-Eurodollar Futures Debut on NYSE Liffe U.S. March 21, U.S. Treasury Futures on March 28-
NYSE Liffe U.S. to Launch Interest Rate Futures on March 21 and March 28
-Bringing Innovation, Competition and Unique Value to Global Futures Market Participants-
New York, March 2, 2011 – NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext (NYX), today announced launch dates for U.S. Treasury and Eurodollar futures products to coincide with the launch of New York Portfolio Clearing (NYPC), the innovative new clearing joint venture with The Depository Trust & Clearing Corporation (DTCC). NYSE Liffe U.S. will begin trading Eurodollar futures on March 21, 2011, and will launch 2-year, 5-year and 10-year U.S. Treasury futures along with U.S. Bond and Ultra Bond futures products on March 28, 2011, subject to regulatory filings. These products will be cleared through NYPC, which has received all the required approvals from the Commodity Futures Trading Commission (CFTC) and the Securities Exchange Commission (SEC).
“As a result of the tremendous efforts of the NYSE Liffe U.S., DTCC and NYPC teams, we are thrilled to have received the final approvals necessary to offer this compelling and highly competitive choice to global market participants. The unique combination of these interest-rate products trading on NYSE Liffe U.S. and the clearing efficiencies of NYPC will create an entirely new transaction and risk management paradigm,” said Thomas F. Callahan, CEO, NYSE Liffe U.S. “We thank the CFTC and SEC for their coordinated and thorough review of New York Portfolio Clearing.”
Interest-rate futures traded on NYSE Liffe U.S. will benefit from the powerful capital efficiencies of NYPC’s ‘one-pot’ margining which, for the first time ever, will assess margin across fixed income securities, repos and interest rate futures to more accurately capture the actual risk of a clearing member’s portfolio. Additionally, all U.S. Treasury Futures traded on NYSE Liffe U.S. will benefit from an innovative, streamlined delivery process allowing for the seamless netting of futures and cash securities. These innovations provide unique benefits to global futures market participants by reducing the cost, complexity and risk inherent in the traditional trading and clearing model.
"We thank our members and clients for their unwavering commitment as we have worked in partnership toward planning this revolutionary cross-platform launch,” said Lynn Martin, Chief Operating Officer of NYSE Liffe U.S. “We are excited to bring real competition and choice to the U.S. futures market through this one-of-a-kind service.”
NYSE Liffe U.S. is a global, multi-asset class futures exchange. In addition to liquid mini-sized gold and silver futures, NYSE Liffe U.S. will become the sole U.S. exchange for MSCI-based index futures products on June 17, 2011. On or before this date, futures on two of MSCI's most widely tracked global benchmarks, MSCI Emerging Markets and MSCI EAFE, will cease trading on CME and migrate to NYSE Liffe U.S.
About NYSE Liffe U.S.
In March 2010, the exchange sold a substantial minority ownership stake to six leading market participants, Citadel Securities, DRW Ventures LLC (an affiliate of DRW Trading Group), GETCO, Goldman Sachs, Morgan Stanley and UBS. NYSE Liffe U.S. utilizes the proven LIFFE CONNECT® trading platform designed and maintained by NYSE Technologies that matched nearly 4.7 million contracts per day in 2010 on the NYSE Liffe European markets. Offering a range of global connectivity options, NYSE Liffe U.S. enables its members to efficiently transact on the platform in a highly cost-effective manner while also utilizing other NYSE Euronext exchanges with unique pricing incentives and simplified access.
For more information on NYSE Liffe U.S., please visit: www.nyse.com/nyseliffeus
New York Portfolio Clearing, LLC (NYPC) is registered as a U.S. Derivatives Clearing Organization with the Commodity Futures Trading Commission. NYPC will clear interest rate products and will support the cross-margining of fixed income cash products from Depository Trust & Clearing Corporation’s Fixed Income Clearing Corporation with their related, offsetting derivatives trades in a “single pot”. For more information, please visit: www.nypclear.com.
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 approximately 8,000 listed issues (excluding European Structured Products), 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.
DTCC, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, 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 their distribution networks. DTCC's depository provides custody and asset servicing for more than 3.6 million securities issues from the United States and 121 other countries and territories, valued at US$36.5 trillion. In 2010, DTCC settled nearly US$1.66 quadrillion in securities transactions. DTCC has operating facilities and data centers in multiple locations in the United States and overseas. For more information, please 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 2009 ("document de référence") filed with the French Autorité des Marchés Financiers (Filed on April 22, 2010 under No. D.10-0304), 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.