The London Metal Exchange (LME)
HISTORY | The London Metal Exchange (LME), founded in 1877, traces its origins in market operations back to 1571. LME offers contracts with expiry dates of three months from the trade date, and also allows for cash trading. It offers worldwide reference pricing for base metals and physical delivery to settle contracts.
MARKET POSITION | The exchange provides platforms including inter-office trading, 24-hours a day operations and traditional open-outcry in the Ring trading session. LME launched an electronic platform called LME Select in February 2001, and it is becoming more and more transparent and liquid in recent years. The products traded are dominantly base metals including copper, aluminum, lead, zinc, nickel and tin.
OFFICIAL WEBSITE | http://www.lme.com
The International Petroleum Exchange (IPE)
HISTORY | The International Petroleum Exchange (IPE) was established in 1980 by a number of leading energy futures companies, and was initially formed as a non-profit corporation. It was also the only exchange that provided the service of crude oil trading. Nevertheless, there was a need for hedging services due to the volatility of the crude oil market. Therefore, the establishment of IPE was critical for the energy futures market.
MARKET POSITION | IPE is the most important exchange for trading energy futures and options contracts in Europe, and it is one of the major international crude oil trading centres. Its energy price quotation provides very important features for investors to estimate the energy market.
IPE's average daily volume of crude oil trading is around 65 million barrels. However, due to a sharp increase in crude oil price in recent years, many crude oil dealers focus on trading in futures market instead of spot market.
The crude oil price is highly volatile, and the balance of supply and demand is very unstable. Therefore, in order to provide a more accurate price quotation, IPE updated the price quotation system in 2004. As a result, investors can now obtain the price quotation of 8 different energy products worldwide.
In 2000, IPE completed the restructuring of the company and soon became profitable. IPE was then taken over by Intercontinental Exchange, Inc. and became a subsidiary company of a United States' company. The main financial products trading in IPE are Brent crude oil futures, diesel oil futures and natural gas futures.
OFFICIAL WEBSITE | https://www.theice.com
The London International Financial Futures and Options Exchange (LIFFE)
HISTORY | The London International Financial Futures and Options Exchange (LIFFE) was established in 1982, and it is the main financial futures exchange in London. In 1992, LIFFE merged with the London Traded Options Market (LTOM), adding equity options to its product range. Soon after, the name was changed to The London International Financial Futures and Options Exchange (LIFFE). In 1996, LIFFE merged with the London Commodity Exchange (LCE). Consequently, a variety of soft and agricultural commodity contracts were made available for trade in the exchange.
MARKET POSITION | LIFFE is not only the oldest financial futures exchange but the largest volume trading exchange. The establishment of LIFFE is essential to London being the global financial centre it is today.
In 2002, LIFFE was taken over by Euronext, and its name was changed to Euronext.Liffe. According to the daily volume, Euronext.Liffe is the second largest derivatives trading exchange. LIFFE CONNECT systems provide a wide spectrum of derivatives products for 29 countries, trading on a real-time electronic trading platform. The main financial products trading in LIFFE are currencies, bond, interest rate, shares, commodity futures and options.
OFFICIAL WEBSITE | http://www.euronext.com