NYPC Announces Expansion of Cross-Margining to Market Professionals

NEW YORK, Aug. 9, 2012 /PRNewswire/ -- New York Portfolio Clearing, LLC (NYPC), a unique clearing platform for fixed income derivatives, announced today the expansion of its "one-pot" cross-margining platform to a larger pool of market professionals, following approval from the Commodity Futures Trading Commission and the Securities and Exchange Commission.

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As a vital step in NYPC's moves to expand its range of cleared products and its client base, the Market Professional program extends the "one-pot" model to a wider group of participants who will be able to benefit from the significant margin savings it generates.        

"NYPC continues to grow and develop and offer capital efficiencies to the market at a time when our clients need to manage their assets effectively" said Alexander (Sandy) Broderick, CEO.  "At a time of challenging market and trading conditions and increased regulatory focus, NYPC has already established itself as a significant player in derivatives clearing.  In the next few months, we plan to expand the "one-pot" model to include futures on the DTCC GCF Repo Index^™, followed next year by interest rate swaps cleared by LCH.Clearnet."

NYPC also announced the increase in Open Interest (OI) at the clearing house had reached one million contracts.

Broderick continued, "NYPC continues to attract an influential group of member firms and we are now receiving end-user requests for access to our one-pot model as they identify the benefits it offers.  I am confident that we will continue this growth as we move beyond this important milestone in our open interest."

Background: 

In March 2012, NYPC, LCH.Clearnet, DTCC, and NYSE Euronext announced plans to expand the existing combined "one-pot" cross-margining arrangement to include interest rate swaps cleared by LCH.Clearnet.

A joint venture of The Depository Trust & Clearing Corporation (DTCC) and NYSE Euronext (NYX), NYPC was created to deliver unique capital efficiencies to the market by evaluating and margining a clearing member's risk on a portfolio basis across related cash fixed income and derivative positions.  

For more information and a complete list of approved NYPC clearing members, please visit our website: www.nypclear.com.

For more information about the Market Professional program please contact NYPC directly on +1 212-855-5210 or see the website.

About NYPC

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 cleared by 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.

About DTCC

Through multiple operating facilities and data centers around the world, DTCC and its subsidiary companies automate, centralize, and standardize the processing of financial transactions for thousands of institutions worldwide. With almost 40 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry, simplifying the complexities of clearance, settlement, asset servicing, global data management and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, derivatives, money market instruments, syndicated loans, mutual funds, alternative investment products, and insurance transactions. In 2011, DTCC processed securities transactions valued at approximately US$1.7 quadrillion. Its depository provides custody and asset servicing for securities issues from 122 countries and territories valued at US$39.5 trillion. DTCC's global OTC derivatives trade repositories record more than US$500 trillion in gross notional value of transactions made worldwide across multiple asset classes. For more information, 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.

SOURCE New York Portfolio Clearing, LLC