NYSE Euronext Liffe is looking overseas for growth, senior
executives emphasised at a dinner they hosted in Interlaken
during the Swiss Futures and Options Association’s
annual conference in September.
"For us, the geographical growth of our business is the most
important thing, especially in Asia and the US," said Garry
Jones, head of global derivatives at the exchange.
Although NYSE Euronext’s centres of gravity are
in New York and Paris, where it owns the main stock exchanges,
the most important hub of its derivatives business is in
London, where it acquired Liffe in January 2002.
Increasingly, the group is broadening its horizons, however,
with the launch of NYSE Liffe US in September 2008, offering a
suite of silver and gold futures and options acquired from CME
Trading has begun in NYSE Liffe US’s first
equity derivatives: MSCI USA Mini Index Futures, MSCI Emerging
Markets Mini Index Futures and MSCI Europe, Australasia, Far
East Mini Index Futures.
These are the first of about 40 contracts planned as a
result of a licensing deal struck in February with MSCI Barra,
the index provider.
But the company is looking beyond the US as well. At the
Swiss dinner, Fraser Cowie, executive director of global
business development, said: "We see opportunities in Asia, the
Middle East and in South America, in that order."
He said the exchange was looking for "anything from
strategic investments [ie small stakeholdings] to technology,
product development, cross-listing ideas and joint venture
NYSE Euronext has a 5% stake in Multi Commodity Exchange of
India and a relationship with the Zhengzhou Commodity Exchange
in China, for example.
Turning to the wider dynamics of the derivatives market,
Jones said: "This year started out difficult, but has gained
momentum in the last few months."
Some of the leverage in the market that has been lost, he
said, "will never come back because of the market
Jones called the idea of the big move from over-the-counter
to exchange-based trading "a myth". "On the clearing side
it’s starting to happen, but only on the terms of
the OTC market," he said.
Speaking of why centrally clearing CDS presented more of a
challenge than clearing other asset classes, he said: "CDS has
always been OTC... It’s a much bigger leap to put
it on exchange."
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