Initially, NYPC will clear interest rate derivatives traded on NYSE Liffe US, with the ability to add other exchanges in the future. It will use NYSE Euronext's clearing technology - its trade registration system and clearing processing system - which is used by NYSE Liffe in London and Ice Clear Europe. A single default fund covering cash transactions and derivatives will be established. As an additional contribution to "reinforce the safety and soundness" of the fund, NYSE Euronext will put in $50 million.
The new venture will be headed on an interim basis by Dennis Dutterer, former chief executive of Chicago-based firm The Clearing Corporation, where he spent 20 years. He has also served as interim president and chief executive at the Chicago Board of Trade.