-Clearing Through Options Clearing Corporation to Begin at the End of the First-Quarter 2009-
NYSE Liffe Announces Clearing Relationship with OCC
New York, October 14, 2008 – NYSE Liffe, LLC, the U.S. futures exchange of NYSE Euronext (NYX), today announced that it has chosen The Options Clearing Corporation (OCC), the world’s largest derivatives clearing organization, as its clearing house. This clearing function will become operational before the end of the first-quarter 2009, with minimal conversion required for NYSE Liffe customers.
“In these volatile times, it was essential for NYSE Liffe to find a strong, established clearing solution to offer unquestionable reliability for our members,” said Thomas F. Callahan, NYSE Euronext Executive Vice President, Head of U.S. Futures. “As the world’s number one derivatives clearinghouse by volume, OCC is the natural partner for NYSE Liffe. OCC offers the flexibility, dependability and experience needed to help us build an innovative and competitive U.S. futures platform. OCC and NYSE Euronext have had a long and successful partnership, and expanding that relationship to include NYSE Liffe puts us in the strongest possible competitive position.”
“OCC is very pleased to have been selected as the clearinghouse for NYSE Liffe. This decision by NYSE Euronext is a credit to OCC’s futures clearing capability, experienced staff, efficient production processing and state-of-the-art technology, and to our proven risk management,” said Michael E. Cahill, OCC President and Chief Operating Officer. “NYSE Liffe represents an important expansion to the suite of products comprising OCC’s futures clearing business.”
As the first clearinghouse to receive a ‘AAA’ credit rating from Standard & Poor’s, The Options Clearing Corporation manages risk on more open interest than any clearinghouse in the world. The OCC manages that risk through a three-tiered system of stringent membership standards, appropriate and adequate margin levels and a clearing fund of $4.4 billion. This arrangement gives NYSE Liffe customers confidence in the security of their margin debts combined with industry-leading technology and an established, cost-effective global clearing solution.
NYSE Liffe, which received Designated Contract Market (DCM) status on August 21 and launched on September 8, 2008, provides a fully transparent, liquid market for 100 oz. gold futures, 5,000 oz. silver futures, options on gold and silver futures, and mini-sized 33.2 oz. gold and 1,000 oz. silver futures. Utilizing the proven LIFFE CONNECT(R) trading platform designed and maintained by NYSE Euronext Technology, NYSE Liffe plans to introduce new products and innovative services in 2009.
For more information, please visit: http://www.nyx.com/nyseliffe
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
OCC, founded in 1973, is the world’s largest derivatives clearing organization and was the first clearinghouse to receive a 'AAA' credit rating from Standard & Poor's Corporation. Operating under the jurisdiction of the Securities and Exchange Commission and the Commodity Futures Trading Commission, OCC provides clearing and settlement services for the American Stock Exchange, Boston Options Exchange, Chicago Board Options Exchange, CBOE Futures Exchange, International Securities Exchange, NASDAQ Options Market, NASDAQ OMX PHLX, NYSE Arca, OneChicago and Philadelphia Board of Trade. More information about OCC is available through its Web site at www.optionsclearing.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.
Contact: Jim Binder/OCC
Contact: Eric Ryan/NYSE Euronext