NYSE Euronext and the Depository Trust & Clearing Corp. said Thursday they would create a fixed-income derivatives clearing house in an effort to provide a single view of risk across asset classes.
The 50-50 joint venture will be called the New York Portfolio Clearing. It is expected to be operational in the second quarter of 2010, once it gets necessary regulatory approvals.
NYSE CEO Duncan Niederauer said it is designed to help lower the "traditional barriers between the cash and derivatives markets." NYSE plans to commit a $50 million financial guarantee to ensure the fund.
"Recent market dislocation has underscored the need to improve market efficiencies and provide more thorough and timely information about the positions of participants across asset classes," Niederauer said in a statement.
The chief of the joint venture will be Dennis Dutterer, who has previously been at the Clearing Corp., the Chicago Board of Trade, the Commodities Futures Trading Commission and in private legal practice.
Initially, the new venture will clear interest-rate products traded on the NYSE Liffe U.S. Other exchanges may be added later, according to a statement.
NYSE shares closed Wednesday at $27.08.