The company that runs the New York Stock Exchange has taken an ownership stake in the online Receivables Exchange of New Orleans, and the two exchanges announced Tuesday a joint program to offer trading in corporate accounts receivable.
The new Corporate Receivables Program will be marketed by the two exchanges to companies listed on the NYSE and other large firms. The exchanges described the program as the first electronic market place for the standardized purchase and sale of accounts receivable, the money owed to companies from customers who bought goods or services using credit.
On the Receivables Exchange, users buy and sell receivables, invoices and other assets used as collateral in a live auction process. Companies using the exchange are mostly small to medium-sized businesses, so the partnership with NYSE Euronext opens it to big corporations.
The accounts receivable market in the U.S. is valued at $17 trillion, according to the exchanges.
NYSE Euronext also named Paul DeDomenico as head of global corporate receivables programs. He is the former CEO of GE Capital-Working Capital Solutions.
Its new ownership stake in the Receivables Exchange was described as a minority position; the percentage and amount of money invested weren't disclosed.
NYSE Euronext shares rose $1.16, or 4.6 percent, to close Tuesday at $26.28.