U.K. AGRICULTURAL FUTURES MARKETS TO MERGE Three London markets which trade potato, soymeal and meat futures said they will merge to form a new Agricultural Futures Exchange. Legal advisers have been instructed to implement the amalgamation of the London Potato Futures Association, LPFA, the London Meat Futures Exchange, LMFE, and the Grain and Feed Trade Association's, GAFTA, Soya Bean Meal Futures Association, SOMFA. No timetable was given. Members of the three exchanges have been consulted, Agricultural Futures Exchange secretary Bill Englebright told Reuters, and no objections have been raised to the merger. Three markets are involved at present but the new exchange could ultimately combine five markets. Discussions are taking place with the Baltic International Freight Futures Exchange, BIFFEX, and the GAFTA London Grain Futures Market is considering the possibility of joining the other markets, market officials said. The BIFFEX board is expected to reach a decision on the merger at its meeting at the end of this month, after members are consulted at a meeting on March 16. The grain futures market also intends to consult its members soon, GAFTA director general James Mackie said. The aim of the amalgamation is to limit regulatory and administrative costs and achieve the recognition required under the 1986 Financial Services Act. This legislation requires a futures market to become a Recognised Investment Exchange, RIE, for trading to continue. Representatives of all the futures markets on the Baltic Exchange have been discussing the possibility of a single RIE structure since the beginning of the year. The new exchange now planned will apply to the Securities and Investments Board for recognition as an RIE "at the appropriate time," the Agricultural Futures Exchange said. "This commitment by the markets will enable progress to be made to develop a stronger and more effective exchange to the benefit of all those involved in the industry," the chairman of the formation committee, Pat Elmer, said. The merged markets will remain at the Baltic Exchange.