Banking & finance
Jenkins, Michael (6 of 8) National Life Stories: City Lives
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Legal and ethical usage »
1991-10-01, 1991-11-02, 1991-21-03, 1991-15-05
Is part of (Collection)
interviewee's office, London
Jenkins, Michael, 1932-, (speaker, male)
Burk, Kathy, (speaker, female)
Part 6 (tape 3 side B): Description of how a headhunter works. Approached by a headhunter to join London International Financial Futures Exchange (LIFFE) in June 1981 as Chief Executive. Not sure whether to join: would it be successful? But liked the challenge. History of beginnings of LIFFE (more detail in John Barkshire interview). When he came in, they were about to launch the initial offer for the first tranche of seats of the new Exchange. Important decisions: borrowed offices from John Barkshire's company, Mercantile House. Had to get members, a building, decide on what types of contracts, i.e. what sorts of products to offer, and the rules of the Exchange. Pioneering things by LIFFE: invited allcomers to join - banks, brokers, jobbers, and international, i.e. did not have to be British or have an office in London. Allowed individuals to become members - Stock Exchange did not. Stock Exchange was extremely apprehensive about the whole thing - did not want to know. However, in 1987 the Stock Exchange wanted to incorporate LIFFE, since the two markets had a lot of common members, but the sticking point was the only terms on which the Stock Exchange would agree. LIFFE Board thought the Stock Exchange would be a dead hand. About a year ago, because the option market had been in decline, the practitioners threatened to move out of the Stock Exchange. The Bank of England approached and suggested they come together, and the Stock Exchange suggested the setting-up of a new independent market of the two: it has been announced but not yet come about - hope by next year. Why the problems? It was put forward as a merger, but really a takeover by LIFFE, so have to change ways things are currently done; and the two markets are culturally different. The Stock Exchange options market is conservative and not very successful, while LIFFE has a culture of being able to do things. Re: setting up of LIFFE: how they got their first members.
Interview with Sir Michael Jenkins OBE, Chief Executive of the London International Financial Futures Exchange (LIFFE) (1981-1992).