London’s title of the global financial capital is under threat, as one of capital’s largest financial markets is eyeing a move to the US.
The London International Futures and Options Exchange (Liffe) might shift its base to Atlanta because its new owner NYSE Euronext is set to be taken over by American financial group IntercontinentalExchange (ICE).
The London International Futures and Options Exchange (Liffe) trades trillions of pounds in financial products like interest rate and gilt futures.
Sources close the companies have said that moving the exchange from London to Atlanta could save ICE $30m (£20m) a year.
The move might result in London-based traders leaving the market. Also, senior traders have voiced concerns of the move adding 100 milliseconds to trading times. The extra time can mean a loss of millions of pounds in trading profits.
“Everyone I’ve spoken to said they would be mad to go ahead with this move,” a trader told the Daily Telegraph.
A spokesman for ICE said, “no plans to move technology infrastructure have been made”.
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