NYSE Euronext Announces Third Quarter 2012 Financial Results

  NYSE Euronext Announces Third Quarter 2012 Financial Results      -- Third Quarter GAAP Diluted EPS of $0.44 vs. $0.76 in Prior Year --    -- Non-GAAP Diluted EPS of $0.44 Excluding Merger Expenses, Exit Costs and                             Discrete Tax Items --                -- Project 14 Accelerating and Gaining Traction --            -- Global Leader in IPOs Year-to-Date; Pipeline Strong --    -- Refinanced Portion of Outstanding Debt, Annualized Cost Savings of $24                         Million Anticipated in 2014 --           -- A Total of 16 Million Shares Repurchased Year-to-Date --  Financial and Operating Highlights^1, 2    *Diluted EPS of $0.44, down from $0.71 in 3Q11, which benefited from     extreme market volatility   *Net revenue of $559 million, down 21%, including $20 million negative FX     impact   *Fixed operating expenses of $388 million, down 7% on a constant dollar /     portfolio basis   *Operating income of $171 million, down 41%, including $10 million negative     FX impact   *Repurchased 4.7 million shares at average price of $25.46; 15.9 million     shares year-to-date   *Board declares fourth quarter 2012 cash dividend of $0.30 per share  ^1 All comparisons versus 3Q11 unless otherwise stated. Excludes merger expenses, exit costs and discrete tax items.  ^2 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.  Business Wire  NEW YORK -- November 06, 2012  NYSE Euronext (NYX) today reported net income of $108 million, or $0.44 per diluted share, for the third quarter of 2012, compared to net income of $200 million, or $0.76 per diluted share, for the third quarter of 2011. Results for the third quarter of 2012 and 2011 include $18 million and $29 million, respectively, of pre-tax merger expenses and exit costs. In the third quarter of 2012, our GAAP effective tax rate included a discrete net deferred tax benefit of approximately $12 million, principally related to the enacted reduction in the corporate tax rate from 25% to 23% in the United Kingdom. Excluding merger expenses, exit costs and discrete tax items, net income in the third quarter of 2012 was $108 million, or $0.44 per diluted share, compared to $186 million, or $0.71 per diluted share, in the third quarter of 2011.  “In the third quarter, we continued to execute against our strategy and deliver on our multi-year growth commitments, known as Project 14, which we believe will drive a step-up in the underlying earnings power of the company in the coming years, even if trading volumes remain lackluster,” said Duncan L. Niederauer, CEO, NYSE Euronext. “We are investing in future growth drivers like NYSE Clearing and this quarter we launched new futures contracts based on MSCI global indices and the Russell Europe SMID 300 Index. Additionally, we are moving into adjacencies in the governance and compliance segment with our acquisition of Corpedia. Turning to the efficiency stream of Project 14, we are diligently pulling costs out of the platform with expenses running solidly below prior year levels. Lastly, we are continuing to return capital to our investors through dividends and share repurchases.”  The table below summarizes the financial results^1 for the third quarter of 2012:                                                                                                                           % Δ                               % Δ                                                      3Q12        Year-to-Date          YTD                                                                                        '12 ($ in millions,                                      vs.                               vs. except EPS)         3Q12    2Q12    3Q11     3Q11        2012     2011     YTD                                                                                        '11 Total Revenues ^2     $902      $986      $1,258     (28%)       $2,840     $3,498     (19%) Total Revenues, Less                  559       602       704        (21%)       1,762      2,044      (14%) Transaction-Based Expenses ^3 Other Operating       388       396       416        (7%)        1,189      1,251      (5%) Expenses ^4 Operating Income      $171      $206      $288       (41%)       $573       $793       (28%) ^4 Net Income ^4         $108      $128      $186       (42%)       $357       $522       (32%) Diluted Earnings    $0.44   $0.51   $0.71    (38%)       $1.41    $1.98    (29%) Per Share ^4 Operating Margin      31%       34%       41%        (10         33%        39%        (6                                                      ppts)                             ppts) Adjusted EBITDA     42%     45%     51%      (9          44%      49%      (5 Margin                                               ppts)                             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, exit costs, disposal activities and discrete tax items.   “Our results for the quarter reflect the traction that we are gaining with our efficiency efforts. Against our Project 14 goals, we have taken $82 million out of our expense base year-to-date, which exceeds our 2012 objective of saving 25% of the total $250 million cost reduction plan. This puts us ahead of our full-year 2012 cost guidance,” commented Michael S. Geltzeiler, Group Executive Vice President and CFO, NYSE Euronext. “Turning to the capital front, we restructured our investment in Qatar, avoiding $80 million in future payments, we repurchased 16 million shares year-to-date and we refinanced a portion of our outstanding debt at very attractive levels. The latter will result in annual run-rate interest expense savings of approximately $15 million and $24 million in 2013 and 2014, respectively. All of these actions are repositioning the company for an anticipated return to growth.”  THIRD QUARTER 2012 CONSOLIDATED RESULTS  Total revenues, less transaction-based expenses, which include Section 31 fees, liquidity payments and routing and clearing fees (net revenue), were $559 million in the third quarter of 2012, down $145 million, or 21% compared to the third quarter of 2011 and included a $20 million negative impact from foreign currency fluctuations. The $125 million decrease in net revenue, on a constant currency basis, compared to the third quarter of 2011 was primarily driven by lower average daily volumes (“ADV”), mostly attributable to the derivatives business. Third quarter of 2011 financial results benefited from extreme market volatility in Europe and the U.S. driven by the European sovereign debt crisis and the U.S. debt ceiling issue. Market volatility since the third quarter of 2011 has significantly declined, reaching multi-year lows in August of 2012.  Other operating expenses, excluding merger expenses and exit costs, were $388 million in the third quarter of 2012, down $28 million, or 7% compared to the third quarter of 2011. Excluding the impact of new business initiatives and a $10 million positive impact attributable to foreign currency fluctuations, other operating expenses were down $29 million, or 7%, compared to the third quarter of 2011. Year-to-date on the same basis, other expenses are running $65 million, or 5% below prior year levels.  Year-to-date, Project 14 savings are $82 million, which represents 33% of the total $250 million expected to be saved by the end of 2014, running well above the 25%, or $63 million, expected for the full-year 2012.  Operating income, excluding merger expenses and exit costs, was $171 million, down $117 million, or 41% compared to the third quarter of 2011 and included a $10 million negative impact attributable to foreign currency fluctuations.  Adjusted EBITDA, excluding merger expenses and exit costs, was $235 million, down $125 million, or 35% compared to the third quarter of 2011. Adjusted EBITDA margin was 42% in the third quarter of 2012, compared to 51% in the third quarter of 2011.  Loss from associates is primarily related to New York Portfolio Clearing. Net (income) loss attributable to noncontrolling interest consists primarily of net income attributable to NYSE Amex Options which was partially offset by the net loss attributable to NYSE Liffe U.S.  Based on current projections for profits and changes to UK tax rates, we now expect our non-GAAP effective tax rate to be 24% for the full-year 2012. In the third quarter of 2012, the 21% effective tax rate reflects a tax rate true-up to adjust the year-to-date tax rate to 24% from 25%, which added $0.02 to third quarter 2012 diluted earnings per share.  The weighted average diluted shares outstanding in the third quarter of 2012 was 247 million, down from 263 million in third quarter of 2011. During the third quarter of 2012, a total of 4.7 million shares were repurchased at an average price of $25.46 per share and year-to-date a total of 15.9 million shares have been repurchased at an average price of $26.66. The current repurchase authorization had $128 million remaining as of September 30, 2012.  At September 30, 2012, total debt was $2.5 billion. Cash, cash equivalents and short term financial investments (including $24 million related to Section 31 fees collected from market participants and due to the SEC) were $0.4 billion and net debt was $2.1 billion at the end of the third quarter of 2012. The ratio of debt-to-EBITDA at the end of the third quarter of 2012 was 2.4.  On October 5, 2012 NYSE Euronext closed on the public offering of $850 million 2.00% notes due in October 2017. The proceeds from this offering were used to fund the purchase of $336 million of our outstanding $750 million 4.80% notes due in June 2013 and €80 million of our €1 billion 5.375% notes due in June 2015 and for other general corporate purposes, including the reduction in outstanding commercial paper. The refinancing is expected to save an annualized $15 million and $24 million in interest expense in 2013 and 2014, respectively.  Total capital expenditures were $41 million in the third quarter of 2012 and $125 million year-to-date.  Headcount as of September 30, 2012 of 3,061 was 16 below year-end 2011 levels despite the addition of 99 employees from the acquisition of Corpedia in June of 2012.  The Board of Directors declared a cash dividend of $0.30 per share for the fourth quarter of 2012. The fourth quarter 2012 dividend is payable on December 28, 2012 to shareholders of record as of the close of business on December 14, 2012. The anticipated ex-date will be December 12, 2012.  THIRD QUARTER 2012 SEGMENT RESULTS  Below is a summary of business segment results:              Derivatives                            Cash Trading & Listings                Info. Svcs. & Tech. Solutions ($ in         Net         Operating   Adjusted     Net         Operating   Adjusted               Operating   Adjusted millions)              Revenue^1   Income^2    EBITDA^2     Revenue^1   Income^2    EBITDA^2     Revenue   Income^2    EBITDA^2 3Q12          $164          $68           $78          $282          $104          $145         $113        $23           $36 2Q12          $182          $85           $95          $300          $127          $170         $119        $27           $40 3Q11          $226        $129        $140         $353        $155        $202         $125      $31         $45 YTD 2012      $522          $232          $262         $886          $350          $476         $353        $78           $118 YTD 2011      $675        $387        $427         $1,008      $408        $547         $363      $95         $128  ^1 Net revenue defined as total revenues less transaction-based expenses including Section 31 fees, liquidity payments and routing & clearing fees. ^2 Excludes merger expenses and exit costs.  DERIVATIVES  Derivatives net revenue of $164 million in the third quarter of 2012 decreased $62 million, or 27% compared to the third quarter of 2011 and included a $4 million negative impact from foreign currency fluctuations. The $58 million decrease in derivatives net revenue, on a constant currency basis, compared to the third quarter of 2011, was driven by lower average daily trading volumes. While market conditions continue to be challenging for derivatives trading, the third quarter of 2012 was a strong quarter for new product development and growth initiatives which will benefit the company in the future:    *NYSE Euronext and Bank of China Limited recently signed a Memorandum of     Understanding to work together and consider mutually beneficial business     ventures. The agreement will strengthen NYSE Euronext’s banking     relationship with Bank of China and NYSE Euronext will provide guidance to     Bank of China which will establish itself as a General Clearing Member of     the London market of NYSE Liffe. With the increased importance of the     renminbi (RMB) in the capital markets, both parties will work together to     develop and launch RMB denominated products and explore the potential for     RMB to be used as collateral in NYSE Euronext’s new clearinghouse in     London.   *New York Portfolio Clearing, LLC (“NYPC”), a joint venture of The     Depository Trust & Clearing Corporation and NYSE Euronext and a market     leader in derivatives clearing, announced that J.P. Morgan Securities LLC     and BNP Paribas Securities Corp. will join the expanding group of firms     enjoying the capital efficiencies generated by the NYPC model.   *Swapnote product ADV in the third quarter of 2012 increased 26% compared     to the third quarter of 2011 and increased 30% compared to the second     quarter of 2012. The growth in ADV was primarily driven by a new market     making program designed to expand liquidity in the product. Additionally,     ADV in Medium Gilt futures increased 62% compared to the third quarter of     2011 and increased 108% versus the second quarter of 2012. The increase     was driven by the re-launch of the Designated Market Making Program for     Short and Medium term Gilt futures.   *NYSE Liffe launched 3 year mid-curve options on Euribor and Sterling in     July 2012. The Euribor 3 year mid-curve option is the fastest growing new     product for NYSE Liffe on record with open interest approaching 385,000     contracts and ADV of 23,000 contracts in first few months of trading.   *NYSE Liffe was the first European exchange to launch futures contracts on     the Russell Europe SMID 300 Index on its market leading wholesale     derivatives service, Bclear, on October 1, 2012. The Russell Europe SMID     300 Index contains the 300 most rapidly tradable constituents from the     small- and mid-cap opportunity set in developed European markets.   *NYSE Liffe U.S. announced the addition of three new futures contracts     based on MSCI global indices. The addition of mini MSCI Canada, mini MSCI     Emerging Markets Latin America and mini MSCI World index futures offers     customers more flexibility and control in implementing their desired     exposure to key global markets and provides accessibility to a wider range     of in-demand global economies.  CASH TRADING AND LISTINGS  Cash Trading and Listings net revenue of $282 million in the third quarter of 2012 decreased $71 million, or 20% compared to the third quarter of 2011 and included an $11 million negative impact from foreign currency fluctuations. The $60 million decrease in net revenue, on a constant currency basis, compared to the third quarter of 2011 was primarily driven by lower average daily trading volumes.    *European cash ADV of 1.3 million transactions in the third quarter of 2012     decreased 31% from 1.9 million transactions in the third quarter of 2011     and decreased 23% from second quarter of 2012 levels. European cash market     share (value traded) in NYSE Euronext’s four core markets was 68% in the     third quarter of 2012, up from 66% in the third quarter of 2011 and up     from 66% in the second quarter of 2012.   *NYSE Euronext announced the launch of a Retail Matching Facility (RMF) on     its European regulated cash markets, a new service which enables Retail     Liquidity Providers to offer price improvement to retail investors. This     initiative, which meets all pre- and post-trade MiFID requirements, will     be available in mid- January 2013.   *In the U.S., cash trading ADV in the third quarter of 2012 decreased 39%     to 1.6 billion shares from 2.6 billion shares in the third quarter of 2011     and decreased 13% from the second quarter of 2012. Tape A matched market     share was 32% in the third quarter of 2012, down from 36% in the third     quarter of 2011 and down slightly from second quarter of 2012. Trading off     exchange, as reported by the Trade Reporting Facility (“TRF”) has     increased to 32% of overall consolidated average daily volume in the third     quarter of 2012 from 28% in the third quarter of 2011.   *Through the third quarter of 2012, NYSE Euronext was ranked #1 in IPOs     both globally and in the United States. NYSE Euronext raised $27.0 billion     in total global proceeds on 86 Initial Public Offerings (IPOs). In the     U.S., NYSE Euronext listed 57% of all IPOs, bringing 57 IPOs to the U.S.     market. NYSE Euronext has steadily captured share in     technology-basedIPOs. NYSE Euronext listed 50% of the technology IPOs in     the U.S., including the recent IPOs of ServiceNow, Inc., Palo Alto     Networks Inc., and Trulia Inc. NYSE Euronext also leads the market for     Non-U.S. issuers, notably listing the $3.6 billion initial public offering     of Banco Santander (Mexico), the second largest U.S. IPO of 2012.   *NYSE Euronext welcomed two additional transfers in the third quarter of     2012, U.S. Physical Therapy Inc. and On Assignment, Inc. Through the third     quarter of 2012, 10 companies transferred to the NYSE with three     departures from the NYSE and one from NYSE MKT. Since 2010, a total of 40     companies have transferred to NYSE and 14 have transferred to another U.S.     exchange.   *Corpedia and Corporate Board Member, both NYSE Euronext companies,     announced a partnership to provide corporate directors, chief compliance     officers, general counsel, and executives with a robust, integrated suite     of governance oversight solutions. The suite features director education     resources and online training in key risk areas, comparative tools, and     research and Continuing Legal Education programs to help directors and     officers achieve the highest standards of corporate conduct and     compliance.  INFORMATION SERVICES AND TECHNOLOGY SOLUTIONS  Information Services and Technology Solutions revenue was $113 million in the third quarter of 2012, a decrease of $12 million, or 10% compared to the third quarter of 2011 and included a $5 million negative impact from foreign currency fluctuations. Net revenue in the third quarter of 2011 included $5 million in onetime sales to the Tokyo and Warsaw Stock Exchanges. The $2 million decrease in revenue, on a constant currency basis, excluding the onetime sales, compared to the third quarter of 2011, was driven by declines in enterprise software and market solutions revenue. The decline in revenue year-over-year is the result of the challenging environment for financial services technology sales which has delayed client decisions on purchases of software and connectivity services. To drive the business forward, NYSE Technologies appointed Jon Robson as its new Chief Executive Officer. Based in New York, he reports to Dominique Cerutti, President & Deputy CEO, NYSE Euronext. Highlights for the third quarter of 2012 included:    *NYSE Technologies announced a partnership with Russell Investments to     provide technology solutions and server co-location for RussellTick, which     includes real time index data for the $3.9 trillion Russell index series.     Utilizing the existing NYSE Euronext Global Index Feed (GIF) technology,     NYSE Euronext will become the real time distributor of Russell’s real time     product RussellTick in early December 2012.   *NYSE Technologies is currently revamping global data agreements, including     pricing, to better reflect how data is used today. This is anticipated to     result in more data products and more favorable pricing and is expected to     drive market data revenue higher.   *NYSE Technologies announced that in collaboration with Bolsa Mexicana de     Valores (BMV) and Americas Trading Group (ATG) it has built and deployed a     state-of-the-art trading infrastructure complete with global connectivity,     risk management functionality and direct market data distribution for     customers trading in Mexican markets.  The accompanying tables include information integral to assessing the Company’s financial performance.  Analyst/Investor/Media Call: November 6, 2012 at 8:00 a.m. (NY/ET) / 2:00 p.m. (Paris/CET)  A presentation and live audio webcast of the third quarter 2012 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: 800.510.0146 International: 617.614.3449 Passcode: 90239424  Replay Dial-in Information: United States: 888.286.8010 International: 617.801.6888 Passcode: 14297656  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, the BlueNext tax settlement, disposal activities and discrete tax 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 MKT, 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. For more information, please visit: http://www.nyx.com.  Please follow us at:  Exchanges Blog  Facebook  LinkedIn  Twitter  Disclaimer and 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 2011 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                      Nine months ended Sept.                                                               30,                       Sept.        June 30,     Sept. 30,     2012          2011                       30, 2012     2012         2011                                                                                                                                                           Revenues Transaction and       $ 570        $ 649        $ 904         $ 1,828       $ 2,461 clearing fees Market data             85           87           93            263           281 Listing                 112          112          113           334           334 Technology              81           87           92            254           263 services Other revenues         54         51         56          161         159    Total revenues          902          986          1,258         2,840         3,498 Transaction-based expenses: Section 31 fees         74           86           109           226           287 Liquidity payments, routing      269        298        445         852         1,167  and clearing Total revenues, less                   559        602        704         1,762       2,044  transaction-based expenses Other operating expenses Compensation            145          152          160           457           480 Depreciation and        64           66           72            196           212 amortization Systems and             44           44           46            133           143 communications Professional            76           69           77            218           219 services Selling, general and                     59           65           61            185           197 administrative Merger expenses        18         12         29          61          68     and exit costs Total other operating              406        408        445         1,250       1,319  expenses                                                                              Operating income        153          194          259           512           725 Net interest and investment income       (28  )       (28  )       (29   )       (84   )       (88   ) (loss) Loss from               (2   )       (2   )       (2    )       (5    )       (5    ) associates Net loss on disposal                -            (2   )       -             (2    )       - activities Other income           1          3          (1    )      4           -      (loss) Income before           124          165          227           425           632 income taxes Income tax             (12  )      (34  )      (21   )      (91   )      (126  ) provision Net income              112          131          206           334           506 Net (income) loss attributable to        (4   )      (6   )      (6    )      (14   )      2      noncontrolling interest Net income attributable to       $ 108       $ 125       $ 200        $ 320        $ 508    NYSE Euronext                                                                              Basic earnings per share             $ 0.44       $ 0.50       $ 0.76        $ 1.27        $ 1.94 attributable to NYSE Euronext Diluted earnings per share             $ 0.44       $ 0.49       $ 0.76        $ 1.26        $ 1.93 attributable to NYSE Euronext                                                                              Basic weighted average shares          246          252          262           252           262 outstanding Diluted weighted average shares         247        253       263         253        263    outstanding                                                                                                                                                           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                      Nine months ended Sept.                                                               30, Non-GAAP              Sept.        June 30,    Sept. 30,     2012          2011 Reconciliation        30, 2012     2012         2011                                                                              Income (loss) before income         $ 124        $ 165        $ 227         $ 425         $ 632 taxes - GAAP Excluding: Merger expenses         18           12           29            61            68 and exit costs Net loss on disposal               -          2          -           2           -      activities Income before income taxes - as       142          179          256           488           700 adjusted Income tax             (30  )      (45  )      (64   )      (117  )      (180  ) provision Net income - as         112          134          192           371           520 adjusted Net (income) loss attributable to        (4   )      (6   )      (6    )      (14   )      2      noncontrolling interest Net income attributable to       $ 108       $ 128       $ 186        $ 357        $ 522    NYSE Euronext - as adjusted                                                                              Diluted earnings per share             $ 0.44      $ 0.51      $ 0.71       $ 1.41       $ 1.98   attributable to NYSE Euronext                                                                                                                                                                                                                                            NYSE Euronext Segment Results (unaudited) (in millions)                                                                                                                                                                             Three months ended                                                             Three months ended                             September 30, 2012                                                             September 30, 2011                                                          Information                                                                    Information                                             Cash         Services                                                          Cash         Services                                             Trading      and                                                               Trading      and                                             and          Technology      Corporate                                         and          Technology      Corporate                                                                          and                                                                            and                             Derivatives     Listings     Solutions       Eliminations     Consolidated     Derivatives     Listings     Solutions       Eliminations     Consolidated                                                                                                                                                                           Revenues Transaction and             $    198        $  372       $    -          $    -           $    570         $    288        $  616       $    -          $    -           $    904 clearing fees Market data                      11            42             32              -                85               11            49             33              -                93 Listing                          -             112            -               -                112              -             113            -               -                113 Technology                       -             -              81              -                81               -             -              92              -                92 services Other revenues                  11           43            -              -               54              9            47            -              -               56 Total revenues                   220           569            113             -                902              308           825            125             -                1,258 Transaction-based expenses: Section 31 fees                  -             74             -               -                74               -             109            -               -                109 Liquidity payments, routing               56           213           -              -               269             82           363           -              -               445 and clearing Total revenues, less                             164           282            113             -                559              226           353            125             -                704 transaction-based expenses Depreciation and      [a]        10            41             13              -                64               11            47             14              -                72 amortization Merger expenses and exit costs        [b]        13            2              2               1                18               1             6              2               20               29 (M&E) Other operating                 86           137           77             24              324             86           151           80             27              344 expenses Operating income      [c]   $    55         $  102       $    21         $    (25)        $    153         $    128        $  149       $    29         $    (47)        $    259 - GAAP Operating income      [c] excluding M&E         +     $    68         $  104       $    23         $    (24)        $    171         $    129        $  155       $    31         $    (27)        $    288                       [b]                       [c]                       + Adjusted EBITDA       [a]   $    78        $  145      $    36        $    (24)       $    235         $    140       $  202      $    45        $    (27)       $    360                       +                       [b]                                                                                                                                                                           Operating margin                 41%           37%            20%             N/M              31%              57%           44%            25%             N/M              41% excluding M&E Adjusted EBITDA                  48%           51%            32%             N/M              42%              62%           57%            36%             N/M              51% margin                                                                                                                                                                                                                                                                                                                                                        Nine months ended                                                              Nine months ended                             September 30, 2012                                                             September 30, 2011                                                          Information                                                                    Information                                             Cash         Services                                                          Cash         Services                                             Trading      and                                                               Trading      and                                             and          Technology      Corporate                                         and          Technology      Corporate                                                                          and                                                                            and                             Derivatives     Listings     Solutions       Eliminations     Consolidated     Derivatives     Listings     Solutions       Eliminations     Consolidated                                                                                                                                                                           Revenues Transaction and             $    623        $  1,205     $    -          $    -           $    1,828       $    825        $  1,636     $    -          $    -           $    2,461 clearing fees Market data                      33            131            99              -                263              35            147            99              -                281 Listing                          -             334            -               -                334              -             334            -               -                334 Technology                       -             -              254             -                254              -             -              264             (1)              263 services Other revenues                  33           127           -              1               161             31           129           -              (1)             159 Total revenues                   689           1,797          353             1                2,840            891           2,246          363             (2)              3,498 Transaction-based expenses: Section 31 fees                  -             226            -               -                226              -             287            -        #      -                287 Liquidity payments, routing               167          685           -              -               852             216          951           -              -               1,167 and clearing Total revenues, less                             522           886            353             1                1,762            675           1,008          363             (2)              2,044 transaction-based expenses Depreciation and      [a]        30            126            40              -                196              40            139            33              -                212 amortization Merger expenses and exit costs        [b]        21            15             12              13               61               3             11             4               50               68 (M&E) Other operating                 260          410           235            88              993             248          461           235            95              1,039 expenses Operating income      [c]   $    211        $  335       $    66         $    (100)       $    512         $    384        $  397       $    91         $    (147)       $    725 - GAAP Operating income      [c] excluding M&E         +     $    232        $  350       $    78         $    (87)        $    573         $    387        $  408       $    95         $    (97)        $    793                       [b]                       [c]                       + Adjusted EBITDA       [a]   $    262       $  476      $    118       $    (87)       $    769         $    427       $  547      $    128       $    (97)       $    1,005                       +                       [b]                                                                                                                                                                           Operating margin                 44%           40%            22%             N/M              33%              57%           40%            26%             N/M              39% excluding M&E Adjusted EBITDA                  50%           54%            33%             N/M              44%              63%           54%            35%             N/M              49% margin                                                                                                                                                                                                                                                                                                                                                     N/M = Not                   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 meaningful                  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)                                                                     Expense Base Development on a Constant $ / Constant Portfolio Basis                                                     Fixed operating expenses for the three             $  406 months ended September 30, 2012 - GAAP Less: Merger expenses and exit costs                       (18    )                                                    $  388 Excluding the impact of: Currency translation                                  10 New business initiatives                             (11    )   Fixed operating expenses for the three months ended September 30, 2012 - as               $  387         [a] adjusted                                                                     Fixed operating expenses for the three             $  445 months ended September 30, 2011 - GAAP Less: Merger expenses and exit costs                       (29    )                                                    $  416         [b]                                                                     Variance ($)                                       $  (29    )     [a] - [b] =                                                                    [c] Variance (%)                                         -7     %     [c] / [b]                                                                     Fixed operating expenses for the nine months       $  1,250 ended September 30, 2012 - GAAP Less: Merger expenses and exit costs                       (61    )                                                    $  1,189 Excluding the impact of: Currency translation                                  26 New business initiatives                             (29    ) Fixed operating expenses for the nine months       $  1,186       [a] ended September 30, 2012 - as adjusted                                                                     Fixed operating expenses for the nine months       $  1,319 ended September 30, 2011 - GAAP Less: Merger expenses and exit costs                       (68    )                                                    $  1,251       [b]                                                                     Variance ($)                                       $  (65    )     [a] - [b] =                                                                    [c] Variance (%)                                         -5     %     [c] / [b]                                                                                                                                         Expense Base Development Versus Project 14 Cost Savings Plan                                                                     Fixed operating expenses for the nine months       $  1,250 ended September 30, 2012 - GAAP Less: Merger expenses and exit costs                        (61    ) New business initiatives                              (31    ) Currency translation (1)                             11      Fixed operating expenses for the nine months       $  1,169       [a] ended September 30, 2012 - as adjusted                                                                     Fixed operating expenses for the nine months       $  1,319 ended September 30, 2011 - GAAP Less: Merger expenses and exit costs                       (68    ) Fixed operating expenses for the nine months       $  1,251       [b] ended September 30, 2011 - as adjusted                                                                                                                                         Year to Date Project 14 Cost Savings - ($)         $  82          [b]-[a] =                                                                    [c]                                                                     Year to Date Project 14 Cost Savings - (%)           7      %     [c] / [b]                                                                     Project 14 Cost Savings to date as % of              33     % total $250 million plan                                                                                                                                         (1) We measure the Project 14 cost savings utilizing constant currency rates of $1.35 for the Euro and $1.60 for the Pound Sterling.   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)                                                                                                               September 30, 2012     December 31,                                                                   2011                                                                    Assets Current assets: Cash, cash equivalents, and short term     $      341             $   432 financial investments Accounts receivable, net                          477                 497 Deferred income taxes                             71                  108 Other current assets                             160                152 Total current assets                              1,049               1,189                                                                    Property and equipment, net                       944                 963 Goodwill                                          4,139               4,027 Other intangible assets, net                      5,715               5,697 Deferred income taxes                             535                 594 Other assets                                     577                637 Total assets                               $      12,959          $   13,107                                                                    Liabilities and equity Accounts payable and accrued expenses      $      650             $   992 Deferred revenue                                  225                 130 Short term debt                                   866                 39 Deferred income taxes                            3                  23 Total current liabilities                         1,744               1,184                                                                    Long term debt                                    1,616               2,036 Deferred income taxes                             1,898               1,900 Accrued employee benefits                         562                 620 Deferred revenue                                  373                 371 Other liabilities                                25                 63 Total liabilities                                6,218              6,174                                                                    Redeemable noncontrolling interest               281                295                                                                    Equity                                            6,460               6,638                                                                   Total liabilities and equity               $      12,959          $   13,107                                                                                                                                                                                                                                                NYSE Euronext Selected Statistical Data: Volume Summary                                                                                                                                                                                                                         Average Daily Volume                                                 Total Volume                                                              Total Volume                                                   % ∆                        % ∆                                         % ∆                           % ∆ (Unaudited)         3Q12           2Q12           3Q12        3Q11           3Q12        3Q12            2Q12            3Q12        3Q11              3Q12        YTD 2012        YTD 2011        % ∆                                                   vs.                        vs.                                         vs.                           vs.                                                   2Q12                       3Q11                                        2Q12                          3Q11                                                                                                                                                                                                     Number of Trading Days -        65             62                         66                         65              62                          66                          192             193 European Cash Number of Trading Days -        65             63                         66                         65              63                          66                          193             193 European Derivatives Number of Trading Days -        63             63                         64                         63              63                          64                          188             189 U.S. Markets                                                                                                                                                                                                     European Derivatives Products              3,386          4,654        -27.2 %       4,349        -22.1 %       219,866         293,182       -25.0 %       287,064         -23.4 %     729,643         917,115         -20.4 % (contracts in thousands) of which Bclear       829            1,743        -52.5 %       826          0.3   %       53,856          109,827       -51.0 %       54,508          -1.2  %     207,412         237,718         -12.7 % Avg. Net Revenue Per         $ 0.657        $ 0.674        -2.5  %     $ 0.679        -3.2  %     $ 0.657         $ 0.674         -2.5  %     $ 0.679           -3.2  % Contract (ex. Bclear) Avg. Net Revenue Per Contract (ex.       $ 0.657        $ 0.673        -2.4  %     $ 0.666        -1.4  %     $ 0.657         $ 0.673         -2.4  %     $ 0.666           -1.4  % Bclear) - Currency Neutral                                                                                                                                                                                                     Total Interest        1,735          1,953        -11.2 %       2,347        -26.1 %       112,531         123,059       -8.6  %       154,927         -27.4 %     350,918         462,950         -24.2 % Rate Products^1                                                                                                                                                                                                     Short Term Interest Rate         1,587          1,801        -11.9 %       2,198        -27.8 %       102,912         113,479       -9.3  %       145,086         -29.1 %     321,829         435,804         -26.2 % Products Medium and Long Term Interest         148            152          -2.7  %       149          -0.8  %       9,619           9,580         0.4   %       9,841           -2.3  %     29,089          27,146          7.2   % Rate Products                                                                                                                                                                                                     Total Equity          1,551          2,622        -40.9 %       1,923        -19.4 %       100,803         165,188       -39.0 %       126,943         -20.6 %     361,965         438,033         -17.4 % Products^2                                                                                                                                                                                                     Individual            1,100          2,065        -46.7 %       1,250        -12.0 %       71,513          130,086       -45.0 %       82,515          -13.3 %     267,841         323,229         -17.1 % Equity Products Futures               696            1,603        -56.5 %       658          5.9   %       45,265          100,962       -55.2 %       43,421          4.2   %     179,402         205,169         -12.6 % Options               404            462          -12.6 %       592          -31.8 %       26,248          29,124        -9.9  %       39,094          -32.9 %     88,439          118,060         -25.1 % Equity Index          451            557          -19.1 %       673          -33.1 %       29,290          35,102        -16.6 %       44,428          -34.1 %     94,124          114,805         -18.0 % Products                                                                                                                                                                                                     of which Bclear       829            1,743        -52.5 %       826          0.3   %       53,856          109,827       -51.0 %       54,508          -1.2  %     207,412         237,718         -12.7 % Individual            754            1,667        -54.8 %       733          2.8   %       49,014          105,025       -53.3 %       48,400          1.3   %     193,037         221,876         -13.0 % Equity Products Futures               670            1,561        -57.1 %       635          5.6   %       43,560          98,312        -55.7 %       41,901          4.0   %     174,532         201,767         -13.5 % Options               84             107          -21.3 %       98           -14.8 %       5,454           6,713         -18.8 %       6,499           -16.1 %     18,505          20,109          -8.0  % Equity Index          74             76           -2.3  %       93           -19.5 %       4,842           4,801         0.8   %       6,108           -20.7 %     14,375          15,841          -9.3  % Products                                                                                                                                                                                                     Commodity             100            78           28.3  %       79           27.7  %       6,532           4,935         32.4  %       5,193           25.8  %     16,761          16,131          3.9   % Products                                                                                                                                                                                                     U.S. Derivatives Products (contracts in thousands) Avg. Net Revenue Per Contract (ex.       $ 0.144        $ 0.150        -4.0  %     $ 0.154        -6.5  %     $ 0.144         $ 0.150         -4.0  %     $ 0.154           -6.5  % Liffe U.S. volumes)                                                                                                                                                                                                     Equity Options        3,533          3,915        -9.8  %       4,866        -27.4 %       222,578         246,634       -9.8  %       311,430         -28.5 %     725,134         840,169         -13.7 % Contracts^3 Total Consolidated          13,812         14,911       -7.4  %       18,477       -25.2 %       870,150         939,423       -7.4  %       1,182,554       -26.4 %     2,794,081       3,248,325       51.6  % Options Contracts                                                                                                                                                                                                     Share of Total Consolidated          25.6   %       26.3   %                   26.3   %                   25.6    %       26.3    %                   26.3      %                 26.0      %     25.9      %     0.1   % Options Contracts                                                                                                                                                                                                     NYSE Liffe U.S.                                                                                                                                                                                                     Futures and Futures Options       66.4           73.4         -9.5  %       117.8        -43.7 %       4,247.6         4,769.3       -10.9 %       7,774.6         -45.4 %     15,178.2        15,099.8        0.5   % Volume*                                                                                                                                                                                                     European Cash Products              1,318          1,709        -22.8 %       1,907        -30.9 %       85,695          105,934       -19.1 %       125,891         -31.9 %     294,556         338,267         -12.9 % (trades in thousands) Avg. Net Revenue Per         $ 0.537        $ 0.519        3.5   %     $ 0.635        -15.4 %     $ 0.537         $ 0.519         3.5   %     $ 0.635           -15.4 % Transaction Avg. Net Revenue Per Transaction -       $ 0.537        $ 0.506        6.1   %     $ 0.563        -4.6  %     $ 0.537         $ 0.506         6.1   %     $ 0.563           -4.6  % Currency Neutral                                                                                                                                                                                                     Equities              1,272          1,656        -23.2 %       1,832        -30.5 %       82,698          102,668       -19.5 %       120,893         -31.6 %     284,805         325,084         -12.4 % Exchange-Traded       13             14           -12.2 %       25           -49.3 %       819             890           -8.0  %       1,641           -50.1 %     2,650           3,988           -33.6 % Funds Structured            28             33           -15.2 %       46           -39.1 %       1,831           2,059         -11.1 %       3,052           -40.0 %     6,125           8,223           -25.5 % Products Bonds                 5              5            4.7   %       5            15.8  %       348             317           9.7   %       305             14.0  %     976             972             0.4   %                                                                                                                                                                                                     U.S. Cash Products              1,583          1,818        -12.9 %       2,608        -39.3 %       99,758          114,541       -12.9 %       166,914         -40.2 %     325,180         440,850         -26.2 % (shares in millions) Avg. Net Revenue Per 100     $ 0.0401       $ 0.0428       -6.3  %     $ 0.0383       4.7   %     $ 0.0401        $ 0.0428        -6.3  %     $ 0.0383          4.7   % Shares Handled                                                                                                                                                                                                     NYSE Listed (Tape A) Issues ^4                                                                                                                                                                                                     Handled Volume        1,134          1,304        -13.0 %       1,806        -37.2 %       71,463          82,157        -13.0 %       115,591         -38.2 %     232,644         311,061         -25.2 % ^5 Matched Volume        1,078          1,239        -13.0 %       1,717        -37.2 %       67,921          78,081        -13.0 %       109,900         -38.2 %     220,535         294,921         -25.2 % ^6 Total NYSE Listed                3,412          3,885        -12.2 %       4,801        -28.9 %       214,981         244,756       -12.2 %       307,295         -30.0 %     703,537         838,416         -16.1 % Consolidated Volume                                                                                                                                                                                                     Share of Total Consolidated Volume Handled Volume        33.2   %       33.6   %                   37.6   %     -4.4  %       33.2    %       33.6    %                   37.6      %                 33.1      %     37.1      % ^5 Matched Volume        31.6   %       31.9   %                   35.8   %     -4.2  %       31.6    %       31.9    %                   35.8      %                 31.3      %     35.2      % ^6                                                                                                                                                                                                     NYSE Arca, MKT and Regional (Tape B) Listed Issues                                                                                                                                                                                                     Handled Volume        222            279          -20.3 %       469          -52.6 %       14,005          17,582        -20.3 %       30,007          -53.3 %     48,029          72,582          -33.8 % ^5 Matched Volume        202            251          -19.5 %       423          -52.2 %       12,741          15,826        -19.5 %       27,094          -53.0 %     43,238          65,340          -33.8 % ^6 Total NYSE Arca & NYSE MKT Listed                939            1,188        -20.9 %       1,798        -47.8 %       59,184          74,843        -20.9 %       115,086         -48.6 %     203,650         279,949         -27.3 % Consolidated Volume                                                                                                                                                                                                     Share of Total NYSE Arca & NYSE MKT Listed Consolidated Volume Handled Volume        23.7   %       23.5   %                   26.1   %                   23.7    %       23.5    %                   26.1      %                 23.6      %     25.9      % ^5 Matched Volume        21.5   %       21.1   %                   23.5   %                   21.5    %       21.1    %                   23.5      %                 21.2      %     23.3      % ^6                                                                                                                                                                                                     Nasdaq Listed Issues (Tape C)                                                                                                                                                                                                     Handled Volume        227            240          -5.5  %       333          -31.9 %       14,289          15,123        -5.5  %       21,316          -33.0 %     44,507          57,208          -22.2 % ^5 Matched Volume        196            206          -4.7  %       292          -33.0 %       12,342          12,950        -4.7  %       18,719          -34.1 %     38,067          49,214          -22.6 % ^6 Total Nasdaq Listed                1,661          1,802        -7.8  %       2,183        -23.9 %       104,663         113,554       -7.8  %       139,681         -25.1 %     329,548         392,592         -16.1 % Consolidated Volume                                                                                                                                                                                                     Share of Total Nasdaq Listed Consolidated Volume Handled Volume        13.7   %       13.3   %                   15.3   %                   13.7    %       13.3    %                   15.3      %                 13.5      %     14.6      % ^5 Matched Volume        11.8   %       11.4   %                   13.4   %                   11.8    %       11.4    %                   13.4      %                 11.6      %     12.5      % ^6                                                                                                                                                                                                     Exchange-Traded Funds ^5,7                                                                                                                                                                                                     Handled Volume        205            265          -22.7 %       455          -55.0 %       12,903          16,693        -22.7 %       29,119          -55.7 %     45,002          68,122          -33.9 % ^5 Matched Volume        186            238          -21.7 %       410          -54.6 %       11,739          14,995        -21.7 %       26,271          -55.3 %     40,453          61,281          -34.0 % ^6 Total ETF Consolidated          890            1,167        -23.7 %       1,783        -50.1 %       56,048          73,495        -23.7 %       114,109         -50.9 %     196,741         267,573         -26.5 % Volume                                                                                                                                                                                                     Share of Total ETF Consolidated Volume Handled Volume        23.0   %       22.7   %                   25.5   %                   23.0    %       22.7    %                   25.5      %                 22.9      %     25.5      % ^5 Matched Volume        20.9   %       20.4   %                   23.0   %                   20.9    %       20.4    %                   23.0      %                 20.6      %     22.9      % ^6          ^1  Data includes currency products. ^2   Includes trading activities for Bclear, NYSE Liffe's service for Equity      OTC derivatives. ^3   Includes trading in U.S. equity options contracts, not equity-index      options. ^4   Includes all volume executed in NYSE Euronext's U.S. crossing sessions.      Represents the total number of shares of equity securities and ETFs ^5   internally matched on the NYSE Euronext's U.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 the NYSE Euronext's U.S. exchanges. ^7   Data included in previously identified categories. ^*   ADVs calculated with the appropriate number of NYSE Liffe U.S. trading      days.      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.        <*Story too large*       [TRUNCATED]  
Press spacebar to pause and continue. Press esc to stop.