Euronext.liffe today announced that it will launch Raw Sugar futures and options contracts in February 2007. The Raw Sugar futures contract will be physically delivered and trade alongside the existing White Sugar contracts. The decision to launch the new contracts follows an in-depth consultation with sugar market participants worldwide.

The new contracts will be listed on LIFFE CONNECT®, one of the world’s most advanced electronic trading systems and the electronic platform of choice for global soft commodity users. For the first time, market users will be able to transact business seamlessly between the Raw and White Sugar markets, providing cost and execution efficiencies. In addition, the new Raw Sugar contracts will be cleared alongside the existing White Sugar contracts, by LCH.Clearnet Ltd, providing even greater efficiencies, including margin offsets between Raw Sugar and White Sugar contracts.

Details of the significant cost, execution and back office processing efficiencies will be provided over the coming weeks.

Ian Dudden, Director of Commodity Products at Euronext.liffe commented: “For the past five years Euronext.liffe’s Commodity portfolio has experienced record volume growth, due in part to the availability of our contracts via global distribution on LIFFE CONNECT®. In response to growing customer demand for the Exchange to expand its commodity product portfolio, we have decided to list a Raw Sugar contract to compliment our existing White Sugar contract and allow market users to benefit from the efficiencies that a single trading platform and single clearing house provide.”

It is intended that the new contracts will be made available in the United States under LIFFE’s existing Foreign Trading System No-Action Letter, and the Exchange has informed the CFTC of this intention. The Exchange will file formal notifications with the Commission in the near future.