NYSE Euronext Liffe Chief Jones to Leave After Five Years

Garry Jones, head of global derivatives at NYSE Euronext (NYX) and chief executive officer of Liffe, is leaving the exchange after five years.

Jones, based in London, joined the company in 2007 from ICAP Plc (IAP), where he led its European electronic-broking business and was previously at BrokerTec Europe, a fixed-income trading system owned by investment banks. He has spent around 30 years in the financial industry, including roles at Daiwa Securities, BNP Paribas SA (BNP) and Bankers Trust. He has an MA from Oxford University and an MBA from Stanford Business School.

At the helm of Liffe, Europe’s second-largest derivatives exchange, Jones led NYSE’s most-profitable business. The world’s largest stock exchange, which operates bourses in Paris, Lisbon, Brussels, Amsterdam and the New York Stock Exchange, is examining its strategy after European regulators blocked its merger with Deutsche Boerse AG (DB1) after more than a year of work.

“The departure of Mr. Jones is quite surprising,” said Peter Lenardos, an exchange analyst at RBC Capital Markets. “NYSE Euronext will suffer revenue decline this year, and is combating this by cutting costs and buying back shares. Until we get an explanation on why he departed and how this impacts the company’s strategy, this is unwelcome news.”

Merger Costs

On April 30, NYSE Euronext fell the most in six months after reporting a 44 percent decline in first-quarter profit, as expenses related to its failed merger with Deutsche Boerse combined with a slowdown in trading.

NYSE is “eliminating” Jones’s role “as part of an organizational realignment of its customer facing product and sales organizations,” the company said in a statement today. As a result, Jones “has decided to leave the Company effective at the end of June.”

NYSE executives meeting with shareholders on April 2 pledged $250 million in annual savings by the end of 2014 and said a stock buyback will be completed this year. NYSE also said “Project 14,” a program aimed at generating more savings, will generate about $90 million from technology and “organizational efficiency.” The firm is buying back $550 million in shares.

The New York-based exchange has said it plans to spend $85 million to move clearing for London derivatives trades to its own clearinghouse, while retaining the services of LCH.Clearnet Group Ltd. for cash-equities transactions. NYSE Liffe Clearing, a central counterparty to all trades on the London-based Liffe futures market, will be operational by the summer of 2013.

To contact the reporter on this story: Nandini Sukumar in London at nsukumar@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

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