NYSE Liffe U.S. Gold and Silver Futures Contracts Overview April 2011
NYSE Liffe U.S. The U.S. based futures exchange of NYSE Euronext Launched in September 2008 Multi asset class platform Precious metals futures and options, dominant US market for minis Sole U.S. futures exchange to list MSCI based equity index futures after June 2011 Interest rates futures launched Q1 2011 Powered by state-of-the-art trading platform LIFFE CONNECT LIFFE CONNECT supports NYSE Liffe European business (2010 ADV 4M contracts) Powered CBOT market pre-cme merger Global distribution to 241 members 2 2
Partnership with Leading Market Participants Unique partnership between the world s leading exchange group and its customers Strategic alignment with leading banks and liquidity providers Enhanced distribution Market leading expertise 3
NYSE Liffe U.S. Mini Gold and Mini Silver Futures Established liquidity in the mini complex Combined 2011 ADV in excess of 10K Designated Market Makers (DMMs) provide liquidity across trading hours, products and trading strategies Coverage of Asian, European and US trading hours Dedicated DMMs for outright and spread trading Participation from a broad and diverse client base Active traders Investors Banks CTAs & Funds Physical and Coin traders Tailored Incentive Programs International traders ETF traders Most active members Global FCMs 4
Growth Drivers U.S. investor/trader interest in metals rising (records - AUM in ETFs, coin sales) Retail interest and participation in precious metals futures Physical delivery is a key attraction High turnout for speeches, webinars across the U.S. Steady requests for research on themes such as portfolio diversification, hedging against currency weakness, inflation/deflation Our brand and distribution uniquely position us to attract NYX global clients to NYSE Liffe U.S. futures 5
33.2 oz. Mini Gold Futures (YG) Approx. $263M value traded daily Dominant U.S. based mini gold future (2011 ADV: 5.6K) Average Daily Volume & Open Interest: January 2009 March 2011 6
1,000 oz. Mini Silver Futures (YI) Approx. $192M value traded daily Dominant U.S. based mini silver future (2011 ADV: 5.1K) Average Daily Volume & Open Interest: January 2009 March 2011 7
Mini Gold (YG) Futures and Mini Silver Futures (YI) YG Specifications Contract size: 33.2 troy ounces Tick size: $0.10 per oz., $3.32/contract Contract months: 2 years of February, April, August and October; 5 years of June and December Most active at the moment: June, 2011 Exchange Initial Margin: $2,167 Exchange Maintenance Margin: $1,605 YI Specifications Contract size: 1,000 troy ounces Tick size: $0.001 per oz., $1/contract Contract months: 2 years January, March, May and September; 5 years of July and December Most active at the moment: May, 2011 Initial Margin: $2,228 Maintenance Margin: $1,593 Delivery: One Warehouse Depository Receipt representing 1/3 interest in a gold vault receipt backed by either one 100 oz. bar or 3 kilogram bars; or one gold vault receipt backed by 1 one kilogram bar. Gold stored in New York at: HSBC, Bank of Nova Scotia, Brinks, and MTB Delivery: One Warehouse Depository Receipt representing 1/5 interest in a silver vault receipt backed by five 1000 oz. bars; or 1 silver vault receipt backed by one 1000 oz bar. Silver is stored in New York at: HSBC, Bank of Nova Scotia, Brinks and in Delaware at: Delaware Depository 8
100 oz Gold (ZG) Futures and 5,000 oz Silver Futures (ZI) ZG Specifications Contract size: 100 troy ounces Tick size: $0.10 per oz., $10.00/contract Contract months: 2 years of February, April, August and October; 5 years of June and December Most active at the moment: June, 2011 Initial Margin: $6,500 Maintenance Margin: $4,815 Delivery: 1 vault receipt representing 100 fine troy ounces (+5%), no less than 99.5% fineness, consisting of one 100 ounce bar or three 1 kilogram bars of Exchange approved brands, located in NY at HSBC, Bank of Nova Scotia, Brinks, MTB ZI Specifications Contract size: 5,000 troy ounces Tick size: $0.001 per oz., $1/contract Contract months: 2 years January, March, May and September; 5 years of July and December Most active at the moment: May, 2011 Initial Margin: $11,138 Maintenance Margin: $7,965 Delivery: 1 vault receipt representing 5,000 oz consisting of five 1,000 oz. bars of Exchange approved brands, located in New York at: HSBC, Bank of Nova Scotia, Brinks and in Delaware at: Delaware Depository 9
Disclaimer All proprietary rights and interest in this document shall be vested in NYSE Euronext. NYSE Euronext, NYSE, NYSE Liffe, and NYSE Liffe U.S. are all trademarks of NYSE Euronext. NYSE Euronext shall not be liable (except to the extent required by law) for the use of the information contained herein whether arising in connection with actual trading or otherwise. Neither NYSE Euronext, nor its affiliates, subsidiaries, directors, officers, employees nor agents, is responsible for any errors or omissions contained in this document. This document is for information only and does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any other transaction. All information, descriptions, examples and calculations contained in this document are for guidance purposes only, and should not be treated as definitive. Potential users of contracts referred to in this document should familiarize themselves with the full contract specifications of each of the products concerned as set forth in the relevant rules on the exchange on which such contracts are traded and the relevant rules of the clearinghouse clearing such contracts. 10