LIFFE’S Place in the London Financial Markets

Abstract

In the past year the London International Financial Futures Exchange has played an essential role in the new financial market structures that have developed after ‘Big Bang’. In the particular case of gilts, it is difficult to imagine how the marketmakers would have been able to operate effectively without the hedging facilities offered by the long gilt contract. Before looking at individual contracts and their roles, however, it will be useful to consider the overall development of the exchange over the last couple of years.