Nyse Euronext has reported a 28% drop in third quarter profit amid steep declines in revenue from cash equity trading in Europe and the US. The exchange operator has also sold off a significant equity stake in its futures business Nyse Liffe US to a group of five leading banks and liquidity providers.Nyse Euronext global cash markets net revenue was $135 million in the third quarter of 2009, down 46% from the third quarter of 2008 and down 11% from the second quarter of 2009.
The exchange attributed the fall-off to declines in global cash trading volumes and net pricing reductions as it fought to maintain market share and fight off a raft of new competitors.
Coincidental with the results statement, Nyse Euronext also announced the signing of a binding agreement with Citadel Securities, Getco, Goldman Sachs, Morgan Stanley and UBS to sell a "significant" equity interest in underperforming futures business Nyse Liffe US.
Nyse Euronext will remain the largest shareholder in the entity and will continue to manage the day-to-day operations of the business, which will operate under the supervision of a separate board of directors, chaired by Jim McNulty, and chief executive officer Thomas Callahan.
The transaction is expected to close shortly subject to regulatory review. Financial details were not disclosed.
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