-Eurodollar and 2-year, 5-year, 10-year and 30-year US Treasury Futures to Launch Q3 2010-
NYSE Liffe U.S. to Offer Full Suite of Interest Rate Futures
-Delivering Innovative Capital and Operational Efficiencies to the Market-
New York, April 6, 2010 – NYSE Liffe U.S., the new US futures exchange of NYSE Euronext (NYX), today announced that it will launch a comprehensive family of interest rate futures in the third quarter of 2010 to coincide with the anticipated regulatory approval and launch of New York Portfolio Clearing (NYPC), its innovative new clearing joint venture with DTCC. NYSE Liffe U.S. will launch Eurodollar futures as well as 2-year, 5-year, 10-year and 30-year US Treasury futures. Options on these futures are expected to be launched in fourth-quarter 2010.
Interest rate futures listed on NYSE Liffe U.S. will benefit from the powerful operational and capital efficiencies achieved through the NYPC clearing solution. NYPC will deliver unique capital efficiencies achieved by calculating margin requirements based on the total risk within a common FICC and NYPC member’s portfolio of both cash bonds and derivatives. Additionally, all participants that transact US Treasury futures on NYSE Liffe U.S. will benefit from a highly efficient, single-net delivery process at expiry between FICC cash bond positions and NYPC futures positions, substantially reducing settlement risks at delivery.
“NYSE Liffe U.S. is working hard to provide our customers a compelling and unambiguous motivation to transact interest rate futures on our platform, based on capital efficiency, global distribution, operational innovation and strong alignment with today’s leading market participants,” said Thomas F. Callahan, CEO, NYSE Liffe U.S. “Our exchange will continue to respond to the needs of the global futures community to deliver a vibrant, liquid and fully transparent central marketplace for transacting interest rate futures.”
These products represent an important expansion of NYSE Liffe U.S. into the US interest rate futures market. When combined with the precious metals futures and futures on MSCI equity indices currently traded on NYSE Liffe U.S., these new products further demonstrate NYSE Euronext’s commitment to building a highly competitive, multi-asset class exchange. NYSE Liffe U.S. is also in advanced discussions with major market participants and regulators on a number of innovative new interest rate futures products, which are expected to be announced later in the year.
NYSE Liffe U.S. recently announced the closing of an equity partnership with six leading market participants, Citadel Securities, DRW Ventures LLC (an affiliate of DRW Trading Group), GETCO, Goldman Sachs, Morgan Stanley, and UBS. These industry-leading partners now own a significant minority stake in NYSE Liffe U.S.
NYSE Liffe U.S. utilizes the proven LIFFE CONNECT® trading platform designed and maintained by NYSE Technologies. This state-of the art platform matched in excess of 3 million contracts per day on the NYSE Liffe markets in Europe during 2009. NYSE Liffe U.S. offers a wide variety of global connectivity options allowing members to efficiently transact on the platform in a cost effective manner.
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.
The Depository Trust & Clearing Corporation (DTCC), through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, US government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with financial firms and third parties who market these products. DTCC's depository provides custody and asset servicing for more than 3.5 million securities issues from the United States and 117 other countries and territories, valued at $27.6 trillion. Last year, DTCC settled more than $1.88 quadrillion in securities transactions. DTCC has operating facilities in multiple locations in the United States and overseas. For more information on DTCC, visit www.dtcc.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.