NYPC Launches NYPC PRIME™ to Estimate Capital Efficiencies of "One-Pot" Margining

NEW YORK, March 12, 2012 /PRNewswire/ -- New York Portfolio Clearing, LLC (NYPC), the innovative clearing platform for fixed income derivatives, announced today the launch of its Portfolio Risk Interactive Margin Estimator (NYPC PRIME™), a Value-at-Risk (VaR) calculator that estimates the "one-pot" margin savings clearing members can achieve for proprietary interest rate futures cleared at NYPC and certain cash positions cleared at the Fixed Income Clearing Corporation (FICC) subsidiary of The Depository Trust & Clearing Corporation (DTCC). NYPC PRIME™ is currently available without charge on NYPC's website for use by current and prospective clearing members.

"NYPC PRIME™ helps our current and prospective members understand the savings associated with 'one-pot' margining, creating a compelling proposition for heads of trading desks, traders themselves and product controllers looking to realize the significant margin reductions that are possible when clearing with NYPC," said Ira Krulik, Chief Operating Officer, NYPC. "Now users can very easily see how our platform can return capital and better manage risk."

Users of NYPC PRIME™ can upload position files or simply enter free-text data—complete with drop-down position recognition—to create portfolios for calculation. Once a portfolio—real or hypothetical—is created, NYPC PRIME™ estimates the VaR margin amount on demand.

NYPC PRIME™ also allows users to:

• Estimate their VaR margin charges for certain stand-alone cash U.S. Treasury positions cleared at FICC or stand-alone futures contracts cleared at NYPC
• Perform scenario analysis to observe the margin impact of altering a position, portfolio or market strategy
• Drill down beyond the desk level to view each trader's portfolio to get a sense of their implicit margin requirements.

"With its sophisticated engine and user-friendly interface, NYPC PRIME™ highlights the innovation and opportunity our members have come to expect from clearing with NYPC as we continuously seek to leverage the benefits of technology to transform the clearing experience," Mr. Krulik continued.

"NYPC PRIME™ is part of our continued drive to bring greater transparency, competition and innovation to the marketplace. We're excited to introduce our current and prospective members to this latest facet of our award winning platform," said Murray Pozmanter, NYPC Interim CEO, board member and DTCC managing director, Fixed Income Clearance and Settlement.

When uploading portfolios, users can follow the same convention used in DTCC's Report Center for their futures and cash positions. For futures, this convention requires the following: exchange symbol, futures contract symbol, product type, expiry year and expiry month. For cash positions, the CUSIP identifier can be used. When entering positions manually, users can enter the identifiers or utilize the drop-down position recognition functionality. The development of NYPC PRIME™ benefitted from client beta testing.

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

For more information, please visit our website: www.nypclear.com. http://www.nypclear.com/sites/default/files/FAQ_nypcprime.pdf 

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 The 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
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.

All information and documentation contained herein is for informational purposes only.  Neither NYPC, NYSE Euronext, DTCC nor any of their respective subsidiaries, affiliates, servants or agents is responsible for any errors or omissions contained in this publication.

© 2010–12 NYPC. All rights reserved. NYPC, NEW YORK PORTFOLIO CLEARING, the Cylinder Logo and NYPC PRIME are trademarks of New York Portfolio Clearing, LLC. All other names and marks are the property of their respective owners.

SOURCE New York Portfolio Clearing, LLC (NYPC)