Death threats.

On May 6, 1998, Salomon Smith Barney and Chase, two of the most powerful members of London's Financial futures exchange (LIFFE), said that they may abandon LIFFE and trade short-term D-mark contracts on LIFFE's arch-rival, Germany's DTB. If they follow through in their threat, LIFFE could be ruined...

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Publicado en:Economist Vol. 347; no. 8067; pp. 74 - 76
Formato: Artículo
Publicado: Economist Newspaper Limited May 9 1998
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Death threats.
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        Deutsche Terminboerse GmbH
        London International Financial Futures & Options Exchange
        Investments -- Data processing
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          Deutsche Terminboerse GmbH
          London International Financial Futures & Options Exchange
          Investments -- Data processing
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        Deutsche Terminboerse GmbH -- Electronic trading
        London International Financial Futures Exchange -- Electronic trading
      ab: On May 6, 1998, Salomon Smith Barney and Chase, two of the most powerful members of London's Financial futures exchange (LIFFE), said that they may abandon LIFFE and trade short-term D-mark contracts on LIFFE's arch-rival, Germany's DTB. If they follow through in their threat, LIFFE could be ruined. Both Chase and Salomon apportion blame to the manner in which LIFFE trades, in physical “pits” where dealers meet each other face to face. In contrast, the DTB relies on computers, which are less expensive and more efficient. Earlier in 1998, LIFFE disclosed plans to speed up development of an electronic system to replace pit trading for some contracts. However, under present plans, that system will not be ready until the end of 1999, and Chase's threat to move its business may compel LIFFE to take action more rapidly.
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