NYSE Euronext announces equity investment in its U.S. Futures Exchange, NYSE Liffe U.S.

NYSE Euronext announces equity investment in its U.S. Futures Exchange, NYSE Liffe U.S.

 

30/10/09

NYSE Euronext (NYX) today announced the signing of a binding agreement with several leading global banks and liquidity providers — Citadel Securities, GETCO, Goldman Sachs, Morgan Stanley, and UBS — to sell a significant equity interest in NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext. NYSE Euronext will remain the largest shareholder in the entity, which will bring substantial competitive and operational benefits to the marketplace.

NYSE Euronext will continue to manage the day-to-day operations of NYSE Liffe U.S., which will operate under the supervision of a separate Board of Directors, chaired by Jim McNulty, and Chief Executive Officer Thomas F. Callahan. The transaction is expected to close shortly, subject to regulatory review.

"This partnership further demonstrates the commitment of NYSE Euronext to create exceptional value through innovation both for and with our customers," said Duncan L. Niederauer, Chief Executive Officer, NYSE Euronext. "Today's announcement marks an important step in achieving our goal of establishing NYSE Liffe U.S. as a highly competitive, global multi-asset exchange."

Mr. Callahan added: “NYSE Liffe U.S. will effectively compete in the U.S. futures market by delivering innovative products and services, and by leveraging the market leading technology of NYSE Euronext. I am thrilled that this group of distinguished market leaders shares our vision for innovation and efficiency, and we look forward to working with them to accelerate the growth of NYSE Liffe U.S.”

NYSE Liffe U.S. launched trading in September 2008 as 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. The exchange expanded into equity index futures with the launch of futures on MSCI Emerging Markets, MSCI EAFE, and MSCI USA Indices in September 2009. NYSE Liffe U.S. has plans to further expand into futures on other asset classes, including U.S. interest rate products. NYSE Liffe U.S. utilizes the proven LIFFE CONNECT® trading platform designed and maintained by NYSE Technologies and used by NYSE Liffe in Europe.

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.