NYSE Euronext picked industry veterans Jim McNulty and Tom Callahan to head up its new futures exchange NYSE Liffe. Here the two outline their strategy and thinking to Jim Kharouf.
The newest US futures exchange, NYSE Liffe, which opened for
business on September 8, has a tough challenge ahead of it:
attacking CME Groups 98% market share.
To lead the business, NYSE Euronext has chosen Jim McNulty
as chairman and Tom Callahan as executive vice-president and
head of the exchange. McNulty is a former CEO of CME Group,
while Callahan joined NYSE Liffe in June from Merrill
Their job is to build a multi-asset class exchange, starting
from the small base of six gold and silver futures and options
that NYSE Liffe took over from the Chicago Board of Trade.
But their ambitions go beyond winning market share. McNulty
and Callahan want to shake up the market by breaking down
barriers and making trading more efficient. And they believe
there is huge scope to grow the whole market by creating new
They talked to Jim Kharouf at the NYSE Arca headquarters on
Wacker Drive in Chicago, in a boardroom with a view of the CME
Group building across the street.
McNulty and Callahan explained why they believe NYSE
Euronext is well placed for CDS clearing, what NYSE Liffe is
doing to reduce latency and how they think volume in the
futures market will evolve over the next five years.
Since this interview was conducted, NYSE Euronext has
revealed that it plans to sell up to 49% of NYSE Liffe to
strategic partners to help it grow.
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