By John Oates, 30 July 1998 17:55
NEWS The French derivatives exchange, Matif, is to make big changes to the way its electronic trading system works. The exchange went electronic in April, but has been hit by criticism that it has made the market much more volatile than under traditional open outcry trading. The exchange is believed to be considering a trading freeze when an individual contract starts a large price movement. A spokeswoman at the UK's derivatives exchange, Liffe, said: "There has always been a belief that open outcry deals with periods of volatility better than electronic systems." Electronic trading is cheaper than its traditional alternative and margins will be reduced with the introduction of the euro in January, she claimed.
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