, Nov. 29, 2013 /PRNewswire/ -- IntercontinentalExchange Group (NYSE: ICE) and The Depository Trust & Clearing Corporation (DTCC) today announced plans to transition the clearing of interest rate futures listed on NYSE Liffe U.S. from New York Portfolio Clearing (NYPC) to ICE Clear Europe centralizing the trading and clearing of ICE's global interest rate product portfolio. NYPC's operations will be wound down and open interest transferred by the third quarter of 2014, subject to regulatory approval.
Further extending the strong relationship between NYSE and DTCC, ICE has assumed NYSE's license for futures on the DTCC GCF Repo Index®. ICE and DTCC are also in discussions regarding a new cross-margining solution that would offer capital efficiencies across a broader range of global interest-rate products.
, CEO of NYSE Liffe U.S. will serve as the CEO of NYPC through the transition and wind down period.
"DTCC is dedicated to delivering to our clients innovative and effective solutions that help them preserve capital and reduce risk for the trading of a wide range of investment instruments," said
, managing director and general manager, Clearing Services, DTCC. "We believe there are great benefits and cost savings in cross-margining and we are pleased to be working with ICE in exploring further ways to bring these types of capabilities to our mutual clients and the industry at large."
"ICE has always been focused on customer needs by providing innovative solutions to business and regulatory concerns," said
, CEO, NYSE Liffe U.S. and CEO, NYPC. "We believe that the centralization of clearing services for our global interest rate futures provides customers with significant capital and infrastructure efficiencies at a critical time."
Since its launch in
, futures on the DTCC GCF Repo Index® have experienced widespread market adoption with a diverse range of banks, hedge funds and asset managers adopting the product as a tool for their risk management needs. Open interest in the product complex has reached an all-time high as more market participants integrate these products into their global portfolios.
NYPC has saved members approximately
in margin associated with fixed income and futures portfolios since coming to market in March 2011. In recognition of its innovative cross-margining capabilities, NYPC was awarded "Best Innovation by a Clearinghouse,
Futures and Options World
About IntercontinentalExchange Group, Inc.
IntercontinentalExchange Group, Inc. (NYSE: ICE) is the leading network of regulated exchanges and clearing houses for financial and commodity markets. ICE delivers transparent, reliable and accessible data, technology and risk management services to markets around the world through its portfolio of exchanges, including the New York Stock Exchange, ICE Futures, Liffe and Euronext.
Trademarks of ICE and/or its affiliates include IntercontinentalExchange, ICE, ICE block design, NYSE Euronext, NYSE, New York Stock Exchange, LIFFE and Euronext. Information regarding additional trademarks and intellectual property rights of IntercontinentalExchange Group, Inc. and/or its affiliates is located at
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 - Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended
December 31, 2012
, as filed with the SEC on
February 6, 2013
DTCC has operating facilities and data centers around the world and, through its subsidiaries, automates, centralizes, and standardizes the post-trade processing of financial transactions for thousands of institutions worldwide. With 40 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry, simplifying the complexities of clearance, settlement, asset servicing, global data management and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, derivatives, money market instruments, syndicated loans, mutual funds, alternative investment products, and insurance transactions. In 2012, DTCC's subsidiaries processed securities transactions valued at approximately
quadrillion. Its depository provides custody and asset servicing for securities issues from 131 countries and territories valued at
. DTCC's global trade repositories record more than
in gross notional value of transactions made worldwide.