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Tom Callahan Bailey McCann, Opalesque, New York:
NYSE Liffe U.S is launching futures based on the Depository Trust and Clearing Corporation’s (DTCC) proprietary DTCC GCF Repo Index. Designed to track the $400bn GCF Repo® market, futures on DTCC GCF Repo Index are licensed to trade exclusively on NYSE Liffe U.S. and will clear at NYPC. Calculated using actual, fully-collateralized transactions in the underlying cash Treasury, Agency and Agency Mortgage-Backed markets, the DTCC GCF Repo Index™ follows the average interest rate paid each day for the most actively traded U.S. repo market .
The partnership between NYSE Liffe and DTCC was formed in 2009 to create a new clearinghouse that was launched in 2011. NYSE Liffe competes with CME Group in the futures market, and has gained 10% market share during its first year in business. "Our clearinghouse is a real innovator," said Tom Callahan, CEO, NYSE Liffe in an interview with Opalesque. "We are able to look at a broader universe of collateral. DTCC clears about $4bn dollars a day in the fixed income universe. That gives us a pretty large universe to think about launching new contracts on."
Futures on the index will be listed with one-month maturities and go out to two years. The contracts grew out of market demand for credible benchmarks. Historically, benchmarks have been set according to the London Interbank Offered Rate (libor), the libor rate is essentially the average of a daily dealers poll of interbank...................... To view our full article Click here
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