December 10, 2008

Liffe to launch commodities on Bclear

Liffe has now announced that it will launch a range of soft and agricultural commodity products on its award-winning Bclear (OTC derivatives) service, delivered and powered by Cinnober, in the first quarter of 2009. 

Commodity products will join the individual equity and index products offered by Bclear, which was launched in 2005. An exact launch date will be announced in due course. 

Garry Jones, Executive Director of Business Development and Strategy at Liffe, said: “This is a significant expansion of Bclear. It responds to the growing demands from our commodity customers for the development of services for on-exchange trade administration and, through post-trade clearing, reduces operational risk and manages the counterparty credit risk involved in doing business in the soft and agricultural commodities OTC market.” 

Bclear will initially offer cash-settled swap futures and options priced against the benchmark Robusta Coffee, Cocoa and White Sugar Contracts already traded on Liffe. Liffe plans to expand the range of commodity products available on Bclear to encompass further soft and agricultural commodity swaps and options with flexible maturities and other products as required in a rapidly changing market.

“Three years ago we delivered Bclear and it has been a great journey together with Liffe since then,” commented Jan Arpi, CEO of Cinnober Financial Technology. “Bclear is one example of how our TRADExpress technology can be used for innovative market-building. Recent developments also show the flexibility it provides to meet new challenges and opportunities.”

The risk management benefits of Bclear will soon also be available to users of Credit Default Swaps (CDS) when Liffe launches CDS on Bclear on 22 December 2008.