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NYSE Liffe U.S. Announces New Eurodollar and US Treasury Futures

Submitted by Chopshop on 04/06/2010 15:57 -0400

On March 10th, NYSE
Euronext (NYX) announced that it sold a significant minority ownership
stake in its U.S. futures exchange, NYSE Liffe U.S., to six leading
firms and liquidity providers: Citadel Securities, DRW Ventures LLC
(an affiliate of DRW Trading Group), GETCO, Goldman Sachs, Morgan
Stanley, and UBS.

"With the completion of this
transaction, NYSE Liffe U.S. is well positioned to deliver innovation,
competition and value to the U.S. derivatives marketplace," said Duncan
L. Niederauer, Chief Executive Officer, NYSE Euronext. "We are
committed to building a diverse, customer-driven U.S. futures exchange,
and are confident that partnering with our clients is the right
strategy for success."

"The NYSE Liffe U.S. partnership includes some of the most sophisticated
and forward-thinking participants in today’s global markets," said
Thomas F. Callahan, Chief Executive Officer, NYSE Liffe U.S.

It didn't take long for these seven
sisters to act. As digital cash flows across 21st century capital
markets with the speed of a Mahwah
server farm fart, increasingly inter-connected exchanges continue
to roll out new derivative product offerings. With so many market
participants discussing inflation expectations, deflationary data and central
bank exit strategies, the NYSE Liffe U.S. has stepped up to the
plate by pitching new interest rate futures contracts and futures
options to be launched Q3 / Q4 2010.

NYSE

Liffe U.S to Offer Full Suite of Interest Rate Futures

- Eurodollar and 2-year, 5-year, 10-year and 30-year US
Treasury Futures to Launch Q3 2010 -

- 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.

- advertisements -

Tue, 03/29/2011 - 01:59 | 1111764 fiona

Tue, 04/06/2010 - 21:48 | 289268 mattw

Unfortunately they could inflate everything except housing market. So I guess the only hope our economy can be saved is that these genius can figure out some derivatives based on housing price. Let's keep our finger crossed.

Wed, 04/07/2010 - 12:04 | 289832 Clinteastwood

If their manipulations would produce the desired inflation that would be one thing. Unfortunately, looks like the only thing these derivativemeisters are good at is Ponzi then collapse.

Tue, 04/06/2010 - 20:59 | 289229 bondvigilante

Ken Griffin(Citadel), Don Wilson(DRW), Goldman/MS/UBS, and GETCO all pillars of integrity and transparency! Has the CDO/CDS disaster happened so long ago already that fracturing any market seems like a good idea? These firms want to trade the treasury futures market in an OTC fashion. Rape and pillage. I assure you this is not for the benefit of the market place and it's participants. Be wary of these firms willing to "help" you.

Tue, 04/06/2010 - 18:19 | 289128 jm

Why play in the squid's back yard?

CME had these contracts for a while now.

Tue, 04/06/2010 - 17:58 | 289115 Buck Johnson

They are trying to find something else to bubble and blowup at a later date. All we are is a bubble economy.

Tue, 04/06/2010 - 16:28 | 289022 Gimp

Looks like we really learned our lesson from the last derivative market meltdown???

Can I print financial instruments please with absolutely nothing behind them.

Wed, 04/07/2010 - 11:39 | 289735 Flyingtrader

What is this "lesson" that the NYSE should learn from? These products already exist and have been traded for years without major problems. Do you have a problem with CBOT/CME product as well?

Wed, 04/07/2010 - 11:09 | 289681 Ripped Chunk

You don't even need an expensive printer. Proceed.....

Tue, 04/06/2010 - 17:00 | 289068 seventree

Why not. You have demonstrated full disclosure and transparency.

NYSE Liffe U.S. Announces New Eurodollar and US Treasury Futures

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