The London International Financial Futures and Options Exchange (LIFFE, pronounced ‘life’) is a futures exchange based in London. LIFFE is now part of NYSE Euronext following its takeover by Euronext in January 2002 and Euronext’s merger with New York Stock Exchange in April 2007.A futures and options exchange in London, England that was modeled after the Chicago Board of Trade and the Chicago Mercantile Exchange. Similar to its American counterparts, this exchange used to deal with futures, options and commodities contracts. However, in 2002, LIFFE was acquired by Euronext as part of its strategy to increase its presence as a derivatives market. LIFFE has been renamed Euronext.liffe.
LIFFE accredited traders, particularly those engaged in the open outcry trading pits, could and did earn high salaries at the price of a demanding and stressful job. Floor support personnel (Runners, Midoffice and exchange staff), in contrast, usually earned a lot less. LIFFE floor staff were easily identified by their distinctive and brightly coloured blazers (yellow jackets for Runners) and badges with three-letter IDs called ‘Mnemonics’.
During most of its existence as an independent exchange, LIFFE used the open outcry system to facilitate trades. LIFFE’s reluctance to change to an electronic trading system was a cause of its downfall. By the time LIFFE had implemented LIFE CONNECT, a widespread electronic trading platform, fully electronic exchanges had been in operation for almost 10 years and had already snatched up a sizable market share. LIFFE pit traders and locals (Traders trading on their own account, betting their own funds) in particular enjoyed a reputation of a lavish lifestyle – pubs and wine houses along Cannon Street were filled with LIFFE personnel at all times of the day and night. Visitors to the LIFFE floor were often surprised by the harsh emotional conditions and chaotic-looking floor, with paper snipplets covering the floor and abuse frequently being yelled, albeit jokingly, at them.