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Nyse Euronext profits slide; sells off stake in US futures business

30 October 2009  |  4925 views  |  1 stock quote

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.

Comments: (1)

A Finextra member
A Finextra member | 31 October, 2009, 15:28

The impact of MiFID was always going to be most felt by the Stock Exchanges and they must quickly find other revenue streams beyond their existing. They are in prime position to develop related services although the obvious responce will be to mop a few MTFs 

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