IntercontinentalExchange Group (ICE) plans to have separated the Liffe London derivatives market from Euronext in Q1 2014 and said it will be fully integrated into the group by the end of next year.
Detailing its plans for Liffe, ICE revealed it will begin to transition Liffe contracts to the ICE trading platform and ICE Futures Europe exchange following its successful demerger from Euronext.
Agricultural commodity will be the first to transition, expected to take place in summer 2014, while equity derivatives and interest rates contracts will be transferred in the third and fourth quarters respectively.
As part of the move, the ICE platform will need to have its functionality expanded to include a pro-rata allocation-based matching algorithm needed for the short-term interest rate market. Liffe members will benefit from the ICE platform’s pre- and post-trade risk management functions and other features.
Mid-2014 will see Eurodollar and DTCC GCF Repo futures contracts listed on Liffe US moved to Liffe in the UK. Clearing will transition from New York Portfolio Clearing to Ice Clear Europe.
Liffe’s UK data center in Basildon will be retained and the matching engine will continue to operate on the site, meaning customer can use their existing colocation facilities and network connection to trade Liffe markets.
ICE formally acquired NYSE Euronext in November after announcing plans to acquire the company in December 2012.