Cap Gemini Ernst & Young is to be given the opportunity to take a ten per cent stake in Liffe IT, a new e-commerce subsidiary established by London's International Financial Futures and Options Exchange.
Details of the link with Cap Gemini, and with US-based investors Battery Ventures and the Blackstone Group which are proposing to place between £40 million and £60 million in the London exchange, have been posted to shareholders in advance of an EGM on 20 November.
In June, Liffe entered into a memorandum of understanding (MOU) with Cap Gemini Ernst & Young, outlining proposals to work together on strategic and business development, systems development and service delivery of the Liffe Connect automating trading platform and associated technology.
Liffe Chairman, Brian Williamson says: "Battery Ventures, Blackstone and Cap Gemini Ernst & Young share our vision of the future for financial markets and other markets based on the Internet and e-commerce which have begun to create a demand for a new breed of derivatives exchanges."
Chinh Chu, senior managing director of the Blackstone Group comments: "Liffe and the Liffe Connect platform are well positioned to capitalise on the trend towards increased reliance on technological innovation in global financial markets. Together, we anticipate expanding Liffe's presence as a futures exchange, a provider of technology solutions and a participant in emerging business to business markets".
The Board of Liffe believes that Liffe Connect has sound commercial prospects across a range of products and markets. Liffe says it intends to establish a new subsidiary (Liffe IT) and to transfer the Liffe Connect technology and assets to the new company. Cap Gemini is to be offered the opportunity to take a 10% stake in Liffe IT on terms to be agreed.