UPDATE 1-NYSE Euronext details its new US Treasury futures

Tue Apr 6, 2010 10:39am EDT

* Eurodollar; 2-, 5-, 10- and 30-year US Treasury futures

* NYSE Liffe U.S. exchange to launch Treas futures in Q3

NEW YORK, April 6 (Reuters) - Exchange operator NYSE Euronext (NYX.N) on Tuesday detailed the Treasury futures it will offer on its NYSE Liffe U.S. venue and confirmed it will launch the products in the third quarter in tandem with a joint venture with clearinghouse DTCC.

The New York Stock Exchange parent company will start with 2-year, 5-year, 10-year and 30-year U.S. Treasury futures, as well as Eurodollar futures. It expects to launch options on these futures in the fourth quarter.

NYSE Euronext added that it is in "advanced discussions with major market participants and regulators on a number of innovative new interest rate futures products, which are expected to be announced later in the year."

NYSE Liffe U.S. now trades some metals futures. The trans-Atlantic parent company is aggressively diversifying its business model from the traditional base in cash equities, and striking partnerships to do so.

One of its new ventures is NYPC, a joint venture with Depository Trust Clearing Corp (DTCC) that will clear Treasury futures in an arrangement meant to cut margins for customers that also trade the underlying securities.

NYSE Euronext said the six previously announced partners in NYSE Liffe U.S. -- who will share in its equity and include Morgan Stanley (MS.N) and Citadel Securities -- "now own a significant minority stake" in the venture. [ID:nN29105235] (Reporting by Jonathan Spicer; editing by John Wallace)

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