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Euronext N.V.

Earnings Release Jan 7, 2011

3839_iss_2011-01-07_04307c5a-185e-41b1-9467-bcd6b7ed3ca4.pdf

Earnings Release

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NYSE Euronext Announces Trading Volumes for December 2010

Global Derivatives Averaged 6.7 Million Contracts per Day in December, Down 6% vs. Prior Year; European Cash Trading Volumes Up 13%, U.S. Cash Down 14%

January 7, 2011 – NYSE Euronext (NYX) today announced trading volumes for its global derivatives and cash equities exchanges for December 20101 . Global derivatives average daily volume ("ADV") of 6.7 million contracts traded per day in December 2010 decreased 6.2% versus the prior year. The decrease in global derivatives ADV versus prior year levels was driven primarily by a 17.7% decrease in European derivatives, partially offset by an 8.7% increase in U.S. equity options ADV. Cash equities ADV in December 2010 was mixed, with European cash ADV increasing 12.9% and U.S. cash trading volumes decreasing 13.5% from December 2009 levels.

Highlights

  • NYSE Euronext global derivatives ADV in December 2010 of 6.7 million contracts decreased 6.2% compared to December 2009 and decreased 19.1% from November 2010 levels.
  • NYSE Euronext European derivatives products ADV in December 2010 of 3.3 million contracts decreased 17.7% compared to December 2009 and decreased 24.5% from November 2010 levels. Total European fixed income products ADV in December 2010 of 1.5 million contracts decreased 19.1% compared to December 2009 and decreased 26.6% from November 2010. Total equity products ADV of 1.8 million contracts in December 2010 decreased 17.8% compared to December 2009 and decreased 23.2% from November 2010. Total commodities products ADV of 64,000 contracts in December 2010 increased 41.4% compared to December 2009.
  • NYSE Euronext U.S. equity options (NYSE Arca and NYSE Amex) ADV of 3.4 million contracts in December 2010 increased 8.7% compared to December 2009 levels, but decreased 13.0% from November 2010. NYSE Euronext's U.S. options exchanges accounted for 23.1% of total U.S. consolidated equity options trading in December 2010, down from 24.9% in December 2009 and down from 24.7% recorded in November 2010. In December 2010, dividend capture trades as a percentage of total U.S. consolidated equity options ADV jumped to approximately 15%, from approximately 7% in November 2010. This lower-margin business represents a relatively small percentage of NYSE Euronext's U.S. equity options business.
  • NYSE Euronext European cash products ADV of 1.2 million transactions in December 2010 increased 12.9% compared to December 2009, but decreased 20.3% from November 2010.

1 All NYSE Euronext derivatives transactions count buy and sell orders together as a single transaction. NYSE Euronext European equities transactions count each buy and sell order as separate transactions, NYSE Euronext U.S. equities transactions count buy and sell orders together as a single transaction.

  • NYSE Euronext U.S. cash products (NYSE, NYSE Arca and NYSE Amex) handled ADV of 2.0 billion shares in December 2010 decreased 13.5% compared to December 2009 and decreased 14.2% compared to November 2010. NYSE Euronext's Tape A matched market share in December 2010 was 35.0%, down from 36.5% in December 2009 and down from 36.1% in November 2010.
  • There were a total of 23 trading days in Europe and 22 trading days in the U.S. in December 2010, compared to 22 trading days in Europe and the U.S. in December 2009.
  • The preliminary average net revenue per transaction type (as defined below) for each of the primary trading venues in the fourth quarter of 2010 is included below:
3Q10 Actual 4Q10 Preliminary
European Derivatives (ex. Bclear)1 \$0.670 \$0.67
U.S. Equity Options2 \$0.171 \$0.17
European Cash3 \$0.655 \$0.71
U.S. Cash4 \$0.0313 \$0.032

1 Average net revenue per contract, excluding Bclear.

2 Average net revenue per contract.

3 Average net revenue per transaction.

4 Average net revenue per 100 shares handled.

Derivatives Trading

European Derivatives

  • NYSE Euronext European derivatives products ADV in December 2010 was 3.3 million futures and options contracts, a decrease of 17.7% from December 2009 and a decrease of 24.5% from November 2010. The 3.3 million in futures and options contracts ADV in December 2010 consisted of 2.4 million contracts executed through our full-service LIFFE CONNECT trading platform and 0.9 million contracts, or 27.3%, executed through Bclear, NYSE Liffe's trade administration and clearing service for OTC products. In the fourth quarter of 2010, European derivatives products ADV of 3.7 million contracts was 8.0% below prior year levels. The 3.7 million in futures and options contracts ADV in the fourth quarter of 2010 consisted of 2.9 million contracts executed through LIFFE CONNECT trading platform and 0.9 million contracts, or 23.0%, executed through Bclear.
  • For the full-year 2010, European derivatives products ADV of 4.7 million contracts was 14.9% above prior year levels. The 4.7 million in futures and options contracts ADV for full-year 2010 consisted of 3.4 million contracts executed through the LIFFE CONNECT trading platform and 1.3 million contracts, or 27.9%, executed through Bclear.
  • Total fixed income products ADV of 1.5 million contracts in December 2010 decreased 19.1% from December 2009 and decreased 26.6% from November 2010. In the fourth quarter of 2010, total fixed income products ADV of 1.8 million contracts was 10.9% below prior year levels. For the full-year 2010, total fixed income products ADV of 2.3 million contracts was 12.6% above prior year levels.
  • Total equity products (including Bclear) ADV of 1.8 million contracts in December 2010 decreased 17.8% compared to December 2009 and decreased 23.2% from November 2010. The 1.8 million contracts in equity products ADV consisted of 1.3 million contracts in individual equity products ADV and 0.5 million contracts in equity index products ADV. The 1.3 million contracts in individual equity products ADV consisted of 0.7

million in futures contracts, which represented a 16.7% decrease compared to December 2009 and 0.6 million in options contracts, which represented a 23.7% decrease compared to December 2009. The average net rate per contract for individual equity futures contracts is significantly lower than other products traded on NYSE Liffe. In the fourth quarter of 2010, total equity products ADV of 1.9 million contracts was 6.1% below prior year levels. For the full-year 2010, total equity products ADV of 2.4 million contracts was 16.6% above prior year levels.

• Total commodities products ADV of 64,000 contracts in December 2010 increased 41.4% compared to December 2009. In the fourth quarter of 2010, total commodities product ADV of 69,000 contracts was 42.1% above prior year levels. For the full-year 2010, total commodities product ADV of 65,000 contracts was 36.3% above prior year levels.

U.S. Derivatives

  • NYSE Euronext U.S. equity options (NYSE Arca and NYSE Amex) ADV of 3.4 million contracts in December 2010 increased 8.7% compared to December 2009, but decreased 13.0% compared to November 2010. In the fourth quarter of 2010, U.S. equity options ADV of 3.7 million contracts was 20.0% above prior year levels.
  • For the full-year 2010, U.S. equity options ADV of 3.7 million contracts was 38.9% above prior year levels.
  • Total U.S. consolidated equity options ADV increased 17.1% to 14.6 million contracts in December 2010 compared to December 2009, but decreased 7.0% compared to November 2010. In the fourth quarter of 2010, U.S. consolidated equity options ADV of 15.1 million contracts was 17.6% above prior year levels. For the full-year 2010, U.S. consolidated equity options ADV of 14.3 million contracts was 7.2% above prior year levels.
  • NYSE Euronext's U.S. options exchanges accounted for 23.1% of the total U.S. consolidated equity options trading in December 2010, down from 24.9% in December 2009 and down from 24.7% in November 2010. In December 2010, dividend capture trades as a percentage of total U.S. consolidated equity options ADV jumped to approximately 15%, from approximately 7% in November 2010. This lower-margin business represents a relatively small percentage of NYSE Euronext's U.S. equity options business.
  • NYSE Euronext U.S. futures and futures options (NYSE Liffe U.S.) ADV in December 2010 was approximately 13,000 contracts, compared to 19,500 contracts in December 2009. In the fourth quarter of 2010, U.S. futures and futures options ADV of 14,900 contracts was 29.5% below prior year levels. For the full-year 2010, U.S. futures and futures options ADV was 16,200 contracts, a decrease of 8.8% compared to the prior year.

Cash Trading

European Cash

  • NYSE Euronext European cash products ADV of 1.2 million transactions in December 2010 increased 12.9% compared to December 2009, but decreased 20.3% compared to November 2010. In the fourth quarter of 2010, European cash products ADV of 1.4 million transactions was 5.3% above prior year levels.
  • For the full-year 2010, European cash products ADV of 1.5 million transactions was 6.8% above prior year levels.

U.S. Cash

  • NYSE Euronext U.S. cash products handled ADV in December 2010 decreased 13.5% to 2.0 billion shares compared to December 2009 and decreased 14.2% from November 2010. In the fourth quarter of 2010, U.S. cash products handled ADV was 2.2 billion shares, down 13.1% from prior year levels.
  • For the full-year 2010, U.S. cash products handled ADV was 2.6 billion shares, down 20.9% from prior year levels.
  • NYSE Euronext's Tape A matched market share in December 2010 was 35.0%, down from 36.5% in December 2009 and down from 36.1% in November 2010.
  • Designated Market Maker participation in NYSE-listed stocks in December 2010 was 7.9%, compared to 9.1% in November 2010 and 9.6% in October 2010. Supplemental Liquidity Provider participation in NYSE-listed stocks in December 2010 was 13.7%, compared to 14.6% in November 2010 and 15.4% in October 2010.

Exchange Traded Products

• NYSE Euronext U.S. matched exchange-traded products ADV (included in volumes for Tape B and Tape C) of 214 million shares in December 2010 decreased 14.4% compared to December 2009 and decreased 32.1% compared to November 2010. In the fourth quarter of 2010, NYSE Euronext U.S. matched exchange-traded products ADV of 276 million shares was 8.6% below prior year levels. For the full-year 2010, NYSE Euronext U.S. matched exchange-traded products ADV of 333 million shares was 24.4% below prior year levels.

Other Metrics

  • The average EUR/USD exchange rate for the fourth quarter of 2010 of \$1.36 represented an increase of 5.2% from the third quarter of 2010 and a decrease of 7.9% compared to the fourth quarter of 2009.
  • The average GBP/USD exchange rate for the fourth quarter of 2010 of \$1.58 represented an increase of 2.0% from the third quarter of 2010 and a decrease of 3.2% compared to the fourth quarter of 2009.

Please click here for the Monthly Transaction Activity Data Table.

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, fixedincome 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-fourth 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 August 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 August 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.

Average Daily Volume Total Volume Average Daily Volume Total Volume
(Unaudited; contracts in thousands) Dec-10 Dec-09 % Chg Dec-10 Dec-09 % Chg YTD 2010 % Chg vs.
YTD 2009
YTD 2010 % Chg vs.
YTD 2009
Number of Trading Days - European Markets
Number of Trading Days - U.S. Markets
23
22
22
22
23
22
22
22
258
252
258
252
European Derivatives Products 3,302 4,014 -17.7% 75,957 88,311 -14.0% 4,739 14.9% 1,222,557 15.8%
of which Bclear 903 1,102 -18.1% 20,759 24,252 -14.4% 1,321 29.6% 340,840 30.6%
Total Fixed Income Products 1,473 1,821 -19.1% 33,877 40,055 -15.4% 2,278 12.6% 587,652 13.5%
Short Term Interest Rate Products
Medium and Long Term Interest Rate Products 1
1,396
77
77 1,743 -19.9%
-0.7%
32,108
1,769
1,703 38,352 -16.3%
3.8%
2,160
118
12.4%
17.2%
557,330
30,322
13.3%
18.1%
Total Equity Products 2 1,766 2,148 -17.8% 40,616 47,266 -14.1% 2,396 16.6% 618,226 17.5%
Individual Equity Products 1,292 1,614 -19.9% 29,725 35,502 -16.3% 1,801 24.6% 464,563 25.6%
Futures
Options
734
558
882 -16.7%
732 -23.7%
16,883
12,841
19,397 -13.0%
16,105 -20.3%
1,121
679
44.2%
1.8%
289,334
175,229
45.4%
2.6%
Equity Index Products 474 535 -11.4% 10,892 11,763 -7.4% 596 -2.4% 153,663 -1.7%
of which Bclear 903 1,102 -18.1% 20,759 24,252 -14.4% 1,321 29.6% 340,840 30.6%
Individual Equity Products
Futures
809
733
970 -16.6%
880 -16.7%
18,617
16,867
21,351 -12.8%
19,362 -12.9%
1,227
1,117
38.4%
44.6%
316,542
288,207
39.5%
45.8%
Options 76 90 -15.8% 1,750 1,989 -12.0% 110 -3.9% 28,335 -3.2%
Equity Index Products 93 132 -29.4% 2,142 2,901 -26.2% 94 -29.0% 24,298 -28.5%
Commodity Products 64 45 41.4% 1,464 990 47.8% 65 36.3% 16,679 37.4%
U.S. Derivatives Products
Equity Options 3
NYSE Euronext Options Contracts
Total Consolidated Options Contracts
3,360
14,567
3,092
12,435
8.7%
17.1%
73,926
320,466 273,562
68,020 8.7%
17.1%
3,668
14,317
38.9%
7.2%
924,379
3,607,981
38.9%
7.2%
NYSE Group Share of Total 23.1% 24.9% 23.1% 24.9% 25.6% 5.8% 25.6% 5.8%
NYSE Liffe U.S.
Futures and Futures Options Volume 13.0 19.5 -33.1% 286 428 -33.1% 16.2 -8.8% 4,079.3 -8.8%
European Cash Products (trades in thousands) 1,228 1,087 12.9% 28,235 23,916 18.1% 1,462 6.8% 377,122 7.7%
Equities 1,177 1,041 13.1% 27,079 22,903 18.2% 1,403 7.1% 361,870 7.9%
Exchange-Traded Funds
Structured Products
15
30
28 12 19.3%
6.7%
334
692
267 24.8%
621 11.5%
18
36
22.5%
-6.0%
4,540
9,231
23.5%
-5.3%
Bonds 6 6 -0.3% 130 125 4.2% 6 1.0% 1,481 1.8%
U.S. Cash Products (shares in millions) 5 2,007 2,319 -13.5% 44,148 51,011 -13.5% 2,596 -20.9% 654,149 -20.9%
NYSE Listed (Tape A) Issues 4
Handled Volume 5 1,496 1,747 -14.4% 32,908 38,434 -14.4% 1,883 -21.5% 474,539 -21.5%
Matched Volume 6
Total NYSE Listed Consolidated Volume
1,419
4,050
1,621
4,443
-12.5%
-8.8%
31,224
89,092
35,669
97,737
-12.5%
-8.8%
1,769
4,871
-19.0%
-14.3%
445,700
1,227,390
-19.0%
-14.3%
Share of Total Consolidated Volume
Handled Volume 5 36.9% 39.3% -2.4% 36.9% 39.3% -2.4% 38.7% -3.5% 38.7% -3.5%
Matched Volume 6 35.0% 36.5% -1.5% 35.0% 36.5% -1.5% 36.3% -2.1% 36.3% -2.1%
NYSE Arca & Amex (Tape B) Listed Issues
Handled Volume 5 266 308 -13.7% 5,855 6,786 -13.7% 385 -25.0% 97,069 -25.0%
Matched Volume 6
Total NYSE Arca & Amex Listed Consolidated Volume
240
1,045
271
1,191
-11.4%
-12.2%
5,273
22,998
5,954
26,208
-11.4%
-12.2%
346
1,454
-23.0%
-22.9%
87,252
366,527
-23.0%
-22.9%
Share of Total Consolidated Volume
Handled Volume 5 25.5% 25.9% -0.4% 25.5% 25.9% -0.4% 26.5% -0.7% 26.5% -0.7%
Matched Volume 6 22.9% 22.7% 0.2% 22.9% 22.7% 0.2% 23.8% 0.0% 23.8% 0.0%
Nasdaq Listed (Tape C) Issues
Handled Volume 5 245 263 -7.0% 5,386 5,791 -7.0% 328 -11.3% 82,541 -11.3%
Matched Volume 6
Total Nasdaq Listed Consolidated Volume
211
1,688
215
1,830
-2.0%
-7.7%
4,636
37,140
4,731
40,256
-2.0%
-7.7%
277
2,192
-8.1%
-2.0%
69,756
552,422
-8.1%
-2.0%
Share of Total Consolidated Volume
Handled Volume 5 14.5% 14.4% 0.1% 14.5% 14.4% 0.1% 14.9% -1.6% 14.9% -1.6%
Matched Volume 6 12.5% 11.8% 0.7% 12.5% 11.8% 0.7% 12.6% -0.9% 12.6% -0.9%
Exchange-Traded Funds 5,7
Handled Volume 5 237 282 -16.1% 5,209 6,207 -16.1% 369 -26.4% 93,109 -26.4%
Matched Volume 6
Total ETF Consolidated Volume
214
948
250
1,121
-14.4%
-15.5%
4,710
20,852
5,499
24,670
-14.4%
-15.5%
333
1,426
-24.4%
-24.7%
83,854
359,458
-24.4%
-24.7%
Share of Total Consolidated Volume
Handled Volume 5
25.0% 25.2% -0.2% 25.0% 25.2% -0.2% 25.9% -0.6% 25.9% -0.6%
Matched Volume 6 22.6% 22.3% 0.3% 22.6% 22.3% 0.3% 23.3% 0.1% 23.3% 0.1%

7 Data included in previously identified categories.

Source: NYSE Euronext, Options Clearing Corporation and Consolidated Tape as reported for equity securities.

3 Includes trading in U.S. equity options contracts, not equity-index options.

All trading activity is single-counted, except European cash trading which is double counted to include both buys and sells.

5 Represents the total number of shares of equity securities and ETFs internally matched on the NYSE Group's exchanges or routed to and executed at an external market center. NYSE Arca routing includes odd-lots.

4 Includes all volume executed in NYSE Group crossing sessions.

6 Represents the total number of shares of equity securities and ETFs executed on the NYSE Group's exchanges.

1 Data includes currency products.

2 Includes Bclear trading Includes all trading activities for Bclear, NYSE Liffe's clearing service for wholesale derivatives.

NYSE Euronext Monthly Volume Summary

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