NYSE Euronext, DTCC To Create Clearinghouse For Fixed Income Derivatives
June 22, 2009
NYSE Euronext and the Depository Trust & Clearing Corp. said last week that they are teaming up to create a clearing house for U.S. fixed income derivatives.
The 50-50 joint venture, called New York Portfolio Clearing (NYPC), combines NYSE Euronext's new futures exchange, Liffe US, and the DTCC's Fixed Income Clearing Corporation (FICC), which processes more than $4.1 trillion daily in U.S. government and mortgage-backed securities transactions.
Approved by the boards of both companies, NYPC should be operational in the second quarter of 2010, subject to definitive documentation and regulatory approval. Dennis Dutterer, former chief exeecutive officer of the Clearing Corp. in Chicago, has been named the interim chief executive while the search is on for a permanent CEO.
Current gold and silver futures contracts listed on NYSE Liffe US will continue to be cleared through Chicago's Options Clearing Corp. but NYPC will clear future interest rate products listed on the exchange.
The deal between NYSE Euronext and DTCC is an attempt by the nine-month-old NYSE Liffe US to loosen the stronghold of the CME Group, which has a 98 percent share of the U.S. futures volume.
