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  • New York Portfolio Clearing LLC (NYPC), the clearing platform for interest rate futures, was awarded 2011’s “Best Innovation by a Clearing House, North America,” by Futures and Options World (FOW).

    “This award is further testament to the tremendously positive reception NYPC has experienced since its launch in 2011,” said Walter Lukken, CEO of NYPC. “We are honored to be the 2011 recipient, and look forward to building on the innovative ‘one-pot’ model that has proven its ability to generate capital and operational efficiencies for our clients and the broader market.”

    A 50/50 joint venture of DTCC and the NYSE Euronext, NYPC’s market innovation is the one-pot margining of interest rate futures positions cleared by NYPC with fixed income cash positions cleared by the DTCC’s Fixed Income Clearing Corporation. NYPC, which opened for business March 21, 2011, is the first and only derivatives clearinghouse to deliver unique capital efficiencies by netting and reducing risks between a clearing member’s portfolio of cash bonds and derivatives. One-pot margining and netting can greatly reduce the amount of capital that firms have to provide to the clearing house, without the clearing house or the industry facing any increased risks. It also increases transparency of exposures for regulators.

    Murray Pozmanter, DTCC managing director and general manager, Clearing Services, and NYPC Board chairman, said, “This is another accomplishment for NYPC and further confirmation of the market’s need for innovative solutions and greater choice. At a time when capital and risk are front and center, we are proud to offer solutions that drive market evolution and reinforce the integrity of the financial markets.”

    Broad consensus

    FOW, a leading industry publication, selected a global panel of senior market experts to serve as judges and ensure broad industry representation. The panel sought to identify innovations with the potential to strengthen the derivatives market. The judges considered NYPC’s one-pot margining a crucial “leap forward in the move towards crossmargining,” a process that will become increasingly important.

    “After years of hard work, careful planning and deliberate execution, this acknowledgment serves as industry recognition of our unique model, the partnership that made it possible and the tangible benefits it offers the marketplace in terms of innovation, capital efficiency and effective competition,” said Tom Callahan, CEO, NYSE Liffe U.S. “I sincerely thank my colleagues, partners and customers for their commitment to this groundbreaking project.”

    Volume growth

    Since it began operations in March, NYPC has cleared more than 13 million contracts and has over 800,000 contracts in total open interest, equaling nearly 9% of the open interest market share for Eurodollar futures.

    NYPC is registered as a U.S. Derivatives Clearing Organization with the Commodity Futures Trading Commission. For more information, visit: @