Neal Wolkoff, chief executive of ELX Futures, is determined to fight for a change in what he believes is the “uncompetitive” behaviour of New York Portfolio Clearing, the soon-to-be-launched bond and derivatives clearing house – and of CME Group.
“We do not oppose the creation of the NYPC but we contest the exclusive arrangement between NYSE Liffe and the Depository Trust & Clearing Corporation,” Wolkoff told Futures and Options Intelligence this week.
NYPC will be a new clearing house, set up by NYSE Liffe and the DTCC’s Fixed Income Clearing Corporation, in which market participants can clear bonds and derivatives, enabling them to benefit from margining efficiencies.
But for the moment only trades on NYSE Liffe US can be cleared there – and FICC will not engage in similar cross-margining arrangements with other clearing houses.
ELX Futures, a start-up exchange that now offers US Treasury...