-NYSE Euronext to remain the largest shareholder of NYSE Liffe U.S.-
NYSE Euronext Announces Equity Investment in its U.S. Futures Exchange, NYSE Liffe U.S., by Leading Global Banks and Liquidity Providers
-Anticipated to significantly enhance competitive position and liquidity-
New York, Oct. 30, 2009 – NYSE Euronext (NYX) today announced the signing of a binding agreement with several leading global banks and liquidity providers — Citadel Securities, GETCO, Goldman Sachs, Morgan Stanley, and UBS — to sell a significant equity interest in NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext. NYSE Euronext will remain the largest shareholder in the entity, which will bring substantial competitive and operational benefits to the marketplace.
NYSE Euronext will continue to manage the day-to-day operations of NYSE Liffe U.S. , which will operate under the supervision of a separate Board of Directors, chaired by Jim McNulty, and Chief Executive Officer Thomas F. Callahan. The transaction is expected to close shortly, subject to regulatory review.
"This partnership further demonstrates the commitment of NYSE Euronext to create exceptional value through innovation both for and with our customers," said Duncan L. Niederauer, Chief Executive Officer, NYSE Euronext. "Today's announcement marks an important step in achieving our goal of establishing NYSE Liffe U.S. as a highly competitive, global multi-asset exchange."
Mr. Callahan added: “NYSE Liffe U.S. will effectively compete in the U.S. futures market by delivering innovative products and services, and by leveraging the market leading technology of NYSE Euronext. I am thrilled that this group of distinguished market leaders shares our vision for innovation and efficiency, and we look forward to working with them to accelerate the growth of NYSE Liffe U.S. ”
NYSE Liffe U.S. launched trading in September 2008 as a fully electronic, 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. The exchange expanded into equity index futures with the launch of futures on MSCI Emerging Markets, MSCI EAFE, and MSCI USA Indices in September 2009. NYSE Liffe U.S. has plans to further expand into futures on other asset classes, including U.S. interest rate products. NYSE Liffe U.S. utilizes the proven LIFFE CONNECT® trading platform designed and maintained by NYSE Technologies and used by NYSE Liffe in Europe.
The Options Clearing Corporation (OCC) acts as clearing house for NYSE Liffe U.S. futures on precious metals, MSCI index futures, as well as all ETF options and index options trading on NYSE Arca, creating the opportunity for unique margin efficiencies for NYSE Euronext customers. NYSE Liffe U.S. intends to clear its U.S. interest rate futures at New York Portfolio Clearing, its innovative joint venture with DTCC designed to offer significant transparency and capital relief to major market participants by offering “single pot” margining of cash bonds and interest rate derivatives, subject to regulatory approvals.
About NYSE Euronext
NYSE Euronext (NYX) is a leading global operator of financial markets and provider of innovative trading technologies. The company's exchanges in Europe and the United States trade equities, futures, options, fixed-income and exchange-traded products. With more than 8,000 listed issues, NYSE Euronext's equities markets -- the New York Stock Exchange, NYSE Euronext, NYSE Amex and NYSE Alternext as well as NYSE Arca – represent nearly 40 percent of the world's equities trading, the most liquidity of any global exchange group. NYSE Euronext also operates NYSE Liffe, the leading European derivatives business and the world's second-largest derivatives business by value of trading. The company offers comprehensive commercial technology, connectivity and market data products and services through NYSE Technologies. NYSE Euronext is in the S&P 500 index, and is the only exchange operator in the S&P 100 index and Fortune 500. For more information, please visit: http://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 2008 ("document de référence") filed with the French Autorité des Marchés Financiers (Registered on April 28, 2009 under No. R. 09-031), 2008 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.