NYPC Successfully Completes Its First Ever Physical Delivery

NEW YORK, July 7, 2011 /PRNewswire/ -- New York Portfolio Clearing, LLC (NYPC), the innovative new clearing platform for interest rate futures, announced today that it has successfully executed its first physical delivery of US Treasury futures. NYPC's "locked-in" trade delivery system seamlessly submitted $1.275 billion notional in expiring US Treasury futures from NYPC to The Depository Trust & Clearing Corporation's (DTCC) Fixed Income Clearing Corporation (FICC) for physical delivery. The member firms' activity was then automatically netted with all trades the member firms cleared with FICC on that day. NYPC's "locked-in" delivery process combined with its unprecedented "one-pot" margining across proprietary futures and cash portfolios provides market participants with significant capital and operational efficiencies across their portfolios.

"We are proud of the successful and orderly completion of our first series of physical deliveries for our US Treasury futures complex," said Walt Lukken, Chief Executive Officer of NYPC. "All current NYPC customers will benefit from the ease and efficiencies of our locked-in physical delivery processes. We look forward to expanding the universe of market participants who will benefit from the unique capital and operational advancements as we onboard new clearing members in the coming months."

Tom Wipf, NYPC Board Member and Global Head of Bank Resource Management for Morgan Stanley said, "NYPC's trade delivery process is a clear improvement in operational mechanics of US Treasury physical delivery that seamlessly integrates the futures and cash fixed income settlement systems. Market participants will substantially benefit from this transparent and efficient innovation."

NYPC is a joint venture of DTCC and NYSE Euronext (NYX) created to deliver unique capital efficiencies to the market by netting and reducing risks between a clearing member's portfolio of cash bonds and derivatives, combined with a streamlined delivery process allowing for the seamless netting of futures and cash positions. NYPC currently clears Eurodollar and US Treasury futures listed on NYSE Liffe US, the US futures exchange of NYSE Euronext.

For more information, please visit: www.nypclear.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 clears interest rate products and supports 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.

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 NYSE Euronext

NYSE Euronext (NYX) is a leading global operator of financial markets and provider of innovative trading technologies. The company's exchanges in Europe and the United States trade equities, futures, options, fixed-income and exchange-traded products. With approximately 8,000 listed issues (excluding European Structured Products), NYSE Euronext's equities markets—the New York Stock Exchange, NYSE Euronext, NYSE Amex, NYSE Alternext and NYSE Arca—represent one-third of the world's equities trading, the most liquidity of any global exchange group. NYSE Euronext also operates NYSE Liffe, one of the leading European derivatives businesses and the world's second-largest derivatives business by value of trading. The company offers comprehensive commercial technology, connectivity and market data products and services through NYSE Technologies. NYSE Euronext is in the S&P 500 index, and is the only exchange operator in the S&P 100 index and Fortune 500. For more information, please visit: http://www.nyx.com.

SOURCE NYPC

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