LIFFE to List Global Eurodollar Contract from 18 March.

Business Editors

LONDON--(BUSINESS WIRE)--Jan. 26, 2004

The London International Financial Futures and Options Exchange (LIFFE):

(Note to Editors - On January 26, 2004 at 11:00 a.m. Eastern, Hugh Freedberg, LIFFE CEO will hold a press briefing for U.S. media. The call is for media only. To join the call, please dial 800-500-0311, code LIFFE call. Please dial in 5-10 minutes before the start time.)

The London International Financial Futures and Options Exchange (LIFFE), wholly owned by Euronext N.V, today announced it will offer three-month Eurodollar futures and options contracts beginning 18 March, 2004. This is a natural extension of LIFFE's short-term interest (STIR) contract franchise which already comprises LIFFE's successful euro-denominated short-term interest rate contract, EURIBOR and its Sterling, Swiss Franc and Yen STIRS, which trade over a million contracts a day. LIFFE CONNECT(R), the most advanced and widely distributed electronic derivatives trading system in the world, will be the electronic platform for trading the Eurodollar futures and options.

LIFFE -- a UK-regulated exchange operating under the jurisdiction of the UK's Financial Services Authority (FSA) -- is launching this initiative to meet the demand of its customers worldwide to trade EURIBOR and Eurodollar contracts side by side on the same electronic platform. This will enable the global community of interest-rate customers to gain the benefits of using LIFFE CONNECT(R)'s technology and distribution and of having all the short-term interest rate contracts cleared together by LCH.Clearnet, Europe's leading central counterparty, whose recent merger has resulted in ownership by a wider user group. Hugh Freedberg, LIFFE's CEO, said: "Today's announcement means we can now offer our customers a single, global market for the world's five major STIR contracts. Customers have been looking forward to the time when they can trade, clear, settle and cross margin all the major STIR contracts on the same electronic market. We will now meet that need."

Last year, trading volume in LIFFE's EURIBOR contracts grew by 43% while trading volume in Eurodollar contracts only grew by 0.5%, emphasizing the degree to which the LIFFE CONNECT(R) electronic platform, with its extensive distribution in Europe, the United States and the Far East promotes trading growth.

The LIFFE Eurodollar market will be:

-- A single, global marketplace -- in excess of ten thousand

traders from over 650 sites around the world access the system

every day;

-- Immediate and direct -- with all users having access to the

same information at the same time;

-- Efficient -- allowing a trader not only to trade complex

short-term interest rate strategies, but also to be active in

many more delivery months and strategies than traditional

floor-based trading allows;

-- Cost-effective -- avoiding many of the peripheral costs

associated with traditional floor trading, while offering

competitive exchange fees for trading Eurodollar contracts;

-- Capital efficient -- with the opportunity to reduce margin

costs through cross-margining between Eurodollar, EURIBOR and

other STIR positions;

-- Proven -- with the LIFFE CONNECT(R) trading system that is

already host to EURIBOR, the largest electronically-traded

STIR contract in the world;

-- Well-regulated -- with strong investor protection rules and

regulations, overseen by the FSA, and supported by

LCH.Clearnet, Europe's leading central counterparty; and

-- Widely beneficial -- not just to traders, but to end-users

such as corporate treasurers and the wider economy.

As a further potential development, LIFFE recognizes that U.S. customers may wish to trade Eurodollar contracts on a wholly electronic U.S. exchange, using LIFFE CONNECT(R), gaining benefits that include clearing in the U.S. In the coming months, LIFFE, working in partnership with its U.S. exchange, NQLX, will explore whether there is sufficient customer demand for these contracts to be made available through NQLX, subject to the approval of the Commodity Futures Trading Commission (CFTC).

Notes to Editors

1. LIFFE's contracts are cleared in London through LCH.Clearnet Ltd.

2. LIFFE is the London-based international derivatives market,
    regulated by the UK's Financial Services Authority and part of
    Euronext.liffe. Euronext.liffe is the umbrella brand name for the
    seven derivatives markets, owned by Euronext NV, each regulated by
    their domestic regulator. The seven markets comprise: Euronext
    Amsterdam Financial Derivative Markets and Euronext Amsterdam
    Commodity Derivatives Markets which are regulated under Dutch Law;
    Euronext Brussels Derivatives Market, regulated under Belgian Law;
    Euronext Lisbon Futures and Options Market (Mercado de Futoros e
    Opcoes), regulated under Portuguese law, LIFFE Adminstration and
    Management, which is a Recognised Investment Exchange under
    English law; and Euronext Paris Futures and Options Markets (Matif
    and Monep) which are regulated markets under French law.

3. LIFFE's Eurodollar futures and options contracts will be available
    for trading throughout the US and European trading day: 07:00
    hours to 20:00 hours London Time and 01:00 hours to 14:00 hours
    Chicago Time.

4. In 2003 volumes in EURIBOR grew by almost 43%, from 140m to 200m
    contracts. In that same period volumes in Eurodollar grew 0.5%,
    from 307m to 308m contracts.

5. LIFFE was granted a "no action letter" by the CFTC in 1999. The "no
    action" regime allows a non-US market to provide electronic
    trading facilities to US-based firms.

Attch: The contract specification for LIFFE's Eurodollar futures and
options contracts


                    Summary Contract Specifications
                     Three Month Eurodollar Future

Unit of Trading       Interest rate on three-month deposit of
                       $1,000,000
--------------------- ------------------------------------------------

Delivery Months       20 Quarterly Months - on March, June September,
                       December cycle
                      4 Serial Months - the nearest 6 consecutive
                       calendar months will be available for trading
--------------------- ------------------------------------------------
Quotation             100.000 minus rate of interest
--------------------- ------------------------------------------------
Minimum Price         0.005 for all delivery months
 Movement
--------------------- ------------------------------------------------
Value of Minimum      $12.50 for all delivery months
 Price Movement
--------------------- ------------------------------------------------
Last Trading Day      11:00 hours London Time
                      05:00 hours Chicago Time*
                      2 London business days prior to the 3rd
                       Wednesday of the delivery month
--------------------- ------------------------------------------------
Delivery Day          First business day following the Last Trading
                       Day
--------------------- ------------------------------------------------
Trading Hours         07:00 hours to 20:00 hours London Time
                      01:00 hours to 14:00 hours Chicago Time
--------------------- ------------------------------------------------
Daily Settlement      Positions settled to the nearest 0.005
                      20:00 hours London time
                      14:00 hours Chicago time
--------------------- ------------------------------------------------
EDSP                  100.000 minus the British Bankers' Association
                       Eurodollar offered rate for three month dollar
                       deposits at 11:00 hours London Time on the Last
                       Trading Day

                      EDSP will be rounded to the nearest 0.001, or in
                       the case of equality to the nearest lower 0.001
--------------------- ------------------------------------------------
Contract Standard     Cash settlement based on the EDSP
--------------------- ------------------------------------------------


                Option on Three Month Eurodollar Future

Unit of Trading           One Three-Month Eurodollar Futures Contract
------------------------  --------------------------------------------
Expiry Months             8 Quarterly Months - on March, June
                           September, December cycle
                          2 Serial Months - the nearest 4 consecutive
                           calendar months will be available for
                           trading
                          (serial options relate to following
                           quarterly future)
------------------------  --------------------------------------------
Quotation                 Percentage points
------------------------  --------------------------------------------
Minimum Price Movement    0.005 for all expiry months
------------------------  --------------------------------------------
Value of Minimum Price    $12.50 for all expiry months
 Movement
------------------------  --------------------------------------------
Last Trading Day          11:00 hours London Time
                          05:00 hours Chicago Time *
                          Two London business days prior to the third
                           Wednesday of the expiry month
------------------------  --------------------------------------------
Exercise Day              Exercise by 20:00 hours London Time on any
                           business day prior to the Last Trading Day
                          Exercise by 11:45 hours London Time on the
                           Last Trading Day
------------------------  --------------------------------------------
Delivery Day              First business day following the day of
                           exercise
------------------------  --------------------------------------------
Trading Hours             07:02 hours to 20:00 hours London Time
                          01:02 hours to 14:00 hours Chicago Time
------------------------  --------------------------------------------
Daily Settlement          Positions settled to the nearest 0.005
                          20:00 hours London time
------------------------  --------------------------------------------
Exercise Price Interval   0.125 for serial months and first 4
                           quarterly months
                          0.250 for remaining quarterly months
------------------------  --------------------------------------------
Contract Standard         Delivery of futures contract at the exercise
                           price
------------------------  --------------------------------------------
* Chicago times are for reference only