The US Commodity and Futures Trading Commission (CFTC) has approved an application by NYSE Liffe, the US futures trading platform of exchange group NYSE Euronext, to become a designated contract market.
NYSE Euronext plans to launch the new futures exchange on the evening of 7 September (a Sunday) for trade date 8 September with the transition of 100 oz. gold futures, 5,000 oz. silver futures, options on gold and silver futures, and mini-sized 33.2 oz. gold and 1,000 oz. silver futures from CBOT, the Chicago-based futures exchange bought last year by rival exchange group CME, to NYSE Liffe.
NYSE Euronext purchased the CBOT’s precious metals business earlier this year from the CME Group.
“We are committed to growing our presence in derivatives markets globally,” said Duncan L. Niederauer, NYSE Euronext’s CEO. “The US futures market holds great promise for NYSE Euronext, and we hope our entry will foster greater competition, innovation and efficiency for the benefit of all market participants.”
NYSE Liffe said its transition plan for precious metals will minimise the level of change required of market participants.
The new futures exchange will continue to deploy the LIFFE CONNECT trading platform previously used by CBOT. CME will provide clearing services for precious metals through the first quarter of 2009.
Other operational functions and market surveillance activities will be outsourced to Liffe and the National Futures Association (NFA).