NYSE Euronext and the Depository Trust & Clearing Corporation (DTCC) are partnering to create a clearinghouse for U.S. fixed income securities and derivatives.

The joint venture, which aims to be operational in the second quarter of 2010, will be called New York Portfolio Clearing (NYPC). It will combine NYSE Euronext's Liffe U.S. futures exchange with the DTCC's Fixed Income Clearing Corporation (FICC).

The venture will start with clearing in interest rate products traded on NYSE Liffe U.S. and other exchanges will be added in the future. NYPC will be based on NYSE Euronext's TRS/CPS clearing technology and DTCC will provide FICC's risk management, settlement, banking and reference data systems.

In a statement, Duncan Niederauer, CEO of NYSE Euronext, said, "Recent market dislocation has underscored the need to improve market efficiencies and provide more thorough and timely information about the positions of participants across asset classes. In uniting NYSE Euronext's proven strength and expertise in execution with DTCC's market-leading clearing capabilities, we will help to lower the traditional barriers between the cash and derivatives markets. NYPC will provide a more comprehensive view of participants' overall risk exposure and increases capital efficiency through a cross-asset class risk management program."

Donald Donahue, CEO of DTCC, added, "By providing greater transparency of investment positions between cash and derivatives, NYPC will bring a superior match between traders' total portfolio risk and the underlying margin requirements. Additionally, regulators will gain the ability to monitor market participants' total exposure across multiple interest rate asset classes in real-time."