NYSE, DTCC To Open Derivatives Clearing House

NEW YORK (AP) — NYSE Euronext and the Depository Trust & Clearing Corp. said Thursday they would create a fixed-income derivatives clearing house in an effort to provide a single view of risk across asset classes.

The 50-50 joint venture will be called the New York Portfolio Clearing. It is expected to be operational in the second quarter of 2010, once it gets necessary regulatory approvals.

NYSE CEO Duncan Niederauer said it is designed to help lower the "traditional barriers between the cash and derivatives markets." NYSE plans to commit a $50 million financial guarantee to ensure the fund. ...