ELX Futures has written to the Securities and Exchange Commission to protest against some of the proposed rules governing New York Portfolio Clearing. The exchange, which is trying to break into the US interest rate futures market in competition with CME Group, is now worried about competition from NYSE Liffe US.
NYPC is a joint venture between NYSE Liffe US, which also wants to offer US interest rate futures, and the Fixed Income Clearing Corporation. It is a new clearing house that will enable cross-margining between interest rate derivatives traded on NYSE Liffe US and underlying US Treasury bonds cleared through FICC, part of the Depository Trust and Clearing Corporation. After an initial exclusivity period, other exchanges will be able to join NYPC and to clear their contracts through it.
The comment period started on November 23 and ended today (December 21). Comments relate to a...