LIFFE is the largest electronic exchange in the
world in terms of value, and has the potential to cope with substantially higher
trading volumes. Depending on market demand it could also be expanded to
incorporate acceptance of electronic warehouse warrants for tendering purposes.
Clearing of physical coffee against futures (against actuals) is already
Through electronic documentation systems as Bolero
(See 06, E-commerce and supply chain management) it is theoretically also
possible to link coffee purchases in origin countries and the subsequent export
shipments with the relevant hedging positions on the exchange. Such additions
are of interest especially to the banking system that finances such operations
but would require considerable further development. See 10, Risk.