NYSE hopes to get into credit derivatives

NEW YORK (Reuters) - NYSE Euronext (NYX.PA: Quote, Profile, Research)(NYX.N: Quote, Profile, Research) is hoping to be involved in the evolving credit derivatives market as the exchange operator looks to expand into other asset classes, its chief executive said on Monday.

The role that NYSE might play is unclear, but it aims to work with regulators, dealers, and others to figure out how it might fit in -- whether in reporting trades that have cleared, providing technology, or in some other role.

"We just want to be part of the solution," NYSE Chief Executive Duncan Niederauer said at the Reuters Exchanges and Trading Summit.

Dealers are working at creating a credit derivatives clearing house, a project that gained momentum after the near-collapse of Bear Stearns Cos Inc (BSC.N: Quote, Profile, Research) raised questions about whether some dealers are safe to trade with.

Clearing Corp, based in Chicago, would operate the clearing house, under a plan major banks are considering now. The banks hope to launch the clearing house in the third quarter.

The clearing house could reduce the amount of capital that banks have to set aside to cover their exposure to other dealers, and reduce the impact of any one dealer's difficulties on the overall market.

Niederauer said, "You won't see us come out independently and make a proposal. It will only be in concert with market participants and the regulators."

Recent market turmoil in fixed income created an opportunity for NYSE to find new ways to generate revenue, Niederauer said, including boosting its fixed-income businesses.

(For summit blog: summitnotebook.reuters.com/)