London Exchange Suspends Talks on Joining Globex
CHICAGO (AP) _ The London International Financial Futures and Options Exchange said Tuesday it has severed discussions aimed at joining Globex, the automated after-hours futures trading system.
The exchange, known as LIFFE, said there is no point in continuing talks because Globex had refused to consider listing some of its most successful international contracts, including the German bund, a bond contract.
″In view of this it has been mutually agreed with Globex that these discussions should now be suspended,″ the exchange said in a statement.
It said discussions could be reopened if the terms of participating were not so onerous.
Globex Chairman Jack Sandner said German bund futures and options were at one time on a list of LIFFE contracts acceptable to Globex, but were withdrawn at the objection of the Chicago Board of Trade, one of the founders of Globex.
The Board of Trade has proposed launching its own bund contract. The Commodity Futures Trading Commission has approved this proposal, but the Board of Trade has set no date for listing the bund.