NYSE Euronext and the Depositary Trust & Clearing Corp. said they will launch a joint venture to create a new clearing house for U.S. fixed income derivatives.
The clearinghouse, to be called New York Portfolio Clearing, will combine capabilities of NYSE Euronext’s U.S. futures exchange, NYSE Liffe U.S., and DTCC’s Fixed Income Clearing Corp.
NYSE Euronext plans to commit a $50 million financial guarantee to reinforce the soundness of the NYPC default fund.
“We will help to lower the traditional barriers between the cash and derivatives markets” through the combination, NYSE’s chief executive officer Duncan Niederauer said.
The pairing will provide “greater transparency of investment positions between cash and derivatives,” said DTCC’s chief executive Donald Donahue.