NQLX was the first new exchange approved by the Commodities Future Trading Commission under the new regulatory structure designed for trading of single-stock futures.
OCC, the largest clearinghouse in the world dealing in equity derivatives and the first to receive a "AAA" credit rating from Standard & Poors, was the logical choice for the NQLX clearinghouse. Under the terms of the agreement, OCC will provide processing, settlement and guarantee services for NQLX contracts. It will also optimize margin offsets between futures and options through its TIMSÔ portfolio risk management system. This reduces collateral requirements, allowing for more efficient use of a firm's capital.
Bob Fitzsimmons, NQLX interim CEO and President, said, "We are very pleased to have OCC on board as part of our offering to the marketplace. NQLX desires to bring the fullest possible array of stock futures and related products to firms, institutions and individuals. OCC allows us to provide such products and will bring the highest quality of clearing services to our members and their customers. We know that most of our member firms will already be OCC clearing members and have had a long-term relationship with this clearinghouse."
Wayne Luthringshausen, OCC Chairman and CEO, said, "Our agreement with NQLX marks our initial entry into the security futures marketplace. We're confident that our expertise in clearing derivatives, our open interest in options which enables us to offer margin offsets, and our commitment to security futures products will serve this relationship well."
