Some of London’s most active independent market participants have criticised Liffe after the exchange implemented a half-tick in its short-sterling contract.
The half-tick was introduced on March 25 but frustration in the trading community has increased after Liffe refused to meet the disgruntled exchange members by cancelling a scheduled forum due to take place on April 3.
A number of traders had originally opposed the move when it was announced in January. At the time, Liffe said it had considered market demand before the launch by conducting a thorough and detailed consultation and expected the move to result in higher volumes. However, after the alteration took place several market participants contacted FO Week claiming that volumes have demonstrated what they originally believed - in short, that “the market never wanted this”.
Jamie MacLeod, owner of Edge Derivatives, previously Elite Derivatives, who claims to be responsible for approximately...