February 1999 - London International Financial Futures and Options Exchange
Griffin Trading Company and GLH (Derivatives) Ltd

LIFFE took action under its Default Rules to declare Griffin Trading Company (GTC) - a clearing member of the market - and GLH (Derivatives) Ltd - a non-clearing member - to be defaulters. The London Clearing House (LCH) also declared GTC to be a defaulter under its Default Rules.

The transactions that caused the defaults took place on another exchange and were initiated by client of GTC who was not registered at LIFFE in any capacity.

GTC's clients included around 50 professional traders ('locals') registered at LIFFE who have been adversely affected by the default because of GTC's inability to repay in full the monies deposited by them with GTC.

Since the declaration of default, LIFFE and LCH have taken appropriate steps under their respective Default Rules to achieve an orderly transfer of client positions to other cleraing members or the closing-out of such positions. LCH reports today (see the separate Press Release from LCH) that this process has been completed and that LCH is now able to make all of the segregated client monies held by it availble to the liquidator of GTC. LCH itself has not incurred any loss.

LIFFE and Securities and Futures Authority (SFA) have put in place a fast track procedure to facilitate the re-registration of LIFFE locals, who were clients of GTC, with other LIFFE members. LIFFE will continue to liaise with SFA and to offer any and all assistance necessary to expedite the release of the vailable segregated client funds to the LIFFE locals and the other segregated clients of GTC.