NYSE Liffe U.S. To Launch Futures On DTCC GCF Repo IndexTM Products July 16
NYSE Liffe U.S., the innovative U.S. futures exchange of NYSE Euronext (NYX) today announced that it will begin trading futures based on the Depository Trust and Clearing Corporation’s proprietary DTCC GCF Repo Index TM on July 16, 2012, subject to regulatory approval. Designed to track the $400 billion GCF Repo ® market, futures on DTCC GCF Repo Index TM products are licensed to trade exclusively on NYSE Liffe U.S. and will clear at NYPC. Calculated using actual, fully-collateralized transactions in the underlying cash Treasury, Agency and Agency Mortgage-Backed markets, the DTCC GCF Repo Index™ follows the average interest rate paid each day for the most actively traded U.S. repo market.
“In our ongoing effort to deliver efficiency to the U.S. futures market, NYSE Liffe U.S. is proud to launch futures on the DTCC GCF Repo Index™,” said Tom Callahan, CEO, NYSE Liffe U.S. “GCF Repo Futures offer the industry a new and more reliable short-term interest rate benchmark for market participants to precisely hedge critical business risks. Based on an index of actual, fully collateralized and centrally cleared financing transactions, we expect these products to quickly become a fundamental tool for the management of short term interest rate risk.”
About DTCC GCF Repo Index TM Futures
The DTCC GCF Repo Index TM is the financial services industry’s first index to list average daily interest rates for General Collateral Finance repurchase agreements or the multi-billion-dollar GCF Repo ® market, which clears at DTCC’s Fixed Income Clearing Corporation (FICC). Futures on the DTCC GCF Repo Index TM will enable traders to more effectively manage interest rate exposure via a new short-term benchmark tied to actual, collateralized repo transactions. Traded on NYSE Liffe U.S., these products will clear at NYPC, and therefore benefit from the features offered by this innovative ‘one pot‘ clearing mechanism that combines the capital efficiencies achieved by calculating margin requirements based on the total risk within a portfolio of both FICC-cleared repos and futures. Trading on the LIFFE CONNECT ® platform, these futures will be listed alongside the highly liquid NYSE Liffe U.S. Eurodollar and US Treasury Futures.
For more information and market data, please visit: http://www.nyseliffeus.com and http://youtu.be/YW--G2FBlD0 . About NYSE Liffe U.S. A unit of NYSE Euronext, NYSE Liffe U.S. is a partnership with eight leading market participants, Citadel Securities, DRW Ventures LLC (an affiliate of DRW Trading Group), GETCO, Goldman Sachs, Morgan Stanley and UBS. It is a global, multi-asset class futures exchange trading a diverse range of products, including the successful Eurodollar and U.S. Treasury interest rate products, a suite of MSCI-based futures and liquid precious metals contracts. NYSE Liffe U.S. utilizes the proven LIFFE CONNECT® trading platform designed and maintained by NYSE Technologies that matched approximately 4.5 million contracts per day on the NYSE Liffe markets in Europe in 2011. The exchange offers a wide range of global connectivity options allowing members to efficiently transact on the platform in a highly cost efficient manner. For more information, please visit www.nyseliffeus.com. Disclaimer and 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 2011 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.Select the service that is right for you!
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