NYPC names initial clearing members

Source: NYPC

New York Portfolio Clearing, LLC (NYPC) announced today that its board has approved the first of its clearing members:


* Advantage Futures LLC
* Barclays Capital Inc.
* GETCO, LLC
* Goldman Sachs & Co.
* MF Global Inc.
* Morgan Stanley & Co., Incorporated
* Newedge USA, LLC
* Ronin Capital, LLC
* Rosenthal Collins Group, LLC
* UBS Securities, LLC

Several other major firms are in the process of becoming clearing members, subject to NYPC board approval, including Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc.

"We are excited to announce the approval of these influential clearing members, who represent some of the industry's largest firms," said Walt Lukken, Chief Executive Officer of NYPC. "Their support is a critical first step in achieving broad market validation and adoption for our 'one-pot' margining model as we approach our operational launch on March 21st."

NYPC is the innovative derivatives clearinghouse that will deliver "one-pot" margining of interest futures positions cleared by NYPC with fixed income cash positions cleared by The Depository Trust & Clearing Corporation's Fixed Income Clearing Corporation (FICC).

Lukken added: "Today's announcement marks the latest in a series of recent milestones, including the Commodity Futures Trading Commission's (CFTC) approval of NYPC as a Designated Clearing Organization and the CFTC's approval of NYPC's cross-margining arrangement with FICC. We expect to announce additional clearing members in the coming days and weeks as the marketplace begins to recognize the full benefit of NYPC's capital efficiencies and value proposition."

NYPC will participate this week in the 36th Annual International Futures Industry Conference in Boca Raton, Fla. NYPC and NYSE Euronext will jointly host an InformationXchange at 3:30 pm on Wednesday, March 16, which will include a panel discussion moderated by John Lothian of the Lothian Newsletter and include Walt Lukken (Chief Executive Officer of NYPC), Murray Pozmanter (Managing Director, DTCC and Chairman of NYC and Chairman of NYPC), Tom Callahan (Chief Executive Officer, NYSE Liffe U.S. and NYPC board member), Bernie Dan (President of Sun Holdings, LLC and NYPC board member) and Jim McNulty (Chairman, NYSE Liffe U.S.).

NYPC is a joint venture of The Depository Trust and Clearing Corporation and NYSE Euronext created to deliver unique capital efficiencies to the market by netting and reducing risks between a clearing member's portfolio of cash bonds and derivatives. It will also provide important operational efficiencies to its clearing members, including the "locked-in" trade delivery process that allows expiring futures to be seamlessly submitted to FICC for physical delivery. In 2010, FICC cleared and settled transactions valued at average of about $4.6 trillion daily.

NYPC will initially clear Eurodollar and U.S. Treasury Futures for NYSE Liffe U.S. Its "open access" architecture will enable other derivatives exchanges and clearinghouses to link into the "one-pot" margining system, providing a viable alternative to the dominant vertical clearing model and enabling new entrants to compete in the U.S. futures market.

At launch, "one-pot" margining of cash and futures positions will only be available for the proprietary accounts of common members of NYPC and FICC.

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