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NYSE LIFFE
U.S. COMPLETES
SALE OF OWNERSHIP STAKE
TO 6 LEADING MARKET PARTICIPANTS
Posted March 10, 2010
NEW YORK –
NYSE Euronext says it has sold a significant minority ownership stake in
its U.S.
futures exchange, NYSE Liffe
U.S., to six leading firms and
liquidity providers. The firms are: Citadel Securities, DRW Ventures LLC
(an affiliate of DRW Trading Group), GETCO,
Goldman Sachs, Morgan Stanley, and UBS.
NYSE Euronext will continue to be the
largest shareholder in NYSE Liffe
U.S., managing the exchange’s daily
operations. NYSE Liffe U.S. will continue to operate under
the supervision of a separate Board of Directors, chaired by James J.
McNulty, former CEO of the Chicago Mercantile Exchange.
“With the completion of this transaction, NYSE Liffe
U.S.
is well
positioned to deliver innovation, competition and value to the U.S.
derivatives marketplace,” says Duncan L. Niederauer, Chief Executive
Officer, NYSE Euronext. “We are committed to building a diverse,
customer-driven U.S. futures exchange, and are confident that partnering
with our clients is the right strategy for success.”
“The NYSE Liffe U.S. partnership includes some of the most sophisticated
and forward-thinking participants in today’s global markets,” adds
Thomas
F. Callahan, Chief Executive Officer, NYSE Liffe U.S. “The addition of a
world-class partner like DRW to this group will only accelerate our
efforts
to deliver a vibrant, liquid U.S. futures exchange.”
“Citadel Securities is committed to innovation as a means to promote
open,
fair and transparent markets. NYSE Euronext shares these principles and
we
welcome the opportunity to become a founding partner in this innovative
new
exchange,” states Patrik Edsparr, Global CEO of Citadel Securities.
Don Wilson, Founder and CEO of DRW Trading Group adds in a press
statement, “DRW’s partnership with NYSE Liffe U.S. is an exciting
opportunity to influence the evolution of the futures industry in this
time of unprecedented regulatory change.”
“GETCO has a long-standing tradition of supporting competition and
efficiency across the spectrum of global capital markets. We look
forward
to working with NYSE Euronext to build a world class U.S. futures
exchange,” says Dave Babulak, Managing Director of GETCO.
Reinhardt Olsen, North American Head of Exchange Traded Derivatives of
UBS
comments, “In closing this agreement with NYSE Euronext, UBS clearly
shows our
dedication to expanding our leadership presence in the listed
derivatives
marketplace and our commitment to delivering more trading options and
better value to our customers.”
NYSE Liffe U.S. is 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 as well as equity
index futures based on MSCI Emerging Markets, MSCI EAFE, and MSCI USA
indices. NYSE Liffe U.S.
has plans to further expand into futures on other
asset classes, including
U.S.
interest rate products.
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.
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