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  • 8.5-FUTURES MARKETS-THE LONDON ROBUSTA CONTRACT

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  • The London robusta contract

     
     

    Following the removal in 1982 of exchange controls in the United Kingdom, LIFFE was set up to offer market participants better means to manage exposure to both foreign exchange and interest rate volatility. In 1992 it merged with the London Traded Options Market, and in 1996 it merged with the London Commodity Exchange (LCE). This is when soft and agricultural commodity contracts were added to the financial portfolio.

    Contracts currently traded are cocoa, robusta coffee, white sugar, wheat, barley and potatoes. There is also a weather contract. Following the purchase of LIFFE by Euronext in 2001 the exchange was renamed Euronext.liffe although in the trade it is still referred to as LIFFE. Commodity futures have been traded in London for many years - robusta coffee futures first started trading in 1958. Quotations then were in Pound Sterling but from 1992 onwards both futures and options have been trading in United States currency.

    Market symbol RC - website  www.euronext.com