NYSE Euronext (NYX) launched its futures exchange, NYSE Liffe LLC, and precious metals trading began in early September. Contracts included 100 oz. gold futures, 5,000 oz. silver futures, options on gold and silver futures and mini-sized 33.2 oz. gold and 1,000 oz. silver futures.
NYSE Euronext acquired the former CBOT metals complex in March from the CME Group, which was compelled to sell it off because of a noncompete clause in an agreement to host electronic trading of Nymex and Comex futures and options contracts on Globex, its electronic trading platform. The sale to NYSE Euronext was also prompted by antitrust concerns during the lead up to the CME Group’s acquisition of Nymex and its Comex division. CME Group acquired the CBOT, including the metals complex, in October 2006. The market featured electronic and side-by-side trading and quickly siphoned off half of the gold futures trading volume from Comex.
“We are committed to growing our presence in derivatives markets globally,” said Duncan L. Niederauer, CEO of NYSE Euronext in a press statement. “The U.S. futures market holds great promise for NYSE Euronext and we hope our entry will foster greater competition, innovation and efficiency.” Electronic trade will be hosted on NYSE Liffe’s LIFFE CONNECT trading platform, the same platform utilized by eCBOT. CME will provide clearing services through the first quarter of 2009.
