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

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.