New York Portfolio Clearing, LLC

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New York Portfolio Clearing
NewYorkPortfolioClearing.jpg
Founded 2009
Headquarters New York
Key People Lynn Martin, CEO
Products Provides clearing services for fixed income derivatives
Website www.nypclear.com

New York Portfolio Clearing (NYPC) is a fixed income derivatives clearinghouse created to provide a single view of risk across asset classes. It was created as a joint venture between NYSE Euronext and The Depository Trust Clearing Corp..[1][2]

NYPC migrated its clearing operations to ICE Clear Europe and the CFTC vacated NYPC's registration as a Derivatives Clearing Organization in June 2014.[3]

History

On Apr. 13, 2010, NYPC announced it had appointed Walter Lukken as chief executive officer, effective May 1, 2010.[4] Lukken was replaced by Anthony Brokerick. Lukken left the firm in February of 2012 to become president of the Futures Industry Association.[5]

NYPC received its clearing license from the CFTC on Feb. 1, 2011.[6][7]

On March 1, 2011, the Depository Trust & Clearing Corporation, a partner in NYPC, received approval from the U.S. Securities and Exchange Commission for "one-pot" cross margining between fixed income positions cleared by DTCC's Fixed Income Clearing Corporation (FICC) and interest rate futures clearing by New York Portfolio Clearing.[8]

NYPC began clearing products on March 21, 2011 with 13 member firms.[9]

NYPC was awarded “Best Innovation By A Clearing House, North America,” by Futures and Options World (FOW) for 2011.[10]

On Apr. 2, 2012, NYPC named Alexander Broderick as chief executive officer. He replaced Walt Lukken in the position.[11]

After Intercontinental Exchange Group (ICE) bought NYSE Euronext in 2013, it announced it would wind down NYPC's operations and transfer the clearing of interest rate futures listed on NYSE Liffe U.S. to ICE Clear Europe. ICE said it would transfer open interest from NYPC to ICE Clear Europe by the third quarter of 2014, subject to regulatory approval.[12] Lynn Martin, the CEO of NYSE Liffe U.S., will serve as the CEO of NYPC through the transition and wind down period.

Products and Services

In early April of 2010, NYSE Liffe U.S. announced it would offer a full suite of interest rate futures to coincide with the anticipated regulatory approval and launch of New York Portfolio Clearing.

NYSE Liffe U.S. began trading Eurodollar futures on March 21 of 2011 and launched 2-year, 5-year and 10-year U.S. Treasury futures along with U.S. Bond and Ultra Bond futures products on March 28. These products are cleared through NYPC, which had received all the required approvals from the Commodity Futures Trading Commission (CFTC) and the Securities Exchange Commission (SEC). Options on these futures were expected to follow.[13]The exchange launched Eurodollar futures in March 21 of 2011 and planned to list 2-year, 5-year, 10-year and 30-year U.S. Treasury futures on March 28, 2011. Options on these futures were expected to be launched in fourth-quarter 2011.[14]

It had been announced on March 1, 2011 that the SEC had granted a reciprocal approval to the Fixed Income Clearing Corporation (FICC) allowing for the “one-pot” cross-margining arrangement with NYPC. The regulatory approvals would allow NYPC and FICC to proceed with their plan to offer “one-pot” margining for fixed income cash and futures positions, with the aim of reducing risk and delivering capital efficiencies to the markets.[15]

[16]

References

  1. NYSE Euronext and DTCC Finalize Joint Venture Agreement to Create New York Portfolio Clearing. DTCC.
  2. New York Portfolio Clearing Names Ira Krulik as COO, Kevin Murray as Director of Business Operations. NYPC.
  3. CFTC Vacates New York Portfolio Clearing, LLC’s Registration as a Derivatives Clearing Organization. CFTC.
  4. New York Portfolio Clearing Names Walter Lukken CEO. NYSE Euronext.
  5. NYPC MEDIA STATEMENT ON WALTER LUKKEN. New York Portfolio Clearing.
  6. CFTC Grants License to New York Portfolio Clearing. .
  7. New York Portfolio Clearing Receives DCO Registration from CFTC. Business Wire.
  8. DTCC Receives SEC Approval for Transformational One-Pot Margining. DTCC.
  9. NYPC Announces Initial Clearing Members for March 21st Launch. NYPC.
  10. NYPC Awarded “Best Innovation by a Clearinghouse, North America” by Futures and Options World, 2011. NYPC.
  11. NYPC Names Sandy Broderick As New CEO. FOW Intelligence.
  12. Intercontinental Exchange Group and DTCC Announce Plans for Interest Rate Futures Listed on NYSE Liffe U.S.. NYSE, New York Stock Exchange.
  13. NYSE Liffe U.S. to Offer Full Suite of Interest Rate Futures. NYSE Liffe.
  14. NYSE To Launch Interest-Rate Futures in Third Quarter. WSJ.com.
  15. NYPC Receives Final Regulatory Approval. Business Wire.
  16. Value Proposition. New York Portfolio Clearing.