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NYSE EURONEXT LAUNCHES PAN-EUROPEAN MTF WITH SUPPORT FROM EUROCCP
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PLAN IS TO OFFER MULTIPLE CLEARING SOLUTIONS IN 2009
London, Paris 8 October 2008 – NYSE Euronext, the world's leading and most diverse exchange group, today announced it has appointed EuroCCP, a wholly-owned subsidiary of the Depository Trust & Clearing Corporation (DTCC) based in London, as clearer from day one of the launch of its Multilateral Trading Facility (MTF). EuroCCP will act as a Central Counterparty (CCP), enabling anonymous post-trade processing, providing netting and a full range of risk management services to NYSE Euronext’s new pan-European MTF. The MTF is scheduled to be launched in November this year.
In addition, NYSE Euronext has committed to provide access to its trade feed to all four pan-European clearing providers for its MTF once these CCPs have established the necessary interoperability. Besides EuroCCP, these pan-European clearing providers are: the European Multilateral Clearing Facility (EMCF), a Dutch Clearing house; LCH.Clearnet, the independent Anglo-French clearing house and SIX X-clear, the Swiss central counterparty. The four clearing houses will work to establish links amongst themselves so that NYSE Euronext can offer customers of its new MTF a choice of central counterparty in 2009.
NYSE Euronext’s new European MTF will offer trading in the most actively-traded European blue-chip shares that are not already offered on its existing market. It will leverage on the existing connectivity of its European platform, allowing all existing European customers the ability to trade pan-European stocks upon launch of the MTF. Currently, the Company is finalizing its consultation with customers about the launch principles, including pricing. The new MTF will also be the first market to operate on NYSE Euronext’s new Universal Trading Platform (UTP) which utilizes advanced and resilient technology designed to provide the industry’s most innovative, fast and reliable trading platform.
Cees Vermaas, Executive Director, European Sales who is leading the new pan-European MTF project at NYSE Euronext said, "This is a significant breakthrough in rationalizing the post-trade infrastructure in Europe and is in line with the EU Commission’s voluntary Code of Conduct, which requires that market infrastructures offer reciprocal open access."
"We’re delighted to be the first exchange to offer freedom of clearing choice to our customers who will be trading on our new pan-European MTF. We believe all four clearing and settlement providers will work to implement links to each other to be ready to clear the full range of stocks from 14 European countries in the course of 2009. This will considerably enhance competition, delivering quality of service, reducing cost and lowering risk for our customers."
About NYSE Euronext’s new European MTF
The pan-European platform will be a central limit order book trading service on European blue chips.
It will be open to all users and is designed to be attractive to high frequency traders. It will be regulated by the AFM (Dutch Regulator). The MTF will trade a selected group of blue-chip European stocks which will be phased in during Q4 2008 and Q1 2009. Starting mid-November, the first phase of securities will include German, Italian, Swedish, Norwegian and Finnish stocks.
About NYSE Euronext
NYSE Euronext (NYX) operates the world’s leading and most liquid exchange group, and seeks to provide the highest levels of quality, customer choice and innovation. Its family of exchanges, located in six countries, includes the New York Stock Exchange, the world's largest cash equities market; Euronext, the Eurozone's largest cash equities market; Liffe, Europe's leading derivatives exchange by value of trading; NYSE Liffe, the company’s U.S. futures business and NYSE Arca Options, one of the fastest growing U.S. options trading platforms. NYSE Euronext offers a diverse array of financial products and services for issuers, investors and financial institutions in cash equities, options, futures and derivatives, ETFs, bonds, market data, and commercial technology solutions. As the world’s largest exchange group by number of listings and market capitalization, NYSE Euronext is home to more than 6,500 listed issues (as of Oct. 1, 2008) with total global market capitalization more than four times that of any other exchange group. The average daily trading value of NYSE Euronext's equity exchanges represent more than one-third of the world's cash equities trading. NYSE Euronext is part of the S&P 500 index and the only exchange operator in the S&P 100 index. For more information and free real-time stock prices for all NYSE-listed securities, please visit www.nyx.com.
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 reference document for 2007 ("document de référence") filed with the French Autorité des Marchés Financiers (Registered on May 15, 2008 under No. R. 08-054), 2007 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.
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