Nyse Liffe US completes stake sale

Source: Nyse Euronext

NYSE Euronext (NYX) today announced that it sold a significant minority ownership stake in its U.S. futures exchange, NYSE Liffe U.S., to six leading firms and liquidity providers: 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," said 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," said 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," said Patrik Edsparr, Global CEO of Citadel Securities.

Don Wilson, Founder and CEO of DRW Trading Group added, "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," said Dave Babulak, Managing Director of GETCO.

Reinhardt Olsen, North American Head of Exchange Traded Derivatives of UBS said, "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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