London Stock Exchange (LSE) was last week poised to launch a market specifically to trade CFDs, according to various market sources. They claim LSE has already conducted an extensive feasibility study on the concept, and will establish the new market in early 2006.
The exchange has declined to comment on the initiative, but a spokesperson said, "Because a fair proportion of our business is related to CFD activity - we estimate that around 35% of the trade on the order book stems from CFDs - we've been talking to customers and discussing how we can add value to the process."
CFDs have proved a spectacular success story since they were launched in the early 1990s. They were originally...