U.K. AGRICULTURAL FUTURES MARKETS TO MERGE
Three London markets which trade potato,
soymeal and meat futures said they will merge to form a new
Agricultural Futures Exchange.
    Legal advisers have been instructed to implement the
amalgamation of the London Potato Futures Association, LPFA,
the London Meat Futures Exchange, LMFE, and the Grain and Feed
Trade Association's, GAFTA, Soya Bean Meal Futures Association,
SOMFA. No timetable was given.
    Members of the three exchanges have been consulted,
Agricultural Futures Exchange secretary Bill Englebright told
Reuters, and no objections have been raised to the merger.
    Three markets are involved at present but the new exchange
could ultimately combine five markets.
    Discussions are taking place with the Baltic International
Freight Futures Exchange, BIFFEX, and the GAFTA London Grain
Futures Market is considering the possibility of joining the
other markets, market officials said.
    The BIFFEX board is expected to reach a decision on the
merger at its meeting at the end of this month, after members
are consulted at a meeting on March 16.
    The grain futures market also intends to consult its
members soon, GAFTA director general James Mackie said.
    The aim of the amalgamation is to limit regulatory and
administrative costs and achieve the recognition required under
the 1986 Financial Services Act. This legislation requires a
futures market to become a Recognised Investment Exchange, RIE,
for trading to continue.
    Representatives of all the futures markets on the Baltic
Exchange have been discussing the possibility of a single RIE
structure since the beginning of the year.
    The new exchange now planned will apply to the Securities
and Investments Board for recognition as an RIE "at the
appropriate time," the Agricultural Futures Exchange said.
    "This commitment by the markets will enable progress to be
made to develop a stronger and more effective exchange to the
benefit of all those involved in the industry," the chairman of
the formation committee, Pat Elmer, said.
    The merged markets will remain at the Baltic Exchange.
 Reuter
