SEC approves NYSE's plan for "one-pot" clearing

About DTCC

DTCC, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC's depository provides custody and asset servicing for more than 3.6 million securities issues from the United States and 121 other countries and territories, valued at US$36.5 trillion. In 2010, DTCC settled nearly US$1.66 quadrillion in securities transactions. DTCC has operating facilities and data centers in multiple locations in the United States and overseas. For more information, please visit www.dtcc.com.

About NYPC

New York Portfolio Clearing, LLC (NYPC) is registered as a U.S. Derivatives Clearing Organization with the Commodity Futures Trading Commission. NYPC will clear interest rate products and will support the cross-margining of fixed income cash products from Depository Trust & Clearing Corporation’s Fixed Income Clearing Corporation with their related, offsetting derivatives trades in a “single pot”. For more information, please visit: www.nypclear.com.

New York Portfolio Clearing (NYPC)

“One-pot” margining is a key element behind the launch of New York Portfolio Clearing (NYPC), a joint venture of DTCC and NYSE Euronext (NYX). NYPC will take advantage of the correlation between cash market trades cleared and settled at FICC and hedges made with offsetting futures markets trades cleared at NYPC.

NYPC will also provide important operational efficiencies to its members, including the “locked-in” trade delivery process that allows expiring futures to be seamlessly submitted to FICC for physical delivery.

NYPC will initially clear Eurodollar and U.S. Treasury Futures for NYSE Liffe U.S. Its “open access” architecture will enable other derivatives exchanges and clearinghouses to link into the “one-pot” margining system.

At launch, “one-pot” margining of cash and futures positions will only be available for the proprietary accounts of common members of NYPC and FICC.

To see a schematic drawing that helps explain the single-pot margining concept, use this URL: http:/www.dtcc.com/downloads/products/fi/Value_Propositionschematic_2.pdf

About DTCC

DTCC, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC's depository provides custody and asset servicing for more than 3.6 million securities issues from the United States and 121 other countries and territories, valued at US$36.5 trillion. In 2010, DTCC settled nearly US$1.66 quadrillion in securities transactions. DTCC has operating facilities and data centers in multiple locations in the United States and overseas. For more information, please visit www.dtcc.com.

About NYPC

New York Portfolio Clearing, LLC (NYPC) is registered as a U.S. Derivatives Clearing Organization with the Commodity Futures Trading Commission. NYPC will clear interest rate products and will support the cross-margining of fixed income cash products from Depository Trust & Clearing Corporation’s Fixed Income Clearing Corporation with their related, offsetting derivatives trades in a “single pot”. For more information, please visit: www.nypclear.com.

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