NYX Nyse Euronext

German exchange operator Deutsche Boerse AG (DB1.XE) warned late Tuesday its full-year consolidated earnings for 2009 would be burdened by around EUR200 million in writedowns because of a slowdown in its U.S. equity options business, the International Securities Exchange.

The warning comes on the back of analysts' concerns about lower trading volumes at Deutsche Boerse and before it publishes full-year earnings for 2009 on Feb. 16.

Despite the writedowns Deutsche Boerse said it plans to keep its dividend for 2009 unchanged from the year before at EUR2.10.

The surprise writedowns follow generally strong performance by the ISE since its acquisition by Deutsche Boerse in 2007, a move which was aimed at extending the exchange's reach beyond its German home market.

At the time, the ISE claimed about 28% of all U.S. options trade, and has generally maintained its second-place position behind the Chicago Board Options Exchange.

But the ISE last year saw its market share slip amid growth by rival platforms operated by NYSE Euronext (NYX) and Nasdaq OMX Group Inc. (NDAQ) Market share fell from a peak of 29.6% in July to 20.3% in December, the lowest level since December 2002. Pricing competition and a move by NYSE Euronext to bring in a group of banks and trading firms as equity owners in its NYSE Amex options exchange has also put pressure on the ISE.

A total of around EUR420 million in non-cash writedowns tied to ISE and its U.S. equities business were offset in part by around EUR180 million in deferred tax liabilities. The charge applies to intangible assets other than goodwill, Deutsche Boerse said.

Deutsche Boerse's derivatives unit Eurex moved to acquire the ISE in 2007 for $2.8 billion in cash, a deal aimed at creating the largest transatlantic derivatives marketplace.

Deutsche Boerse shares closed 2.27% higher, or EUR1.22 Tuesday at EUR54.98, leading the German DAX which closed 0.98% higher.

-By William Launder, Dow Jones Newswires; +49 69 29 725 515; william.launder@dowjones.com

(Jacob Bunge in Chicago contributed to this article.)

Grafico Azioni NYSE Group (NYSE:NYX)
Storico
Da Giu 2024 a Lug 2024

Grafico Azioni NYSE Group (NYSE:NYX)
Storico
Da Lug 2023 a Lug 2024