03.04.2012

By Simon Miller

NYSE Euronext is planning to launch an electronic retail derivatives market based on commodities, currency pairs, equities and indexes.

The contract for difference market (CFD) will launch in Q1 of 2013 and will be aimed at retail and professional clients, as well as brokers and liquidity providers in the UK and Europe.

Speaking at NYSE's investor day, Garry Jones, head of global derivatives commented: "[The CFD market] has grown dramatically and has applicability across a massive range of assets."

Because the market does not trade as a future contract, it will be able to trade all assets, including those not on NYSE according to Jones.

"We will have markets in oil, in gold, in foreign exchange, in bonds, in different commodities, in interest rates, including those in our markets, but also those in everybody else's market," he added.

Jones added that NYSE would not be trading against its clients, but would be offering matched principle transactions as a regulated multilateral trading facility and the new market is expected to turn a profit in 2014.

At the same meeting, NYSE Euronext chief executive Duncan Niederauer, said the company was looking at cost-cuts of $250m (£156m) in annual expenses while returning to its previous strategy of building a clearing house in Europe following the European regualtor's rejection of the Deutsche Börse deal.