures and Options Exchange (LIFFE)

LIFFE was established in 1982 by Sir Brian Williamson whose motivation in creating the exchange was to capitalize on opportunities from eased currency regulations introduced by the United Kingdom.

The exchange began with futures contracts and options linked to short-term interest rates. The product list grew over a series of M&A transactions.

• In 1993, LIFFE merged with the London Traded Options Market, and equity options were added to the exchange.
• In 1996, LIFFE merged with the London Commodity Exchange, adding agricultural commodity contracts to its product list.
• In 2002, LIFFE was acquired by Euronext.
• In 2007, Euronext and the NYSE merged to create NYSE Euronext, with LIFFE becoming part of the NYSE Euronext businesses.
• In 2013, the Intercontinental Exchange (ICE) purchased NYSE Euronext. LIFFE became a component of the ICE businesses under the umbrella of NYSE Euronext.
• In 2014, Euronext exited the ICE relationship and began trading independently through an initial public offering (IPO). LIFFE remained with ICE NYSE and was named ICE Futures Europe.

ICE Futures Europe

The ICE Futures Europe exchange is one of many futures and options exchanges. Its peer subsidiaries under the ICE brand include ICE Futures U.S., ICE Futures Canada, and ICE Futures Singapore.

In the U.S., comparable exchanges include the Cboe Options Exchange, the Chicago Board of Trade (CBOT), the Chicago Mercantile Exchange (CME), the New York Mercantile Exchange (NYMEX), and the New York Board of Trade (NYBOT). 

The ICE Futures Europe exchange primarily uses electronic exchange networking for its transactions. However, it does have an open outcry trading pit with some human transaction execution as well.

The exchange has an extensive list of members who pay a membership fee to trade. Products transacting on the ICE Futures Europe exchange include agriculture futures, energy futures, interest rate futures, options, and all types of equity derivatives.

The ICE Futures Europe exchange is registered as a recognized investment exchange in England. Its key regulators include the Financial Conduct Authority (FCA) in the United Kingdom and the Commodity Futures Trading Commission (CFTC) for products linked to the U.S.

The ICE Futures Europe exchange business has a prestigious board of directors. It is widely known for its management of the Brent Crude Index, a global benchmark administered by ICE Futures Europe. The ICE Brent Index is calculated to represent the average price of trading for Brent futures, the largest trading block of oil futures.

The Bottom Line

The London International Financial Futures and Options Exchange (LIFFE) has undergone a number of changes in ownership over the years. Now called ICE Futures Europe, it remains London's largest futures and options exchange.