LIFFE, AFTER RECORD VOLUMES, SEES MORE GROWTH
The records in turnover set by the London
International Financial Futures Exchange (LIFFE) in March could
be surpassed in the coming months, Liffe Chief Executive
Michael Jenkins said.
    Last month, Liffe saw record monthly futures volume at 1.15
mln lots, and record monthly options volume at 97,700. Total
Liffe volume in first quarter 1987 rose to 2.8 mln contracts,
or 89 pct up on the same 1986 period.
    Long gilt turnover in first quarter 1987 was 300 pct up on
the year-ago period at 1.63 mln lots versus 409,500. But T-bond
volume fell by 38 pct to 244,500 in first three months 1987.
    Jenkins told Reuters the higher volumes for gilts reflected
in part the volatility in the U.K. Markets in recent months,
while the falloff in T-bonds was an indication of the relative
stability of U.S. Credit markets.
    Jenkins said he saw room for the whole financial futures
sector to grow further in the coming months. In particular, FT-
SE 100 futures had great scope for expansion, and turnover in
them should be much higher by end 1987.
    FT-SE futures volume was 62,700 in first quarter 1987, an
increase of 124 pct over the 28,000 contracts recorded in the
same months of 1986.
    Institutions here had been slow to find out about the use
of stock exchange futures, but they would now learn more,
Jenkins predicted.
    Commenting on the difference in popularity between gilts
and bonds, Jenkins said Liffe had designed the widest possible
variety of contracts so that at any given time, at least one
sector would be volatile enough to attract trading. The current
situation of U.S. Markets being steady, and U.K. Ones
changeable, might alter completely in coming months.
    A further boost to Liffe's volume and attractiveness should
come with the introduction of yen bond futures, he added.
 REUTER
