NYSE Euronext (NYX) today announced that NYSE Liffe, its international derivatives business, has received approval in principle from the Financial Services Authority (FSA) to launch NYSE Liffe Clearing, its central clearing counterparty for its London derivatives market, LIFFE Administration and Management. NYSE Liffe Clearing is due to begin operating on 27 July 2009, subject to a period of review by members of the proposed documentation (i.e. amendments to Rules and Clearing Arrangements) which incorporates the new arrangements and the finalisation of tax relief with HM Treasury.
In October 2008, LIFFE and LCH.Clearnet Ltd. entered into binding agreements to establish NYSE Liffe Clearing, enabling LIFFE to become a self-clearing Recognised Investment Exchange, act as central clearing counterparty for the London derivatives market and manage its own London clearing operations directly. Under the NYSE Liffe Clearing arrangements, LIFFE will continue to outsource the existing clearing guarantee arrangements and related risk functions to LCH.Clearnet, which will remain responsible for defaulting member positions and applying its rules and resources to resolve defaults, if they occur.
Garry Jones, group executive vice president & head of global derivatives, said “We are very pleased to have received approval from the FSA for NYSE Liffe Clearing. The new clearing arrangements will enable us for the first time to forge a direct clearing relationship with our London market customers while continuing to build on our long-standing relationship with LCH.Clearnet. This change will involve minimal disruption for our customers, who will benefit from our new ability to invest in, and swiftly deliver, clearing services that meet their changing needs.”
