Press Release
-Enhancing Market Quality, Facilitating Efficient Block and Basis Trading-
New York, May 3, 2011 – In an effort to provide greater choice and liquidity for customers wishing to execute transactions in sizes that are above the published Exchange block trade minimum thresholds in Interest Rate Futures, NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext (NYX), today announced the publication of its wholesale trader list. This list contains the names and contact information for leading market participants who have expressed an interest in providing liquidity for wholesale trades, including block and basis trades, in interest rate futures contracts trading on NYSE Liffe U.S.
"NYSE Liffe U.S. is proud to announce its wholesale trader list for interest rate futures. These world-class firms stand ready to provide liquidity to customers wishing to execute block trades in our recently launched Eurodollar and U.S. Treasury futures as well as to price cash vs. futures basis trades,” said Tom Callahan, CEO, NYSE Liffe U.S. “This service will provide an efficient way for customers to establish positions on NYSE Liffe U.S. cleared at NYPC without the prohibitive fees and operational complexities presented by other exchanges.”
All cleared transactions resulting from block or basis trades will also receive the capital and operational efficiencies generated by the portfolio margining capabilities and streamlined delivery protocols of New York Portfolio Clearing (NYPC). NYSE Liffe U.S. does not impose a surcharge for block trades and offers clear and simple processing for wholesale transactions.
This list will be updated periodically as NYSE Liffe U.S. adds qualifying firms. Block trading (Rule 423) and basis trading (Rule 422) procedures, rules and the wholesale trader list can be found at www.nyseliffeus.com.
NYSE Liffe U.S. is a global, multi-asset class futures exchange trading a diverse range of products, including the successful Eurodollar and U.S. Treasury interest rate products that have traded nearly 2 million contracts with current end of day Open Interest of over 100,000 contracts since launching in March. These products also utilize the capital and operational efficiencies of NYPC, the new clearinghouse jointly owned by The Depository Trust and Clearing Corporation and NYSE Euronext. Additionally, NYSE Liffe U.S. will become the sole U.S. exchange for MSCI-based index futures products on June 17, 2011. On or before this date, futures on two of MSCI's most widely tracked global benchmarks, MSCI Emerging Markets and MSCI EAFE, will cease trading on CME and migrate to NYSE Liffe U.S.
About NYSE Liffe U.S.
Launched in September 2008, NYSE Liffe U.S. is the innovative U.S. futures exchange of NYSE Euronext. In March 2010, the exchange sold a substantial minority ownership stake to six leading market participants, Citadel Securities, DRW Ventures LLC (an affiliate of DRW Trading Group), GETCO, Goldman Sachs, Morgan Stanley and UBS. NYSE Liffe U.S. utilizes the proven LIFFE CONNECT® trading platform designed and maintained by NYSE Technologies that matched nearly 4.7 million contracts per day in 2010 on the NYSE Liffe European markets. Offering a range of global connectivity options, NYSE Liffe U.S. enables its members to efficiently transact on the platform in a highly cost-effective manner while also utilizing other NYSE Euronext exchanges with unique pricing incentives and simplified access. For more information on NYSE Liffe U.S., please visit: www.nyse.com/nyseliffeus
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning NYSE Euronext’s plans, objectives, expectations and intentions and other statements that are not historical or current facts. Forward-looking statements are based on NYSE Euronext’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause NYSE Euronext’s results to differ materially from current expectations include, but are not limited to: NYSE Euronext’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk and U.S. and global competition, and other factors detailed in NYSE Euronext’s reference document for 2009 ("document de référence") filed with the French Autorité des Marchés Financiers (Filed on April 22, 2010 under No. D.10-0304), 2009 Annual Report on Form 10-K and other periodic reports filed with the U.S. Securities and Exchange Commission or the French Autorité des Marchés Financiers. In addition, these statements are based on a number of assumptions that are subject to change. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by NYSE Euronext that the projections will prove to be correct. This press release speaks only as of this date. NYSE Euronext disclaims any duty to update the information herein.
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Selasa, 03 Mei 2011
Jumat, 29 Oktober 2010
Five Minutes Interview With ELX CEO Neal Wolkoff
This article is also posted on the main page of MarketsWiki.
Neal Wolkoff is the CEO of ELX Futures, L.P. He was named to the position on Oct. 6, 2008. Previously, he had been CEO of the American Stock Exchange prior to its acquisition by NYSE. At issue as of late for ELX Futures is that an exchange for futures (EFF) block-trade mechanism offered by ELX Futures allows traders to move their Treasury futures positions from one exchange to the other. CME Group has claimed ELX's EFF violates CME's rules. Both exchanges have petitioned the Commodity Futures Trading Commission (CFTC) to decide the issue. Wolkoff talked with MarketsWiki Senior Editor/ Producer Christine Nielsen.
Q: So I'm trying to get a handle on where things stand with these petitions to the CFTC regarding EFFs. Could you first give me your impressions on that?
A: The submission of information is over, although the CFTC could ask for more information; but I can't speak for the agency. We’ve been pleased that the Commission has been responsive on the EFF issue and has publicly stated that EFFs do not violate any laws or regulations.
Q: Have you had a chance to read the interview we recently did with Foley & Lardner's Scott Early? What about this idea of a natural barrier disadvantage?
A: I would just preface this by saying that he (Scott Early) has been a well-respected regulated futures industry attorney for a number of years. By getting into economic theory and intellectual property, he steered away from his area of expertise. Plus, based on his statement that there is an intellectual property right in a product, the reality is that this does not exist. The reality is that there's nothing to patent or to copyright. We're not doing anything that a normal competitor wouldn't do. The CME is essentially a monopoly. There's nothing about ELX using this EFF mechanism that is illegal and this has never been an argument about intellectual property. The role of the exchanges includes promoting the best interest of the investing public. We're confident that we've been on the right side of this issue.
Q: What type of feedback have you gotten from market participants?
A: People are generally interested, and market participants are interested and have privately told us so, but there’s a conscious resistance to publicly come forward because of the CME’s dominance in the industry.
Q: What does ELX hope to achieve overall - in terms of market share of Treasury products?
A: We've been live now for a year. We've added customers, brought on a successful Eurodollar futures contract. We want to grow to become a company with greater product reach, and increase our market share. We're doing very well and we're in a very good position. We are growing, adding users and I believe we have proven ourselves as a real competitor to the CME. It would be a good thing for market participants and the futures industry if we get the EFF mechanism approved.
Q: How would you see this playing out if the CFTC gives its nod on the use of the EFF mechanism?
A: A number of market participants would use it. What the EFF allows is for market participants to access the best available price across markets without paying a double margin or facing delivery obligations to deliver on one market and take delivery on another.
Q: What is next for the exchange?.
A: [Without giving too much away] we have plans for enhancing liquidity; we plan to add new products, continue to diversify and increase our volume and open interest. Our Eurodollar futures contract was launched four months ago and has been a big success so we hope to keep up the momentum.
Neal Wolkoff is the CEO of ELX Futures, L.P. He was named to the position on Oct. 6, 2008. Previously, he had been CEO of the American Stock Exchange prior to its acquisition by NYSE. At issue as of late for ELX Futures is that an exchange for futures (EFF) block-trade mechanism offered by ELX Futures allows traders to move their Treasury futures positions from one exchange to the other. CME Group has claimed ELX's EFF violates CME's rules. Both exchanges have petitioned the Commodity Futures Trading Commission (CFTC) to decide the issue. Wolkoff talked with MarketsWiki Senior Editor/ Producer Christine Nielsen.
Q: So I'm trying to get a handle on where things stand with these petitions to the CFTC regarding EFFs. Could you first give me your impressions on that?
A: The submission of information is over, although the CFTC could ask for more information; but I can't speak for the agency. We’ve been pleased that the Commission has been responsive on the EFF issue and has publicly stated that EFFs do not violate any laws or regulations.
Q: Have you had a chance to read the interview we recently did with Foley & Lardner's Scott Early? What about this idea of a natural barrier disadvantage?
A: I would just preface this by saying that he (Scott Early) has been a well-respected regulated futures industry attorney for a number of years. By getting into economic theory and intellectual property, he steered away from his area of expertise. Plus, based on his statement that there is an intellectual property right in a product, the reality is that this does not exist. The reality is that there's nothing to patent or to copyright. We're not doing anything that a normal competitor wouldn't do. The CME is essentially a monopoly. There's nothing about ELX using this EFF mechanism that is illegal and this has never been an argument about intellectual property. The role of the exchanges includes promoting the best interest of the investing public. We're confident that we've been on the right side of this issue.
Q: What type of feedback have you gotten from market participants?
A: People are generally interested, and market participants are interested and have privately told us so, but there’s a conscious resistance to publicly come forward because of the CME’s dominance in the industry.
Q: What does ELX hope to achieve overall - in terms of market share of Treasury products?
A: We've been live now for a year. We've added customers, brought on a successful Eurodollar futures contract. We want to grow to become a company with greater product reach, and increase our market share. We're doing very well and we're in a very good position. We are growing, adding users and I believe we have proven ourselves as a real competitor to the CME. It would be a good thing for market participants and the futures industry if we get the EFF mechanism approved.
Q: How would you see this playing out if the CFTC gives its nod on the use of the EFF mechanism?
A: A number of market participants would use it. What the EFF allows is for market participants to access the best available price across markets without paying a double margin or facing delivery obligations to deliver on one market and take delivery on another.
Q: What is next for the exchange?.
A: [Without giving too much away] we have plans for enhancing liquidity; we plan to add new products, continue to diversify and increase our volume and open interest. Our Eurodollar futures contract was launched four months ago and has been a big success so we hope to keep up the momentum.
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