-Reinforces Commitment to Competition, Innovation and Customer Service-
NYSE Liffe U.S. Completes Sale of Ownership Stake to Leading Market Participants
-Semi-Mutualized Exchange Structure Now with Six Partners in Total-
New York, March 10, 2010 – NYSE Euronext (NYX) today announced that it sold a significant minority ownership stake in its U.S. futures exchange, NYSE Liffe U.S., to six leading firms and liquidity providers: Citadel Securities, DRW Ventures LLC (an affiliate of DRW Trading Group), GETCO, Goldman Sachs, Morgan Stanley, and UBS. NYSE Euronext will continue to be the largest shareholder in NYSE Liffe U.S., managing the exchange’s daily operations. NYSE Liffe U.S. will continue to operate under the supervision of a separate Board of Directors, chaired by James J. McNulty, former CEO of the Chicago Mercantile Exchange.
"With the completion of this transaction, NYSE Liffe U.S. is well positioned to deliver innovation, competition and value to the U.S. derivatives marketplace," said Duncan L. Niederauer, Chief Executive Officer, NYSE Euronext. "We are committed to building a diverse, customer-driven U.S. futures exchange, and are confident that partnering with our clients is the right strategy for success."
"The NYSE Liffe U.S. partnership includes some of the most sophisticated and forward-thinking participants in today’s global markets," said Thomas F. Callahan, Chief Executive Officer, NYSE Liffe U.S. "The addition of a world-class partner like DRW to this group will only accelerate our efforts to deliver a vibrant, liquid U.S. futures exchange."
"Citadel Securities is committed to innovation as a means to promote open, fair and transparent markets. NYSE Euronext shares these principles and we welcome the opportunity to become a founding partner in this innovative new exchange," said Patrik Edsparr, Global CEO of Citadel Securities.
Don Wilson, Founder and CEO of DRW Trading Group added, "DRW’s partnership with NYSE Liffe U.S. is an exciting opportunity to influence the evolution of the futures industry in this time of unprecedented regulatory change."
"GETCO has a long-standing tradition of supporting competition and efficiency across the spectrum of global capital markets. We look forward to working with NYSE Euronext to build a world class U.S. futures exchange," said Dave Babulak, Managing Director of GETCO.
Reinhardt Olsen, North American Head of Exchange Traded Derivatives of UBS said, "In closing this agreement with NYSE Euronext, UBS clearly shows our dedication to expanding our leadership presence in the listed derivatives marketplace and our commitment to delivering more trading options and better value to our customers."
NYSE Liffe U.S. is a fully electronic, liquid market for 100 oz. gold futures, 5,000 oz. silver futures, options on gold and silver futures, and mini-sized 33.2 oz. gold and 1,000 oz. silver futures as well as equity index futures based on MSCI Emerging Markets, MSCI EAFE, and MSCI USA indices. NYSE Liffe U.S. has plans to further expand into futures on other asset classes, including U.S. interest rate products.
The Options Clearing Corporation (OCC) acts as clearing house for NYSE Liffe U.S. futures on precious metals, MSCI index futures, as well as all ETF options and index options trading on NYSE Arca, creating the opportunity for unique margin efficiencies for NYSE Euronext customers. NYSE Liffe U.S. intends to clear its U.S. interest rate futures at New York Portfolio Clearing, its innovative joint venture with DTCC designed to offer significant transparency and capital relief to major market participants by offering ‘single pot’ margining of cash bonds and interest rate derivatives, subject to regulatory approvals.
About NYSE Euronext
NYSE Euronext (NYX) is a leading global operator of financial markets and provider of innovative trading technologies. The company's exchanges in Europe and the United States trade equities, futures, options, fixed-income and exchange-traded products. With more than 3,700 listed operating companies, NYSE Euronext's equities markets – the New York Stock Exchange, NYSE Euronext, NYSE Amex, NYSE Alternext and NYSE Arca – represent one-third of the world's equities trading, the most liquidity of any global exchange group. NYSE Euronext also operates NYSE Liffe, one of the leading European derivatives businesses and the world's second-largest derivatives business by value of trading. The company offers comprehensive commercial technology, connectivity and market data products and services through NYSE Technologies. NYSE Euronext is in the S&P 500 index, and is the only exchange operator in the S&P 100 index and Fortune 500. For more information, please visit: http://www.nyx.com.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning NYSE Euronext’s plans, objectives, expectations and intentions and other statements that are not historical or current facts. Forward-looking statements are based on NYSE Euronext’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause NYSE Euronext’s results to differ materially from current expectations include, but are not limited to: NYSE Euronext’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk and U.S. and global competition, and other factors detailed in NYSE Euronext’s reference document for 2008 ("document de référence") filed with the French Autorité des Marchés Financiers (Registered on April 28, 2009 under No. R. 09-031), 2009 Annual Report on Form 10-K and other periodic reports filed with the U.S. Securities and Exchange Commission or the French Autorité des Marchés Financiers. In addition, these statements are based on a number of assumptions that are subject to change. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by NYSE Euronext that the projections will prove to be correct. This press release speaks only as of this date. NYSE Euronext disclaims any duty to update the information herein.