“NYSE co-owned clearinghouse wins CFTC approval” (Reuters) and “CFTC Grants License to New York Portfolio Clearing” (Bloomberg)
News Articles
New York Portfolio Clearing, a start-up clearinghouse co-owned by NYSE Euronext, won regulatory approval to clear derivatives, paving the way for competition with futures exchange giant CME Group Inc. NYPC, jointly owned by the Big Board's parent and the Depository Trust and Clearing Corp, will clear interest rate futures offered by NYSE Euronext's U.S. futures exchange, NYSE Liffe.
But the CFTC withheld approval of a key part of NYPC's business plan, the ability to offset margins deposited at the clearinghouse to back futures against margins put up to guarantee holdings in Treasury securities. The so-called cross-margining would have cut costs substantially for traders who now use CME.
Publication
Date
February 1, 2011
Publication
Date
February 1, 2011
Cross References
CEA Sec. 5b