New York Portfolio Clearing, LLC (NYPC) has approved three additional clearing members: ABN Amro Clearing Chicago, LLC, Citigroup Global Markets Inc. and Merrill Lynch.
The addition of the new clearing firms brings the number of NYPCs member firms to 13. Several additional firms are in the process of becoming clearing members, subject to NYPC board approval.
We are excited to announce the expansion of our clearing member community with the approval of these influential firms, says Walt Lukken, CEO of NYPC. Their participation represents further market validation of the importance of the one-pot capital efficiencies that NYPC offers, particularly in todays market and regulatory environment.
As a first-of-its-kind joint venture of the Depository Trust & Clearing Corporation (DTCC) and NYSE Euronext (NYX), NYPC was created to deliver unique capital efficiencies to the market by evaluating and margining a clearing members risk on a portfolio basis across related cash fixed-income and derivative positions. After nearly two years of regulatory review, NYPC began clearing products on March 21 and has already cleared more than eight million contracts in less than five months of operations. To date NYPC has more than 800,000 contracts in total open interest, garnering 7% of the open interest market share for Eurodollar futures.
Todays announcement follows the successful completion of our first physical delivery of contractstotaling $1.275 billion notionalthrough our locked in delivery mechanism last month, Lukken says. With our new clearing members on board, we look forward to the next stage of development as a world-class provider of clearing services to global market participants.
(CM)