News Releases

 
NYSE Liffe U.S. Announces the Launch of DTCC GCF Repo IndexTM Futures
-Innovative New Product Tracking the $400 Billion GCF Repo® Market- 
-Exclusive Index License Agreement on DTCC GCF Repo IndexTM-
-Will Enhance Liquidity and Efficiency in the U.S. Repo Markets-

--Tom Callahan of NYSE Liffe U.S. and Gary Chan of DTCC Discuss
DTCC GCF Repo Futures:  http://youtu.be/YW--G2FBlD0--

New York, Jan. 4, 2012– NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext (NYX), today announced it has secured an exclusive license to launch futures contracts based on The Depository Trust and Clearing Corporation’s proprietary DTCC GCF Repo IndexTM.   The DTCC GCF (General Collateral Finance) Repo IndexTM was created to enhance transparency and liquidity in the multi-billion-dollar GCF Repo® market.  It tracks the average interest rate paid each day for the most-traded general collateral repos involving U.S. Treasury securities, Agency securities and Agency Mortgage-Backed securities.  NYSE Liffe U.S. listed futures on the DTCC GCF Repo Index™ are expected to launch in early 2012 and will benefit from the powerful ‘one-pot’ margin efficiencies of New York Portfolio Clearing (NYPC).

“NYSE Liffe U.S. is excited to extend its successful partnership with DTCC to bring our customers another important tool to better manage risk,” said Thomas F. Callahan, CEO, NYSE Liffe U.S.   “Futures based on the DTCC GCF Repo IndexTM are an innovative new product designed to improve liquidity and efficiency in the U.S. financing markets. These products will allow financing desks to better hedge interest rate exposure using a liquid, transparent and centrally cleared futures instrument.  Initial feedback from customers indicates significant demand for these products and we expect them to quickly develop into a new short-term interest rate benchmark representing actual, fully-collateralized transactions in the underlying cash Treasury, Agency and Agency MBS markets.”

“Having a futures contract on NYSE Liffe U.S. directly linked to the DTCC GCF Repo IndexTM will give repo market participants a highly useful hedging tool, something they’ve been seeking for a long time,” said Murray Pozmanter, DTCC managing director and general manager, Clearing Services.  “In turn, the ability to hedge cash market repo contracts is likely to bring more participants and more liquidity into this market.  And finally, the ability to take advantage of the one-pot margining efficiencies offered by NYPC makes this an even more attractive contract and useful market tool.”

The DTCC GCF Repo IndexTM is the financial services industry’s first index to list average daily interest rates for General Collateral Finance repurchase agreements or the ‘GCF Repo®’ market, which clear at DTCC’s Fixed Income Clearing Corporation (FICC).  With index values published daily on the DTCC website at no charge, this index provides a highly transparent view of the repo trading activity netted each day and settled as part of the clearing process for all U.S. government securities trades.  Repos are typically a form of short-term secured loan that involves the sale of a security and the subsequent repurchase of the same security.  This data is utilized by a range of market participants around the world, including bank financing desks, interest rate swap traders, and industry regulators.

Futures on the DTCC GCF Repo IndexTM will enable traders to more effectively manage interest rate exposure via a new short term benchmark tied to actual, collateralized repo transactions.  These products will clear at NYPC, and therefore benefit from the features offered by this innovative clearing mechanism that combines the capital efficiencies achieved by calculating margin requirements based on the total risk within a portfolio of both FICC-cleared repos and futures. Trading on the LIFFE CONNECT® platform, these futures will be listed alongside the highly liquid NYSE Liffe U.S. Eurodollar and US Treasury Futures.

 

About NYSE Liffe U.S.
A unit of NYSE Euronext, NYSE Liffe U.S. is a partnership with six leading market participants, Citadel Securities, DRW Ventures LLC (an affiliate of DRW Trading Group), GETCO, Goldman Sachs, Morgan Stanley, and UBS.  It is a global, multi-asset class futures exchange trading a diverse range of products, including the successful Eurodollar and U.S. Treasury interest rate products, a suite of MSCI-based futures and liquid precious metals contracts.  NYSE Liffe U.S. utilizes the proven LIFFE CONNECT® trading platform designed and maintained by NYSE Technologies that matched more than 4 million contracts per day on the NYSE Liffe markets in Europe in 2010.  The exchange offers a wide range of global connectivity options allowing members to efficiently transact on the platform in a highly cost efficient manner.

About DTCC
DTCC, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC's depository provides custody and asset servicing for more than 3.6 million securities issues from the United States and 121 other countries and territories, valued at US$36.5 trillion. In 2010, DTCC settled nearly US$1.66 quadrillion in securities transactions. DTCC has operating facilities and data centers in multiple locations in the United States and overseas. For more information, visit www.dtcc.com.

Disclaimer and 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 2010 ("document de référence") filed with the French Autorité des Marchés Financiers (Filed on April 19, 2011 under No. D.11-0333), 2010 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: Eric Ryan
Phone: 212.656.2411
Email:  eryan@nyx.com