NYSE LIFFE WINS FSA APPROVAL FOR CENTRAL CLEARING COUNTERPARTY

Posted May 27, 2009

LONDON – NYSE Liffe, the international derivatives business of NYSE Euronext, has received approval in principle from the Financial Services Authority (FSA) to launch NYSE Liffe Clearing, its central clearing counterparty for its London derivatives market, LIFFE Administration and Management.

Scheduled to launch July 27 pending regulatory review, NYSE Liffe Clearing was established in October 2008 by LIFFE and LCH.Clearnet Ltd. Under the NYSE Liffe Clearing arrangements, LIFFE will continue to outsource the existing clearing guarantee arrangements and related risk functions to LCH.Clearnet, which will remain responsible for defaulting member positions and applying its rules and resources to resolve defaults, if they occur.

“The new clearing arrangements will enable us for the first time to forge a direct clearing relationship with our London market customers while continuing to build on our long-standing relationship with LCH.Clearnet,” says Garry Jones, Group Executive Vice President & Head of Global Derivatives, NYSE Liffe. “This change will involve minimal disruption for our customers, who will benefit from our new ability to invest in, and swiftly deliver, clearing services that meet their changing needs.”