NYPC Awarded "Best Innovation by a Clearinghouse, North America" by Futures and Options World, 2011
NEW YORK, Nov. 17, 2011 /PRNewswire/ -- New York Portfolio Clearing, LLC (NYPC), the innovative new clearing platform for interest rate futures, today announced that it has been awarded "Best Innovation by a Clearing House, North America," by Futures and Options World (FOW), 2011.
Walt Lukken , Chief Executive Officer of NYPC, said, "This award is further testament to the tremendously positive reception NYPC has experienced since its launch earlier this year. We are honored to be this year's recipient, and look forward to building on the innovative "one-pot" model that has proven its ability to generate capital and operational efficiencies for our clients and the broader market."
A 50/50 joint venture of the NYSE Euronext and The Depository Trust & Clearing Corporation, NYPC's unique market innovation is the one pot margining of interest rate futures positions cleared by NYPC with fixed income cash positions cleared by the DTCC's Fixed Income Clearing Corporation. On March 21, 2011, NYPC opened its doors for business, after a nearly two-year period of market anticipation and intensive regulatory review and approval involving the CFTC, SEC and Federal Reserve. It is the first and only derivatives clearinghouse to deliver unique capital efficiencies by netting and reducing risks between a clearing member's portfolio of cash bonds and derivatives.
FOW, a leading industry publication, selected a global panel of senior market experts to serve as judges and ensure broad industry representation. The panel sought to identify innovations with the potential to change the derivatives market for the better. The judges considered NYPC's one-pot margining a crucial "leap forward in the move towards cross-margining," a process that that will become increasingly important in coming years.
"After years of hard work, careful planning and deliberate execution, this acknowledgment serves as industry recognition of our unique model, the partnership that made it possible, and the tangible benefits it offers the marketplace in terms of innovation, capital efficiency and effective competition," said Tom Callahan , CEO, NYSE Liffe U.S. "I sincerely thank my colleagues, partners and customers for their commitment to this groundbreaking project."
Murray Pozmanter , Managing Director, Clearing Services, DTCC, and NYPC Board Chairman, said, "This is another accomplishment for NYPC and further confirmation of the market's need for innovative solutions and greater choice. At a time when capital and risk are front and center, we are proud to offer solutions that drive market evolution and reinforce the integrity of the financial markets."
In less than eight months of operations, NYPC has already cleared more than 13 million contracts and has over 800,000 contracts in total open interest, equaling nearly 9 percent of the open interest market-share for Eurodollar futures.
For more information, please visit: www.nypclear.com.
New York Portfolio Clearing, LLC (NYPC) is registered as a U.S. Derivatives Clearing Organization with the Commodity Futures Trading Commission. NYPC clears interest rate products and supports the cross-margining of fixed income cash products from Depository Trust & Clearing Corporation's Fixed Income Clearing Corporation with their related, offsetting derivatives trades in a "single pot". For more information, please visit: www.nypclear.com.
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, please visit www.dtcc.com.
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 approximately 8,000 listed issues (excluding European Structured Products), NYSE Euronext's equities markets—the New York Stock Exchange, NYSE Euronext, NYSE Amex, NYSE Alternext and NYSE Arca—represent one-third of the world's equities trading, the most liquidity of any global exchange group. NYSE Euronext also operates NYSE Liffe, one of the leading European derivatives businesses 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.
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