Joint clearing venture for NYSE Euronext and DTCC

NYSE Euronext and the Depository Trust & Clearing Corporation (DTCC) will join forces to clear US fixed-income derivatives.

The new joint venture, a clearing house called New York Portfolio Clearing (NYPC), is expected to begin operations in the second quarter of 2010, subject to regulatory approval. NYPC is awaiting recognition as a registered derivatives clearing organisation from the US Commodity Futures Trading Commission, as well as consent from other regulatory bodies.

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.

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