NYX Nyse Euronext

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 2Q10vs. 2Q09

     

1H10

     

1H09

     

% Δ 1H10vs. 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      

% ∆ 2Q10vs. 2Q09

     

1H10

     

1H09

     

% ∆ 1H10vs. 1H09

Total Revenues         $305       $298       $219       39%       $603       $417       45%

Total Revenues, Less Transaction-Based Expenses1

226 224 169 34% 450 325 38% 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      

% ∆ 2Q10vs. 2Q09

     

1H10

     

1H09

     

% ∆ 1H10vs. 1H09

Total Revenues1         $835       $676       $949       (12%)       $1,511       $1,811       (17%)

Total Revenues, Less Transaction-Based Expenses2

321 312 359 (11%) 633 726 (13%) 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      

% ∆ 2Q10vs. 2Q09

     

1H10

     

1H09

     

% ∆ 1H10vs. 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      

% ∆ 2Q10vs. 2Q09

     

1H10

     

1H09

     

% ∆ 1H10vs. 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 Tradingand Listings

   

InformationServices andTechnologySolutions

   

Corporate andEliminations

    Consolidated Derivatives    

Cash Tradingand Listings

   

InformationServicesandTechnologySolutions

   

Corporate andEliminations

    Consolidated                                 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 Tradingand Listings

   

InformationServices andTechnologySolutions

   

Corporate andEliminations

    Consolidated Derivatives    

Cash Tradingand Listings

   

InformationServices andTechnologySolutions

   

Corporate andEliminations

    Consolidated   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 30,2010

December31, 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% Chg

  2Q10 1Q10 2Q09

2Q10 vs. 2Q09% Chg

  YTD 2010 YTD 2009 % 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.