NEW YORK, NY – April 13, 2010 – New York Portfolio Clearing (NYPC) today appointed Walter Lukken as Chief Executive Officer, effective May 1, 2010.
NYPC is the innovative joint venture of The Depository Trust & Clearing Corporation (DTCC) and NYSE Euronext (NYSE: NYX), created to deliver unique capital efficiencies to the market by evaluating and margining a clearing member’s risk on a portfolio basis across both cash bonds and derivatives. Announced in June 2009, NYPC is currently undergoing regulatory review and expects to be operational in the third quarter of 2010.
Since July 2009, Lukken has been serving as Senior Vice President in the Office of the General Counsel of the NYSE and as a board member for both NYSE Liffe in London and NYSE Liffe US. Prior to this role, Lukken, served as Acting Chairman of the Commodity Futures Trading Commission (CFTC) for 18 months and was also a Commissioner of the CFTC since 2002. At NYPC, Lukken will lead NYPC's drive to be the first clearing organization to margin cash fixed income positions and their natural derivatives hedges together, in a way designed to substantially improve both operational and capital efficiency.
“NYPC is a story of innovation, and Walt is a proven leader who can execute on this visionary partnership,” said Donald F. Donahue, Chairman and Chief Executive Officer of DTCC. “NYPC will be a catalyst for change in the U.S. futures market by delivering capital efficiency to its members and by introducing a unique, horizontal clearing model. Walt’s leadership and expertise are the perfect combination to lead this ambitious, new clearing house to success.”
“Walt is the ideal candidate to lead NYPC in opening the U.S. futures market to new competition,” said Duncan Niederauer, Chief Executive Officer of NYSE Euronext. "Walt is a respected voice in this industry with a unique and diverse set of experiences that will lend themselves well to this project. I am confident that under his leadership, NYPC will quickly grow to become a world-class clearing organization."
“I am thrilled to assume a leadership role in this dynamic new company,” said Lukken. “I look forward to using my extensive knowledge and relationships within the derivatives industry to help NYPC bring new competition, efficiency and innovation to the marketplace."
About Walter Lukken
Walter Lukken was named as Senior Vice President in the Office of the General Counsel of NYSE Euronext on July 16, 2009. While in this position he focused on global market structure issues, including the company's expansion in U.S. derivatives markets. Lukken was first appointed CFTC Commissioner in 2002 and served as Acting Chairman of the Commission from June 27, 2007 until Jan. 20, 2009. As a Commissioner, Lukken testified numerous times before Congress and represented the agency as part of the President's Working Group on Financial Markets. He also represented the Commission before international organizations and forums, including the International Organization of Securities Commissions (IOSCO) and the Committee of European Securities Regulators (CESR). Lukken served as the first chairman of the CFTC's Energy Markets Advisory Committee, which was created in February 2008 to address the critical regulatory issues connected to the energy futures markets. He also served as chairman of the CFTC's Global Markets Advisory Committee (GMAC) from October 2003 through January 2008, fostering an industry dialogue on global regulatory issues facing the futures industry. Prior to joining the CFTC, Lukken served for five years as counsel on the professional staff of the U.S. Senate Agriculture Committee under Chairman Richard Lugar, specializing in futures and derivatives markets. A native of Richmond, Indiana, he received his B.S. degree in finance with honors from the Kelley School of Business at Indiana University, and his Juris Doctor degree from Lewis and Clark Law School in Portland, Oregon. Lukken is a member of the Illinois Bar.
NYPC is a 50/50 joint venture between NYSE Euronext and DTCC. NYSE Euronext plans to commit a $50 million financial guarantee as an additional contribution to reinforce the safety and soundness of the NYPC default fund. Pending required regulatory approvals, NYPC initially plans to clear interest rate products traded on NYSE Liffe
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), 2008 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.