NYSE Euronext has signed an agreement with several global banks and liquidity providers — Citadel Securities, Getco, Goldman Sachs, Morgan Stanley and UBS — to sell a significant equity interest in NYSE Liffe US, its US futures exchange.
NYSE Euronext will remain the largest shareholder in the entity and will continue to manage its day-to-day operations.
NYSE Liffe US will operate under the supervision of a separate board of directors, chaired by Jim McNulty and chief executive officer Thomas F. Callahan.
The transaction is expected to close shortly, subject to regulatory review.
"This partnership further demonstrates the commitment of NYSE Euronext to create exceptional value through innovation both for and with our customers," says Duncan L. Niederauer, chief executive officer, NYSE Euronext. "Today’s announcement marks an important step in achieving our goal of establishing NYSE Liffe US as a highly competitive, global multi-asset exchange."
Callahan adds: “NYSE Liffe US will effectively compete in the US futures market by delivering innovative products and services, and by leveraging the market leading technology of NYSE Euronext. I am thrilled that this group of distinguished market leaders shares our vision for innovation and efficiency, and we look forward to working with them to accelerate the growth of NYSE Liffe US.”
NYSE Liffe US launched trading in September 2008 as a fully electronic, liquid market for 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. The exchange expanded into equity index futures with the launch of futures on MSCI Emerging Markets, MSCI EAFE, and MSCI USA indices in September 2009.
NYSE Liffe US has plans to further expand into futures on other asset classes, including US interest rate products.
It uses the Liffe Connect trading platform designed and maintained by NYSE Technologies and used by NYSE Liffe in Europe.
