The IntercontinentalExchange (ICE) and the Depository Trust and Clearing Corporation (DTCC) have announced that New York Portfolio Clearing (NYPC) will be wound down, with interest-rate futures listed on NYSE Liffe US moving to ICE Clear Europe.
NYPC is a joint venture between NYSE Euronext, which was bought by ICE earlier this year, and the DTCC. Under the aegis of the agreement, which ICE says it aimed at centralizing the trading and clearing of the firm's interest-rate product portfolio, NYPC will be wound down, and interest transferred by the third quarter of 2014. Lynne Martin, CEO at NYSE Liffe US, will helm NYPC during this period.
ICE has assumed NYSE Euronext's license for futures on the DTCC GCF Repo Index, and the exchange giant says that the two firms are in discussions over cross-margining solutions for participants.
"DTCC is dedicated to delivering to our clients innovative and effective solutions that help them preserve capital and reduce risk for the trading of a wide range of investment instruments," says Murray Pozmanter, managing director and general manager, clearing services at the DTCC. "We believe there are great benefits and cost savings in cross-margining and we are pleased to be working with ICE in exploring further ways to bring these types of capabilities to our mutual clients and the industry at large."
James and Anthony talk about the looming Sibos event in Toronto and take a look at some recent M&A activity and blockchain developments in the capital markets.Subscribe to Weekly Wrap emails