Talks are expected to begin between European cocoa players and the governors of the London futures markets (LIFFE) in regards to speculation in the commodity following a threat by traders through a letter sent to Liffe where the traders consider to switch to the New York cocoa futures market. Dealers reportedly felt that fund buying had pushed London cocoa futures LCCc2 to a 32-year high of €2,461 last week. The cocoa producers, in their communicationto Liffe, threatened to reconsider their hedging policy and move to the Intercontinental Exchange cocoa contract in New York where they said such market distortion is blocked unless Liffe introduced controls such as position limits. Infact German Cocoa Trade Association representing cocoa trader, brokers, processors and warehousing firms of Germany, said that they are also investigating the possibility of trading on the Deutsche Terminbörse - the German Derivatives Exchange - or setting up a new cocoa futures market in frustration at the lack of transparency in Liffe. The signatories of the letter are demanding that rules in Liffe should be changed  to show clearly what proportion of the open positions held on the London market are from speculators, in order to clearly determine what their influence is on prices.