NYSE Euronext Announces Second Quarter 2010 Financial Results
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http://www.businesswire.com/news/home/20100802006935/en
-- Second Quarter GAAP Diluted EPS of $0.70 vs. Prior Year Loss --
-- Diluted EPS of $0.64 vs. $0.51, Up 25% Excluding Merger Expenses, Exit Costs
and Disposal Activities --
-- Derivatives Net Revenue Up 34%; Technology Solutions Revenue Up 29% --
Conference Call, Tuesday, August 3, 2010 at 8:00 a.m. (New York, EDT)/2:00 p.m.
(Paris, CEST)
Financial Highlights1, 2
* Diluted EPS of $0.64 vs. $0.51, up 25%
* Net revenue of $654 million, up 7%
* Fixed operating expenses of $407 million, down from $427 million in 1Q10
* Operating income of $247 million, up 15%
* Operating margin year-to-date of 36% vs. 32% for full-year 2009
* Debt-to-EBITDA ratio declined to 1.9 times, down from 2.6 times at year-end
2009
* Board declares third quarter 2010 cash dividend of $0.30 per share
1 All comparisons versus 2Q09 unless otherwise stated.Excludes merger expenses
and exit costs and net gain from disposal activities.
2 A full reconciliation of our non-GAAP results to our GAAP results is included
in the attached tables.See also our statement on non-GAAP financial measures at
the end of this earnings release.
NEW YORK--(Business Wire)--
NYSE Euronext (NYX) today reported net income of $184 million, or $0.70 per
diluted share for the second quarter of 2010, compared to a net loss of ($182)
million, or ($0.70) per diluted share for the second quarter of 2009. Results
for the second quarter of 2010 and 2009 include $32 million and $442 million,
respectively, of pre-tax merger expenses and exit costs. Second quarter of 2010
results also include a net $54 million pre-tax gain from disposal activities.
Excluding the impact of these items, net income in the second quarter of 2010
was $167 million, or $0.64 per diluted share, compared to $132 million, or $0.51
per diluted share, in the second quarter of 2009.
"Our strong second quarter results were driven by robust trading volumes, strong
revenue generation from new initiatives across our segments and continued cost
discipline," said Duncan L. Niederauer, CEO, NYSE Euronext. "And building upon
the initial steps taken with the creation of NYSE Liffe Clearing in 2009, we
announced our new clearing strategy to develop clearinghouses in London and
Paris by the end of 2012. As we move through the remainder of the year, we are
focused on further strengthening our competitive position and seamlessly
migrating markets and clients to our new data centers, which will serve as the
liquidity hubs of the future and create unparalleled low-latency trading
communities for market participants. The launch of our new data centers is
integral to the implementation of our long-term strategy of operating the most
meaningful capital markets, connecting members of the capital markets community
to our networks and delivering innovative products to our ever expanding client
base."
The table below summarizes our financial results1:
($ in millions, except EPS) 2Q10 1Q10 2Q09 % Δ 2Q10 1H10 1H09 % Δ 1H10
vs. 2Q09 vs. 1H09
Total Revenues2 $1,247 $1,083 $1,252 (0%) $2,330 $2,394 (3%)
Total Revenues, Less Transaction-Based Expenses3 654 645 612 7% 1,299 1,217 7%
Other Operating Expenses 407 427 397 3% 834 819 2%
Operating Income4 $247 $218 $215 15% $465 $398 17%
Net Income4, 5 $167 $140 $132 27% $307 $244 26%
Diluted Earnings Per Share4, 5 $0.64 $0.54 $0.51 25% $1.18 $0.94 26%
Operating Margin 38% 34% 35% 3 ppts 36% 33% 3 ppts
EBITDA Margin 48% 44% 46% 2 ppts 46% 44% 2 ppts
1 A full reconciliation of our non-GAAP results to our GAAP results is included in the attached tables. See also our statement on non-GAAP financial measures at the end of this earnings release.
2 Includes activity assessment fees.
3 Transaction-based expenses include section 31 fees, liquidity payments and routing & clearing fees.
4 Excludes merger expenses and exit costs.
5 Excludes net gain from disposal activities in 2Q10.
"During the quarter, we continued to invest in new business initiatives that
will drive our future growth and further reduced our fixed operating expenses,"
commented Michael S. Geltzeiler, Group Executive Vice President and CFO, NYSE
Euronext. "On a constant dollar, constant portfolio basis, our fixed operating
expenses declined $29 million, or 7%, from the second quarter of 2009. Due to
the strengthening of the dollar, we are revising downward our cost guidance and
now expect full-year 2010 fixed operating expenses to be between $1,685 million
and $1,729 million. And lastly, we made significant progress in de-levering,
reducing our total debt outstanding by $538 million since the beginning of the
year. Reduced debt levels combined with stronger EBITDA generation resulted in a
debt-to-EBITDA ratio of 1.9 times, down from 2.6 times at the end of 2009."
SECOND QUARTER CONSOLIDATED RESULTS
Total revenues less transaction-based expenses (net revenue), which include
Section 31 fees, liquidity payments and routing and clearing fees, was $654
million in the second quarter of 2010, up $42 million, or 7% compared to $612
million in the second quarter of 2009. Second quarter of 2010 net revenue
compared to the second quarter of 2009 included a $19 million negative impact
attributable to foreign currency fluctuations. On a currency neutral basis, net
revenue would have increased 10%. The increase in net revenue compared to the
second quarter of 2009 was primarily driven by a $31 million, or 10% increase in
net transaction and clearing revenue, principally related to derivatives
trading, and a $26 million, or 53% increase in technology services revenue.
These increases were partially offset by declines in revenue from BlueNext
(other revenue), our environmental trading exchange, and market data.
Fixed operating expenses, excluding merger expenses and exit costs, were $407
million, compared to $397 million in the second quarter of 2009. Second quarter
of 2009 fixed operating expenses included a discrete $10 million curtailment
benefit for changes implemented to certain U.S. retiree medical plans. Excluding
the impact of acquisitions, a $9 million positive impact attributable to foreign
currency fluctuations and investment in new businesses, fixed operating expenses
were down $29 million, or 7%, compared to the second quarter of 2009.
Full-year 2010 fixed operating expenses are now expected to be between $1,685
million and $1,729 million, adjusted for currency fluctuations. The new
full-year 2010 fixed operating expense range is based on estimated full-year
2010 average currency rates of EUR/USD $1.30 and GBP/USD $1.50. The previous
full-year 2010 fixed operating expense range of $1,723 million and $1,768
million was based on 2009 average foreign currency rates of EUR/USD $1.39 and
GBP/USD $1.57.
Operating income, excluding merger expenses and exit costs, was $247 million, up
15% compared to the second quarter of 2009. Second quarter 2010 operating income
compared to the second quarter of 2009 includes a $10 million negative impact
attributable to foreign currency fluctuations. Operating margin was 38%, up from
35% in the second quarter of 2009 and well above the 32% recorded for full-year
2009.
Adjusted EBITDA which excludes merger expenses and exit costs, was $313 million,
compared to $281 million in the second quarter of 2009. Adjusted EBITDA margin
was 48% in the second quarter of 2010, compared to 46% in the second quarter of
2009.
Non-operating income for the second quarter of 2010 includes the impact of the
investment in New York Portfolio Clearing (income from associates) and NYSE
Liffe U.S. (net income attributable to non-controlling interest) initiatives.
Both New York Portfolio Clearing and NYSE Liffe U.S. are currently in a loss
position. Non-operating income in the second quarter of 2010 also includes a net
pre-tax gain of $54 million related to disposal activities, primarily in
connection with the sale of our 5% stake in the National Stock Exchange of India
(other income).
The effective tax rate for the second quarter of 2010 was 27.5%.
At June 30, 2010, total debt declined $538 million from December 31, 2009 to
$2.2 billion and consists of $1.9 billion in long-term debt and $0.3 billion in
short-term debt. Cash, cash equivalents, investments and other securities
(including $155 million related to Section 31 fees collected from market
participants and due to the SEC) was $0.4 billion and net debt was $1.8 billion.
Headcount as of June 30, 2010 was 2,993, down 11% from December 31, 2009 and
down 15% from June 30, 2009. June 30, 2010 headcount reflects 165 staff
transitioned to FINRA as part of their agreement to assume market surveillance
and enforcement functions previously conducted by NYSE Regulation.
The Board of Directors declared a cash dividend of $0.30 per share for the third
quarter of 2010. The third quarter 2010 dividend is payable September 30, 2010
to shareholders of record as of the close of business on September 15, 2010. The
anticipated ex-date will be September 13, 2010.
SECOND QUARTER SEGMENT RESULTS
NYSE Euronext`s reportable segments are focused on three global business units:
Derivatives, Cash Trading and Listings, and Information Services and Technology
Solutions. The financial results for each reported segment are presented below.
DERIVATIVES
The table below summarizes our second quarter of 2010 Derivatives segment
results. In the second quarter of 2010, the Derivatives segment represented 35%
of net revenue and 49% of operating income for NYSE Euronext (excluding merger
expenses and exit costs), up from 28% and 32%, respectively, in the second
quarter of 2009.
($ in millions) 2Q10 1Q10 2Q09 % ∆ 2Q10 1H10 1H09 % ∆ 1H10
vs. 2Q09 vs. 1H09
Total Revenues $305 $298 $219 39% $603 $417 45%
Total Revenues, Less Transaction-Based 226 224 169 34% 450 325 38%
Expenses1
Merger Expenses & Exit Costs (M&E) 5 3 371 NM 8 377 NM
Other Operating Expenses 86 94 96 (10%) 180 188 (4%)
Operating Income - GAAP $135 $127 ($298) NM $262 ($240) NM
Operating Income - Excluding M&E $140 $130 $73 92% $270 $137 97%
Adjusted EBITDA $153 $145 $91 68% $298 $175 70%
Operating Margin - Excluding M&E 62% 58% 43% 19 ppts 60% 42% 18 ppts
EBITDA Margin - Excluding M&E 68% 65% 54% 14 ppts 66% 54% 12 ppts
1 Transaction-based expenses include section 31 fees, liquidity payments and routing & clearing fees.
NM=not meaningful
* Derivatives net revenue of $226 million in the second quarter of 2010
increased $57 million, or 34% compared to the second quarter of 2009 and
included an $8 million negative impact from foreign currency fluctuations. Net
revenue increased $2 million, or 1% compared to the first quarter of 2010 and
included a $9 million negative impact from foreign currency. The increase in
Derivatives net revenue compared to the second quarter of 2009 was primarily
driven by a $51 million, or 34% increase in net transaction and clearing revenue
principally due to strong European derivatives products and U.S. options trading
volumes, as well as the contribution of NYSE Liffe Clearing. Adjusting for the
impact of foreign currency fluctuations, Derivatives net revenue in the second
quarter would have increased 38% compared to the second quarter of 2009 and 5%
compared to the first quarter of 2010.
* European derivatives net transaction and clearing revenue of $161 million in
the second quarter of 2010 increased $42 million, or 35% compared to the second
quarter of 2009, and included an $7 million negative impact from foreign
currency fluctuations. Net transaction and clearing revenue decreased $1
million, or 1% compared to first quarter of 2010 and included a $9 million
negative impact from foreign currency fluctuations. The 35% increase compared to
the second quarter of 2009 was primarily driven by a 24% increase in European
derivatives average daily volume (ADV) to 4.0 million contracts (excluding
Bclear) in the second quarter of 2010, from 3.2 million contracts in the prior
year period and the addition of NYSE Liffe Clearing revenue. Adjusting for the
impact of foreign currency fluctuations, net transaction and clearing revenue
would have increased 41% from the second quarter of 2009 and 5% from the first
quarter of 2010.
* The average net rate per contract for European derivatives (excluding Bclear),
including the impact of currency fluctuations, in the second quarter of 2010 was
$0.64 per contract, up from $0.60 per contract in the second quarter of 2009,
but down from $0.66 per contract in the first quarter of 2010. On a currency
neutral basis, using second quarter of 2010 currency rates, the average net rate
per contract in the first quarter of 2010 was $0.63 and $0.58 in the second
quarter of 2009.
* U.S. equity options net transaction revenue of $42 million in the second
quarter of 2010 increased $9 million, or 27% compared to the second quarter of
2009 and was flat compared to the first quarter of 2010. The increase in net
transaction revenue compared to the second quarter of 2009 was primarily driven
by a 57% increase in U.S. equity options ADV to 4.1 million contracts, up from
2.6 million contracts in the prior year period. Net transaction revenue was flat
compared to the first quarter of 2010 due to a decline in capture rates of
approximately 11% which offset a 10% increase in U.S. options ADV in the second
quarter of 2010.
* The average net rate per contract for U.S. equity options in the second
quarter of 2010 was $0.17 per contract, down from $0.20 per contract in the
second quarter of 2009, and down from $0.19 per contract in the first quarter of
2010. The decrease in the average net rate per contract compared to the second
quarter of 2009 was primarily driven by an increase in penny-pilot issues traded
over NYSE Arca. The decrease in the net rate per contract from the first quarter
of 2010 was driven primarily by an increase in penny-pilot issues traded on NYSE
Arca and minor pricing changes which were offset by market share gains.
Penny-pilot issues represented 74% of consolidated U.S. options trading volume
in the second quarter of 2010, compared to 50% in the second quarter of 2009 and
67% in the first quarter of 2010.
* NYSE Euronext`s U.S. equity options exchanges accounted for 26% of total
consolidated equity options trading in the second quarter of 2010, up from 18%
in the second quarter of 2009, but down from 27% in the first quarter. In the
second quarter of 2010, NYSE Euronext was the largest U.S. equity options
exchange operator for the second consecutive quarter.
* Operating income, excluding merger expenses and exit costs, in the second
quarter of 2010 was $140 million, a 92% increase compared to $73 million in the
second quarter of 2009 and an 8% increase from the first quarter of 2010.
* Operating margin, excluding merger expenses and exit costs, was 62%, compared
to 43% in the second quarter of 2009 and 58% in the first quarter of 2010.
Adjusted EBITDA margin was 68%, compared to 54% in the second quarter of 2009
and 65% in the first quarter of 2010.
* NYSE Euronext announced that it will commence clearing its European securities
and derivatives business through two new, purpose-built clearinghouses based in
London and Paris in late 2012.
* New York Portfolio Clearing (NYPC), the innovative joint venture of The
Depository Trust & Clearing Corporation (DTCC) and NYSE Euronext created to
deliver unique capital efficiencies to the market by evaluating and margining a
clearing member`s risk on a portfolio basis across both cash bonds and
derivatives, appointed Walter Lukken as Chief Executive Officer, effective May
1, 2010. The management team for NYPC is now in place with the recent hiring of
a Chief Operating Officer, Chief Risk Officer, Chief Regulatory Officer and Head
of Operations. NYPC is currently undergoing regulatory review and expects to be
operational shortly after regulatory approval.
CASH TRADING AND LISTINGS
The table below summarizes our second quarter of 2010 Cash Trading and Listings
segment results. In the second quarter of 2010, the Cash Trading and Listings
segment represented 49% of net revenue and 44% of operating income for NYSE
Euronext (excluding merger expenses and exit costs), down from 59% and 63%,
respectively, in the second quarter of 2009.
($ in millions) 2Q10 1Q10 2Q09 % ∆ 2Q10 1H10 1H09 % ∆ 1H10
vs. 2Q09 vs. 1H09
Total Revenues1 $835 $676 $949 (12%) $1,511 $1,811 (17%)
Total Revenues, Less Transaction-Based 321 312 359 (11%) 633 726 (13%)
Expenses2
Merger Expenses & Exit Costs (M&E) 19 7 62 (69%) 26 74 (65%)
Other Operating Expenses 195 206 215 (9%) 401 436 (8%)
Operating Income - GAAP $107 $99 $82 30% $206 $216 (5%)
Operating Income - Excluding M&E $126 $106 $144 (13%) $232 $290 (20%)
Adjusted EBITDA $171 $149 $186 (8%) $320 $374 (14%)
Operating Margin - Excluding M&E 39% 34% 40% (1 ppts) 37% 40% (3 ppts)
EBITDA Margin - Excluding M&E 53% 48% 52% 1 ppts 51% 52% (1 ppts)
1 Includes the impact of activity assessment fees.
2 Transaction-based expenses include section 31 fees, liquidity payments and routing & clearing fees.
* Cash Trading and Listings net revenue was $321 million in the second quarter
of 2010, a decrease of $38 million, or 11% compared to the second quarter of
2009 and included an $8 million negative impact from foreign currency
fluctuations. Net revenue increased $9 million, or 3% compared to the first
quarter of 2010 and included a $9 million negative impact from currency
fluctuations. The decrease in net revenue compared to the second quarter of 2009
was primarily driven by a $20 million, or 13% decline in net transaction revenue
and a $14 million, or 28% decline in other revenue. The decline in net
transaction revenue was principally due to pricing reductions in European cash
in 2009 and lower trading volumes and market share in U.S. cash trading. The
decline in other revenue was principally due to a decrease in volumes on
BlueNext, our environmental trading exchange. The increase in net revenue
compared to the first quarter of 2010 was driven primarily by higher net
transaction revenue, principally by a 26% increase in U.S. cash trading ADV and
higher market share. Adjusting for the impact of foreign currency fluctuations,
Cash Trading and Listings net revenue in the second quarter of 2010 would have
decreased 8% compared to the second quarter of 2009 and would have increased 6%
compared to the first quarter of 2010.
* European cash products net transaction revenue of $71 million in the second
quarter of 2010 decreased $10 million, or 12% compared to the second quarter of
2009 and included a $5 million negative impact from currency fluctuations. Net
transaction revenue increased $2 million, or 3% from the first quarter of 2010
and included a $6 million negative impact from currency fluctuations. The
decline in European cash net transaction revenue of $10 million compared to the
second quarter of 2009 was driven primarily by 2009 pricing changes and the
negative impact from currency fluctuations. Adjusting for the impact of foreign
currency fluctuations, net transaction revenue in the second quarter would have
decreased 6% compared to the second quarter of 2009 and would have increased 12%
compared to the first quarter of 2010.
* Average net revenue per transaction for European cash products, including the
impact of currency fluctuations, in the second quarter of 2010 was $0.65 per
transaction, down from $0.90 per transaction in the second quarter of 2009 and
down from $0.80 per transaction in the first quarter of 2010. On a currency
neutral basis, using second quarter of 2010 currency rates, the average net
revenue per transaction in the first quarter of 2010 was $0.74 and $0.84 in the
second quarter of 2009.
* European cash market share (value traded) was 74% in the second quarter of
2010, down from 79% in the second quarter of 2009, but up from 73% in the first
quarter of 2010.
* U.S. cash products net transaction revenue of $60 million decreased $10
million, or 14% from $70 million in the second quarter of 2009, but increased
$10 million, or 20% from the first quarter of 2010. The decline in U.S. cash net
transaction revenue compared to the second quarter of 2009 was primarily driven
by a 12% decline in U.S. cash trading volumes and declines in market share. The
increase in U.S. cash products net transaction revenue compared to the first
quarter of 2010 was primarily driven by a 26% increase in U.S. cash trading
volume and an increase in market share.
* Average net revenue per 100 shares handled for U.S. cash products in the
second quarter of 2010 was $0.030, compared to $0.031 in the second quarter of
2009 and $0.032 in the first quarter of 2010. The decrease in the net rate per
100 shares handled from the first quarter of 2010 was driven by increased
participation by liquidity providers on NYSE in April 2010 and a greater number
of customers reaching volume tiers on NYSE Arca during the month of May 2010 on
strong trading volumes. On May 1, 2010, NYSE Euronext modified pricing on NYSE
which neutralized the increase in participation on the platform. Additionally,
on July 1, 2010 static NYSE Arca volume tiers were eliminated and were replaced
with variable volume tiers based on the consolidated U.S. cash average daily
share volume.
* NYSE Euronext`s Tape A matched market share in the second quarter of 2010 was
37%, down from 39% in the second quarter of 2009, but up from 35% in the first
quarter of 2010.
* Operating income, excluding merger expenses and exit costs, in the second
quarter of 2010 was $126 million, a 13% decline compared to $144 million in the
second quarter of 2009, but a 19% increase from the first quarter of 2010.
* Operating margin, excluding merger expenses and exit costs, was 39%, compared
to 40% in the second quarter of 2009 and 34% in the first quarter of 2010.
Adjusted EBITDA margin was 53%, compared to 52% in the second quarter of 2009
and 48% in the first quarter of 2010.
* NYSE Euronext`s global listings franchise experienced increased momentum in
the first-half of 2010. A total of nine companies for a combined market
capitalization of over $30 billion have announced transfers to NYSE Euronext
markets from other exchanges including Kapstone Paper and Packaging, Targa
Resources Partners, Charles Schwab, Paragon Shipping, Inergy, Inergy Holdings,
Orion Energy Systems, Knight Capital Group, and Monmouth REIT.
* A total of 55 IPOs listed on NYSE Euronext markets for total proceeds of $13.4
billion in the first half of 2010, compared to a total of 21 IPOs for $4.4
billion during the same period last year. Total proceeds raised year-to-date
June 2010 include the $2.2 billion IPO of UC Rusal (Russia) on the Paris market
in conjunction with their listing on Hong Kong. UC Rusal is the first Russian
company to list on the European markets of NYSE Euronext. The $13.4 billion
raised on NYSE Euronext markets in the first-half of 2010 was nearly three times
the amount raised by any other U.S. exchange during the period according to
Dealogic.
* Venture Capital and Technology-related IPOs continue to be an area of strength
for NYSE Euronext and the pipeline for the remainder of the year is strong.
Venture Capital and Technology-related IPOs year-to-date include Sensata
Technologies, MaxLinear, Calix, Higher One Holdings, Fabrinet, RealD and Green
Dot.
* SmartPool, NYSE Euronext`s European dark pool established in partnership with
HSBC, J.P. Morgan and BNP Paribas, experienced significant growth in the second
quarter of 2010, with matched volume increasing to €5.7 billion, making
SmartPool the third largest dark Multi-Lateral Trading Facility (MTF) in the
second quarter.
* On July 13, 2010 NYSE Euronext began trading Tape C stocks on an Unlisted
Trading Privilege (UTP) basis over the NYSE Amex platform, bringing a NYSE
Euronext`s differentiated market model to the trading of Nasdaq-listed issues.
With the addition of NYSE Amex, a designated market maker (DMM) is assigned to
each issue with an obligation to make fair, orderly markets and to quote at the
best bid or offer a certain percentage of the time. In addition to a DMM, there
are one or more off-floor supplemental liquidity providers (SLP) for most issues
with an incentive to add liquidity. Trading of Tape C stocks over NYSE Amex
began with 10 issues and has now expanded to approximately 675 NASDAQ-listed
issues.
* The Financial Industry Regulatory Authority (FINRA) assumed responsibility for
performing the market surveillance and enforcement functions previously
conducted by NYSE Regulation for NYSE Euronext`s U.S. equities and options
markets - the New York Stock Exchange, NYSE Arca and NYSE Amex.
INFORMATION SERVICES AND TECHNOLOGY SOLUTIONS
The table below summarizes our second quarter of 2010 Information Services and
Technology Solutions segment results. In the second quarter of 2010, the
Information Services and Technology Solutions segment represented 16% of net
revenue and 7% of operating income for NYSE Euronext (excluding merger expenses
and exit costs), up from 14% and 5%, respectively, in the second quarter of
2009.
($ in millions) 2Q10 1Q10 2Q09 % ∆ 2Q10 1H10 1H09 % ∆ 1H10
vs. 2Q09 vs. 1H09
Total Revenues $107 $110 $83 29% $217 $166 31%
Merger Expenses & Exit Costs (M&E) 8 2 7 14% 10 12 (17%)
Other Operating Expenses 87 93 71 23% 180 143 26%
Operating Income - GAAP $12 $15 $5 140% $27 $11 145%
Operating Income - Excluding M&E $20 $17 $12 67% $37 $23 61%
Adjusted EBITDA $28 $25 $18 56% $53 $35 51%
Operating Margin - Excluding M&E 19% 15% 14% 5 ppts 17% 14% 3 ppts
EBITDA Margin - Excluding M&E 26% 23% 22% 4 ppts 24% 21% 3 ppts
* Information Services and Technology Solutions revenue was $107 million in the
second quarter of 2010, an increase of $24 million, or 29% compared to the
second quarter of 2009 and included a $3 million negative impact from foreign
currency fluctuations. Revenue decreased $3 million, or 3% compared to the first
quarter of 2010 and included a $4 million negative impact from foreign currency
fluctuations. The increase in revenue compared to the second quarter of 2009 was
primarily driven by the impact of the NYFIX acquisition and an increase in
global SFTI and software sales revenue. Adjusting for the impact of foreign
currency fluctuations, revenue in the second quarter would have increased 33%
compared to the second quarter of 2009 and would have increased 1% compared to
the first quarter of 2010.
* Operating income, excluding merger expenses and exit costs, in the second
quarter of 2010 was $20 million, a 67% increase compared to $12 million in the
second quarter of 2009 and an 18% increase from the first quarter of 2010.
* Operating margin, excluding merger expenses and exit costs, was 19%, compared
to 14% in the second quarter of 2009 and 15% in the first quarter of 2010.
Adjusted EBITDA margin was 26%, compared to 22% in the second quarter of 2009
and 23% in the first quarter of 2010.
* During the second quarter of 2010 NYSE Technologies closed several multi-year
software and infrastructure deals with leading investment banks and brokerage
firms. The signed deals are reflective of NYSE Technologies growing capabilities
and deepening technology relationships with leading sell-side firms.
* NYSE Technologies and Markit, a leading global financial information services
company announced the launch of a joint initiative designed to consolidate data
and enhance transparency in the European over-the-counter (OTC) equity markets.
As part of this joint initiative, NYSE Technologies will integrate data from
Markit BOAT, the largest trade reporting venue in Europe, within its own range
of market data products. This will give joint users access to trade reports on
an average of roughly €30 billion of OTC trades in equities every day,
equivalent to approximately 80% (data through April 2010) of the daily volume
traded on all European equity markets. The initiative is open to other
publication venues in Europe in order to give market participants access to the
most comprehensive dataset on the European OTC equity markets from a single
source.
* NYSE Euronext and the Warsaw Stock Exchange (WSE) announced a strategic,
long-term cooperation agreement covering the development of future
mutually-beneficial business initiatives and the migration of WSE markets to
NYSE Technologies Universal Trading Platform. As part of a multi-year commercial
agreement, NYSE Euronext will provide WSE with the Universal Trading Platform
for its cash and derivative markets.
CORPORATE AND ELIMINATIONS
Summarized below are the results for Corporate and Eliminations. Corporate and
Eliminations includes unallocated costs primarily related to corporate
governance, public company expenses, one-time integration costs related to the
new data centers, as well as intercompany eliminations of revenues and
expenses.
($ in millions) 2Q10 1Q10 2Q09 % ∆ 2Q10 1H10 1H09 % ∆ 1H10
vs. 2Q09 vs. 1H09
Total Revenues $- ($1) $1 NM ($1) $- NM
Merger Expenses & Exit Costs (M&E) - 1 2 NM 1 2 (50%)
Other Operating Expenses 39 34 15 NM 73 52 40%
Operating Income - GAAP ($39) ($36) ($16) NM ($75) ($54) (39%)
Operating Income - Excluding M&E ($39) ($35) ($14) NM ($74) ($52) (42%)
Adjusted EBITDA ($39) ($35) ($14) NM ($74) ($52) (42%)
Operating Margin - Excluding M&E NM NM NM NM NM
EBITDA Margin - Excluding M&E NM NM NM NM NM
NM=Not meaningful
* Fixed operating expenses in the second quarter of 2010 increased $24 million
compared to second quarter of 2009 due to an increase in data center/integration
costs of $15 million and a discrete $10 million curtailment benefit for changes
implemented to certain U.S. retiree medical plans in the second quarter of
2009.
Analyst/Investor/Media Call: August 3, 2010 at 8:00 a.m. (NY/EDT)/2:00 p.m.
(Paris/CEST)
A presentation and live audio webcast of the second quarter 2010 earnings
conference call will be available on the Investor Relations section of NYSE
Euronext`s website, http://www.nyseeuronext.com/ir. Those wishing to listen to
the live conference via telephone should dial-in at least ten minutes before the
call begins. An audio replay of the conference call will be available
approximately one hour after the call on the Investor Relations section of NYSE
Euronext`s website, http://www.nyseeuronext.com/ir or by dial-in beginning
approximately two hours following the conclusion of the live call.
Live Dial-in Information:
United States: 866.788.0541
International: 857.350.1679
Passcode: 83134795
Replay Dial-in Information:
United States: 888.286.8010
International: 617.801.6888
Passcode: 59984384
Non-GAAP Financial Measures
To supplement NYSE Euronext`s consolidated financial statements prepared in
accordance with GAAP and to better reflect period-over-period comparisons, NYSE
Euronext uses non-GAAP financial measures of performance, financial position, or
cash flows that either exclude or include amounts that are not normally excluded
or included in the most directly comparable measure, calculated and presented in
accordance with GAAP. Non-GAAP financial measures do not replace and are not
superior to the presentation of GAAP financial results, but are provided to (i)
present the effects of certain merger expenses, exit costs and other special
items, and (ii) improve overall understanding of NYSE Euronext`s current
financial performance and its prospects for the future. Specifically, NYSE
Euronext believes the non-GAAP financial results provide useful information to
both management and investors regarding certain additional financial and
business trends relating to financial condition and operating results. In
addition, management uses these measures for reviewing financial results and
evaluating financial performance. The non-GAAP adjustments for all periods
presented are based upon information and assumptions available as of the date of
this release.
NYSE Euronext Earnings News Release with Tables and Operating Data
About NYSE Euronext
NYSE Euronext (NYX) is a leading global operator of financial markets and
provider of innovative trading technologies. The company's exchanges in Europe
and the United States trade equities, futures, options, fixed-income and
exchange-traded products. With approximately 8,000 listed issues (excluding
European Structured Products), NYSE Euronext's equities markets - the New York
Stock Exchange, NYSE Euronext, NYSE Amex, NYSE Alternext and NYSE Arca -
represent one-third of the world's equities trading, the most liquidity of any
global exchange group. NYSE Euronext also operates NYSE Liffe, one of the
leading European derivatives businesses and the world's second-largest
derivatives business by value of trading. The company offers comprehensive
commercial technology, connectivity and market data products and services
through NYSE Technologies. NYSE Euronext is in the S&P 500 index, and is the
only exchange operator in the S&P 100 index and Fortune 500. For more
information, please visit: http://www.nyx.com.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements, including
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements include, but are
not limited to, statements concerning NYSE Euronext`s plans, objectives,
expectations and intentions and other statements that are not historical or
current facts. Forward-looking statements are based on NYSE Euronext`s current
expectations and involve risks and uncertainties that could cause actual results
to differ materially from those expressed or implied in such forward-looking
statements. Factors that could cause NYSE Euronext`s results to differ
materially from current expectations include, but are not limited to: NYSE
Euronext`s ability to implement its strategic initiatives, economic, political
and market conditions and fluctuations, government and industry regulation,
interest rate risk and U.S. and global competition, and other factors detailed
in NYSE Euronext`s reference document for 2009 ("document de référence") filed
with the French Autorité des Marchés Financiers (Filed on April 22, 2010 under
No. D.10-0304), 2009 Annual Report on Form 10-K and other periodic reports filed
with the U.S. Securities and Exchange Commission or the French Autorité des
Marchés Financiers. In addition, these statements are based on a number of
assumptions that are subject to change. Accordingly, actual results may be
materially higher or lower than those projected. The inclusion of such
projections herein should not be regarded as a representation by NYSE Euronext
that the projections will prove to be correct. This press release speaks only as
of this date. NYSE Euronext disclaims any duty to update the information
herein.
NYSE Euronext
Condensed consolidated statements of income (unaudited)
(in millions, except per share data)
Three months ended June 30, Six months ended June 30,
2010 2009 2010 2009
Revenues
Transaction and clearing fees $ 927 $ 943 $ 1,689 $ 1,773
Market data 93 101 184 204
Listing 105 101 210 201
Technology services 75 49 154 99
Other revenues 47 58 93 117
Total revenues 1,247 1,252 2,330 2,394
Transaction-based expenses:
Section 31 fees 99 126 162 156
Liquidity payments, routing and clearing 494 514 869 1,021
Total revenues, less transaction-based expenses 654 612 1,299 1,217
Other operating expenses
Compensation 160 158 [a] 332 326 [a]
Depreciation and amortization 66 66 132 134
Systems and communications 47 56 99 113
Professional services 66 43 124 98
Selling, general and administrative 68 74 147 148
Merger expenses and exit costs 32 442 45 465
Total other operating expenses 439 839 879 1,284
Operating income (loss) 215 (227 ) 420 (67 )
Net interest and investment (loss) income (25 ) (28 ) (52 ) (54 )
Income (loss) from associates (1 ) - (3 ) -
Other income 56 4 53 8
Income (loss) before income taxes 245 (251 ) 418 (113 )
Income tax (provision) benefit (66 ) 72 (114 ) 40
Net income (loss) 179 (179 ) 304 (73 )
Net loss (income) attributable to noncontrolling interest 5 (3 ) 10 (5 )
Net income (loss) attributable to NYSE Euronext $ 184 $ (182 ) $ 314 $ (78 )
Basic earnings per share attributable to NYSE Euronext $ 0.70 $ (0.70 ) $ 1.20 $ (0.30 )
Diluted earnings per share attributable to NYSE Euronext $ 0.70 $ (0.70 ) $ 1.20 $ (0.30 )
Basic weighted average shares outstanding 261 260 261 260
Diluted weighted average shares outstanding 261 260 261 260
[a] The results of operations for the three and six months ended June 30, 2009 include a $10 million benefit curtailment gain.
We use non-GAAP financial measures of operating performance. Non-GAAP measures do not replace and are not superior to the presentation of
our GAAP financial results but are provided to improve overall understanding of our current financial performance and our prospects for the future.
Three months ended June 30, Six months ended June 30,
Non-GAAP Reconciliation 2010 2009 2010 2009
Income (loss) before income taxes - GAAP $ 245 $ (251 ) $ 418 $ (113 )
Excluding:
Merger expenses and exit costs 32 442 45 465
Net gain on disposal activities (54 ) - (54 ) -
Income before income taxes - as adjusted 223 191 409 352
Income tax provision (61 ) (56 ) (112 ) (103 )
Net income - as adjusted 162 135 297 249
Net loss (income) attributable to noncontrolling interest 5 (3 ) 10 (5 )
Net income attributable to NYSE Euronext - as adjusted $ 167 $ 132 $ 307 $ 244
Diluted earnings per share attributable to NYSE Euronext $ 0.64 $ 0.51 $ 1.18 $ 0.94
NYSE Euronext
Segment Results (unaudited)
(in millions)
Three months ended Three months ended
June 30, 2010 June 30, 2009
Derivatives Cash Trading Information Corporate and Consolidated Derivatives Cash Trading Information Corporate and Consolidated
and Listings Services and Eliminations and Listings Services Eliminations
Technology and
Solutions Technology
Solutions
Revenues
Transaction and clearing fees $ 282 $ 645 $ - $ - $ 927 $ 202 $ 741 $ - $ - $ 943
Market data 12 49 32 - 93 10 57 34 - 101
Listing - 105 - - 105 - 101 - - 101
Technology services - - 75 - 75 - - 49 - 49
Other revenues 11 36 - - 47 7 50 - 1 58
Total revenues 305 835 107 - 1,247 219 949 83 1 1,252
Transaction-based expenses:
Section 31 fees - 99 - - 99 - 126 - - 126
Liquidity payments, routing and clearing 79 415 - - 494 50 464 - - 514
Total revenues, less transaction-based expenses 226 321 107 - 654 169 359 83 1 612
Depreciation and amortization [a] 13 45 8 - 66 18 42 6 - 66
Merger expenses and exit costs (M&E) [b] 5 19 8 - 32 371 62 7 2 442
Other operating expenses 73 150 79 39 341 78 173 65 15 331
Operating income (loss) - GAAP [c] $ 135 $ 107 $ 12 $ (39 ) $ 215 $ (298 ) $ 82 $ 5 $ (16 ) $ (227 )
Operating income excluding M&E [c] + [b] $ 140 $ 126 $ 20 $ (39 ) $ 247 $ 73 $ 144 $ 12 $ (14 ) $ 215
Adjusted EBITDA [c] + [a] + [b] $ 153 $ 171 $ 28 $ (39 ) $ 313 $ 91 $ 186 $ 18 $ (14 ) $ 281
Operating margin excluding M&E 62 % 39 % 19 % N/M 38 % 43 % 40 % 14 % N/M 35 %
Adjusted EBITDA margin 68 % 53 % 26 % N/M 48 % 54 % 52 % 22 % N/M 46 %
Six months ended Six months ended
June 30, 2010 June 30, 2009
Derivatives Cash Trading Information Corporate and Consolidated Derivatives Cash Trading Information Corporate and Consolidated
and Listings Services and Eliminations and Listings Services and Eliminations
Technology Technology
Solutions Solutions
Revenues
Transaction and clearing fees $ 560 $ 1,129 $ - $ - $ 1,689 $ 384 $ 1,389 $ - $ - $ 1,773
Market data 24 97 63 - 184 21 116 67 - 204
Listing - 210 - - 210 - 201 - - 201
Technology services - - 154 - 154 - - 99 - 99
Other revenues 19 75 - (1 ) 93 12 105 - - 117
Total revenues 603 1,511 217 (1 ) 2,330 417 1,811 166 - 2,394
Transaction-based expenses:
Section 31 fees - 162 - - 162 - 156 - - 156
Liquidity payments, routing and clearing 153 716 - - 869 92 929 - - 1,021
Total revenues, less transaction-based expenses 450 633 217 (1 ) 1,299 325 726 166 - 1,217
Depreciation and amortization [a] 28 88 16 - 132 38 84 12 - 134
Merger expenses and exit costs (M&E) [b] 8 26 10 1 45 377 74 12 2 465
Other operating expenses 152 313 164 73 702 150 352 131 52 685
Operating income (loss) - GAAP [c] $ 262 $ 206 $ 27 $ (75 ) $ 420 $ (240 ) $ 216 $ 11 $ (54 ) $ (67 )
Operating income excluding M&E [c] + [b] $ 270 $ 232 $ 37 $ (74 ) $ 465 $ 137 $ 290 $ 23 $ (52 ) $ 398
Adjusted EBITDA [c] + [a] + [b] $ 298 $ 320 $ 53 $ (74 ) $ 597 $ 175 $ 374 $ 35 $ (52 ) $ 532
Operating margin excluding M&E 60 % 37 % 17 % N/M 36 % 42 % 40 % 14 % N/M 33 %
Adjusted EBITDA margin 66 % 51 % 24 % N/M 46 % 54 % 52 % 21 % N/M 44 %
We use non-GAAP financial measures of operating performance. Non-GAAP measures do not replace and are not superior to the presentation of
N/M = Not meaningful our GAAP financial results but are provided to improve overall understanding of our current financial performance and our prospects for the future.
NYSE Euronext
Fixed operating expenses (unaudited)
(in millions)
Fixed operating expenses for the three months ended June 30, 2010 - GAAP $ 439
Less:
Merger expenses and exit costs (32 )
$ 407
Excluding the impact of:
Currency translation 9
Acquisitions and dispositions, net (10 ) *
New business initiatives (13 ) **
Duplicative datacenter and integration (15 )
Fixed operating expenses for the three months ended June 30, 2010 - as adjusted $ 378 [a]
Fixed operating expenses for the three months ended June 30, 2009 - GAAP $ 839
Less:
Merger expenses and exit costs (442 )
Excluding the impact of:
Benefit curtailment gain 10 ***
Fixed operating expenses for the three months ended June 30, 2009 - as adjusted $ 407 [b]
Variance ($) $ (29 ) [a] - [b] = [c]
Variance (%) -7 % [c] / [b]
Fixed operating expenses for the six months ended June 30, 2010 - GAAP $ 879
Less:
Merger expenses and exit costs (45 )
$ 834
Excluding the impact of:
Currency translation (2 )
Acquisitions and dispositions, net (22 ) *
New business initiatives (28 ) **
Duplicative datacenter and integration (24 )
Fixed operating expenses for the six months ended June 30, 2010 - as adjusted $ 758 [a]
Fixed operating expenses for the six months ended June 30, 2009 - GAAP $ 1,284
Less:
Merger expenses and exit costs (465 )
Excluding the impact of:
Benefit curtailment gain 10 ***
Fixed operating expenses for the six months ended June 30, 2009 - as adjusted $ 829 [b]
Variance ($) $ (71 ) [a] - [b] = [c]
Variance (%) -9 % [c] / [b]
* Includes the contribution of NYFIX, net of the disposition of Hugin.
** Includes the contribution of new business initiatives, primarily NYSE Liffe Clearing.
*** Includes curtailment gain associated with changes to U.S. retiree medical plan.
We use non-GAAP financial measures of operating performance. Non-GAAP measures do not replace and are not superior to the presentation of
our GAAP financial results but are provided to improve overall understanding of our current financial performance and our prospects for the future.
NYSE Euronext
Condensed consolidated statements of financial condition (unaudited)
(in millions)
June 30, December
2010 31, 2009
Assets
Current assets:
Cash, cash equivalents, investment and other securities $ 419 $ 490
Accounts receivable, net 729 660
Deferred income taxes 83 100
Other current assets 181 270
Total current assets 1,412 1,520
Property and equipment, net 991 986
Goodwill 3,863 4,210
Other intangible assets, net 5,532 6,184
Deferred income taxes 618 680
Investment in associates and other assets 627 802
Total assets $ 13,043 $ 14,382
Liabilities and equity
Accounts payable and accrued expenses $ 1,110 $ 1,352
Deferred revenue 368 163
Short term debt 282 616
Deferred income taxes 17 18
Total current liabilities 1,777 2,149
Long term debt 1,962 2,166
Deferred income taxes 1,970 2,090
Accrued employee benefits 482 504
Deferred revenue 354 362
Other liabilities 169 176
Total liabilities 6,714 7,447
Equity 6,329 6,935
Total liabilities and equity $ 13,043 $ 14,382
NYSE Euronext
Selected Statistical Data
Trading Volume and Revenue Capture Summary
Average Daily Volume Total Volume Total Volume
(Unaudited) 2Q10 1Q10 2Q09 2Q10 vs. 2Q09 2Q10 1Q10 2Q09 2Q10 vs. 2Q09 YTD 2010 YTD 2009 % Chg
% Chg % Chg
Number of Trading Days - European Markets 63 63 62 63 63 62 126 125
Number of Trading Days - U.S. Markets 63 61 63 63 61 63 124 124
European Derivatives Products (contracts in thousands) 6,628 4,851 4,884 35.7 % 417,597 305,606 302,754 37.9 % 723,204 540,843 33.7 %
of which Bclear 2,651 972 1,681 57.7 % 167,029 61,234 104,198 60.3 % 228,263 148,239 54.0 %
Avg. Net Rate Per Contract (ex. Bclear) $ 0.64 $ 0.66 $ 0.60 6.7 % $ 0.64 $ 0.66 $ 0.60 6.7 %
Total Interest Rate Products1 2,668 2,711 2,163 23.4 % 168,095 170,820 134,063 25.4 % 338,916 259,247 30.7 %
Short Term Interest Rate Products 2,546 2,594 2,064 23.4 % 160,423 163,418 127,949 25.4 % 323,841 246,800 31.2 %
Medium and Long Term Interest Rate Products 122 117 99 24.1 % 7,672 7,402 6,114 25.5 % 15,075 12,447 21.1 %
Total Equity Products2 3,905 2,088 2,672 46.2 % 246,021 131,513 165,649 48.5 % 377,534 275,691 36.9 %
Individual Equity Products 3,197 1,466 2,060 55.2 % 201,434 92,343 127,714 57.7 % 293,777 196,159 49.8 %
Futures 2,402 726 1,417 69.5 % 151,304 45,712 87,873 72.2 % 197,016 115,450 70.7 %
Options 796 740 643 23.8 % 50,130 46,631 39,841 25.8 % 96,760 80,709 19.9 %
Equity Index Products 708 622 612 15.7 % 44,587 39,170 37,935 17.5 % 83,758 79,532 5.3 %
of which Bclear 2,651 972 1,681 57.8 % 167,029 61,234 104,198 60.3 % 228,263 148,239 54.0 %
Individual Equity Products 2,551 851 1,556 64.0 % 160,737 53,634 96,474 66.6 % 214,371 131,234 63.3 %
Futures 2,400 725 1,405 70.8 % 151,223 45,653 87,112 73.6 % 196,877 114,269 72.3 %
Options 151 127 151 0.3 % 9,514 7,981 9,362 1.6 % 17,495 16,966 3.1 %
Equity Index Products 100 121 125 -19.8 % 6,292 7,600 7,724 -18.5 % 13,892 17,005 -18.3 %
Commodity Products 55 52 49 12.6 % 3,481 3,273 3,042 14.4 % 6,754 5,905 14.4 %
U.S. Derivatives Products - Equity Options 3 (contracts in thousands)
Options Contracts 4,064 3,713 2,590 56.9 % 256,038 226,490 163,192 56.9 % 482,527 302,309 59.6 %
Avg. Net Rate Per Contract $ 0.17 $ 0.19 $ 0.20 -15.0 % $ 0.17 $ 0.19 $ 0.20 -15.0 % $ 0.17 $ 0.22 -22.7 %
Total Consolidated Options Contracts 15,683 13,975 14,229 10.2 % 988,057 825,501 896,411 10.2 % 1,840,558 1,697,023 8.5 %
Share of Total 25.9 % 26.6 % 18.2 % 25.9 % 26.6 % 18.2 % 26.2 % 17.8 %
NYSE Liffe U.S.
Futures and Futures Options Volume 18.6 20.8 13.9 33.3 % 1,170.0 1,267.7 877.4 33.3 % 2,437.7 2,163.5 12.7 %
European Cash Products (trades in thousands) 1,722 1,369 1,455 18.4 % 108,485 86,224 90,184 20.3 % 194,709 176,812 10.1 %
Avg. Net Revenue Per Transaction $ 0.65 $ 0.80 $ 0.90 -27.8 % $ 0.65 $ 0.80 $ 0.90 -27.8 %
Equities 1,654 1,313 1,395 18.6 % 104,207 82,696 86,504 20.5 % 186,904 169,003 10.6 %
Exchange-Traded Funds 22 16 15 46.7 % 1,361 1,012 912 49.3 % 2,373 1,783 33.1 %
Structured Products 40 34 39 3.6 % 2,532 2,115 2,409 5.1 % 4,647 5,324 -12.7 %
Bonds 6 6 6 5.4 % 385 401 359 7.1 % 785 702 11.8 %
U.S. Cash Products (shares in millions) 3,214 2,541 3,642 -11.7 % 202,510 154,993 229,433 -11.7 % 357,503 474,990 -24.7 %
Avg. Net Revenue Per 100 Shares Handled $ 0.030 $ 0.032 $ 0.031 -3.2 % $ 0.030 $ 0.032 $ 0.031 -3.2 % $ 0.031 $ 0.026 19.0 %
NYSE Listed Issues 4
Handled Volume 5 2,367 1,824 2,634 -10.2 % 149,105 111,249 165,966 -10.2 % 260,354 344,346 -24.4 %
Matched Volume 6 2,219 1,692 2,394 -7.3 % 139,798 103,195 150,847 -7.3 % 242,993 312,247 -22.2 %
Total NYSE Listed Consolidated Volume 6,019 4,866 6,086 -1.1 % 379,202 296,818 383,397 -1.1 % 676,021 772,291 -12.5 %
Share of Total NYSE Listed Consolidated Volume
Handled Volume 5 39.3 % 37.5 % 43.3 % -4.0 % 39.3 % 37.5 % 43.3 % -4.0 % 38.5 % 44.6 % -6.1 %
Matched Volume 6 36.9 % 34.8 % 39.3 % -2.4 % 36.9 % 34.8 % 39.3 % -2.4 % 35.9 % 40.4 % -4.5 %
NYSE Arca & Amex Listed Issues
Handled Volume 5 483 381 608 -20.5 % 30,460 23,260 38,298 -20.5 % 53,720 80,042 -32.9 %
Matched Volume 6 434 337 531 -18.3 % 27,327 20,579 33,456 -18.3 % 47,906 70,246 -31.8 %
Total NYSE Arca & Amex Listed Consolidated Volume 1,842 1,470 2,253 -18.2 % 116,057 89,652 141,909 -18.2 % 205,709 286,062 -28.1 %
Share of Total NYSE Arca & NYSE Amex Listed Consolidated Volume
Handled Volume 5 26.2 % 25.9 % 27.0 % -0.8 % 26.2 % 25.9 % 27.0 % -0.8 % 26.1 % 28.0 % -1.9 %
Matched Volume 6 23.5 % 23.0 % 23.6 % -0.1 % 23.5 % 23.0 % 23.6 % -0.1 % 23.3 % 24.6 % -1.3 %
Nasdaq Listed Issues
Handled Volume 5 364 336 400 -8.9 % 22,945 20,484 25,169 -8.8 % 43,428 50,602 -14.2 %
Matched Volume 6 307 275 328 -6.4 % 19,337 16,750 20,633 -6.3 % 36,088 41,686 -13.4 %
Total Nasdaq Listed Consolidated Volume 2,529 2,339 2,409 5.0 % 159,309 142,682 151,790 5.0 % 301,991 288,024 4.8 %
Share of Total Nasdaq Listed Consolidated Volume
Handled Volume 5 14.4 % 14.4 % 16.6 % -2.2 % 14.4 % 14.4 % 16.6 % -2.2 % 14.4 % 17.6 % -3.2 %
Matched Volume 6 12.1 % 11.7 % 13.6 % -1.5 % 12.1 % 11.7 % 13.6 % -1.5 % 11.9 % 14.5 % -2.6 %
Exchange-Traded Funds 5,7
Handled Volume 5 465 365 598 -22.2 % 29,317 22,256 37,655 -22.1 % 51,573 79,811 -35.4 %
Matched Volume 6 418 324 523 -20.0 % 26,361 19,774 32,978 -20.1 % 46,135 70,168 -34.3 %
Total ETF Consolidated Volume 1,826 1,443 2,278 -19.9 % 115,020 88,017 143,542 -19.9 % 203,037 292,412 -30.6 %
Share of Total ETF Consolidated Volume
Handled Volume 5 25.5 % 25.3 % 26.2 % -0.7 % 25.5 % 25.3 % 26.2 % -0.7 % 25.4 % 27.3 % -1.9 %
Matched Volume 6 22.9 % 22.5 % 23.0 % -0.1 % 22.9 % 22.5 % 23.0 % -0.1 % 22.7 % 24.0 % -1.3 %
1 Data includes currency products.
2 Includes all trading activities for Bclear, NYSE Liffe's clearing service for wholesale derivatives.
3 Includes trading in U.S. equity options contracts, not equity-index options.
4 Includes all volume executed in NYSE crossing sessions.
5 Represents the total number of shares of equity securities and ETFs internally matched on NYSE Euronext's exchanges or routed to and executed at an external market center. NYSE Arca routing includes odd-lots.
6 Represents the total number of shares of equity securities and ETFs executed on NYSE Euronext's exchanges.
7 Data included in previously identified categories.
Source: NYSE Euronext, Options Clearing Corporation and Consolidated Tape as reported for equity securities.
All trading activity is single-counted, except European cash trading which is double counted to include both buys and sells.
NYSE Euronext
Selected Statistical Data:
Other Operating Statistics
Three Months Ended
(Unaudited) June 30, 2010 March 31, 2010 June 30, 2009
NYSE Euronext Listed Issuers
NYSE Listed Issuers
Issuers listed on U.S. Markets1 2,934 2,919 2,988
Number of new issuer listings1 35 39 74
Capital raised in connection with new listings ($millions)2 $3,575 $3,472 $1,445
Euronext Listed Issuers
Issuers listed on Euronext1 1,013 1,031 1,046
Number of new issuer listings3 21 18 6
Capital raised in connection with new listings ($millions)2 $81 $432 $1
NYSE Euronext Market Data
NYSE Market Data4
Share of Tape A revenues (%) 47.7% 44.4% 47.5%
Share of Tape B revenues (%) 33.4% 34.2% 33.8%
Share of Tape C revenues (%) 18.8% 18.4% 19.6%
Professional subscribers (Tape A) 382,133 381,873 403,588
Euronext Market Data
Number of terminals 239,919 238,905 250,689
NYSE Euronext Operating Expenses
NYSE Euronext employee headcount
NYSE Euronext headcount 2,993 3,216 3,538
NYSE Euronext Financial Statistics
NYSE Euronext foreign exchange rate
Average €/US$ exchange rate $1.274 $1.384 $1.364
Average £/US$ exchange rate $1.492 $1.560 $1.551
1 Figures for NYSE listed issuers include listed operating companies, special-purpose acquisition companies and closed-end funds listed on the NYSE and NYSE Amex and do not
include NYSE Arca or structured products listed on the NYSE. There were 1,085 ETFs and 3 operating companies exclusively listed on NYSE Arca as of June 30, 2010. There
were 494 corporate structured products listed on the NYSE as of June 30, 2010.
Figures for new issuer listings include NYSE new listings (including new operating companies, special-purpose acquisition companies and closed-end funds listing on NYSE)
and new ETP listings on NYSE Arca (NYSE Amex is excluded). Figures for Euronext present the operating companies were listed on Euronext and do not include NYSE Alternext,
Free Market, closed-end funds, ETFs and structured product (warrants and certificates). As of June 30, 2010, 143 companies were listed on NYSE Alternext, 311 on Free
Market and 541 ETFs were listed on NextTrack.
2 Euronext figures show capital raised in millions of dollars by operating companies listed on Euronext, NYSE Alternext and Free Market and do not include closed-end funds,
ETFs and structured products (warrants and certificates). NYSE figures show capital raised in millions of dollars by operating companies listed on NYSE and NYSE Arca and
do not include closed-end funds, ETFs and structured products.
3 Euronext figures include operating companies listed on Euronext, NYSE Alternext and Free Market and do not include closed-end funds, ETFs and structured products
(warrants and certificates).
4 "Tape A" represents NYSE listed securities, "Tape B" represents NYSE Arca and NYSE Amex listed securities, and "Tape C" represents Nasdaq listed securities. Per
Regulation NMS, as of April 1, 2007, share of revenues is derived through a formula based on 25% share of trading, 25% share of value traded, and 50% share of quoting, as
reported to the consolidated tape. Prior to April 1, 2007, share of revenues for Tape A and B was derived based on number of trades reported to the consolidated tape, and
share of revenue for Tape C was derived based on an average of share of trades and share of volume reported to the consolidated tape. The consolidated tape refers to the
collection and dissemination of market data that multiple markets make available on a consolidated basis. Share figures exclude transactions reported to the FINRA/NYSE
Trade Reporting Facility.
Source: NYSE Euronext, Options Clearing Corporation and Consolidated Tape as reported for equity securities.
NYSE Euronext
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