NYSE Euronext - FORM 8-K - EX-99.1 - PRESS RELEASE

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8-K - FORM 8-K - NYSE Euronext	d8k.htm

Exhibit 99.1

LOGO


CONTACT \| Media:			CONTACT \| Investor Relations:
+31.20.550.4488 (Amsterdam), +32.2.509.1392 (Brussels)			+1.212.656.5700 (New York)
+351.217.900.029 (Lisbon), +44.20.7379.2789 (London)			+33.1.49.27.58.60 (Paris)
+1.212.656.2411 (New York), +33.1.49.27.11.33 (Paris)

NYSE Euronext Announces Fourth Quarter and Full-Year 2010 Financial Results

— Fourth Quarter GAAP Diluted EPS of $0.51 vs. $0.66 in the Prior Year Period —

— Diluted EPS of $0.46 vs. $0.58, Excluding Merger Expenses and Exit Costs —

— New York Portfolio Clearing Go-Live Expected Late First Quarter 2011 —

Financial and Operating Highlights^{1, 2}

•

Diluted EPS of $0.46 vs. $0.58, down 21%

•

Net revenue of $613 million vs. $640 million, including $19 million negative currency impact

•

Fixed operating expenses of $425 million vs. $431 million; down 6% on constant dollar/portfolio basis

•

Operating income of $188 million vs. $209 million, including $11 million negative currency impact

•

FY 2010 EBITDA margin of 44% vs. 43% in the prior year period

•

#1 in U.S. for IPOs with 99 for $39.1 billion, including 22 Chinese companies; 14 transfers valued at $41 billion

•

Data centers in Mahwah and Basildon live in 4Q

•

Board declares first quarter 2011 cash dividend of $0.30 per share

¹	All comparisons versus 4Q09 unless otherwise stated. Excludes merger expenses and exit costs.

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.

NEW YORK – Feb. 8, 2011 – NYSE Euronext (NYX) today reported net income of $135 million, or $0.51 per diluted share for the fourth quarter of 2010, compared to net income of $172 million, or $0.66 per diluted share for the fourth quarter of 2009. Results for the fourth quarter of 2010 and fourth quarter of 2009 include $18 million and $43 million, respectively, of pre-tax merger expenses and exit costs as well as the impact of the requisite reversal of discrete tax reserves. Excluding the impact of these items, net income in the fourth quarter of 2010 was $120 million, or $0.46 per diluted share, compared to $151 million, or $0.58 per diluted share, in the fourth quarter of 2009.

“2010 was a year of significant progress for NYSE Euronext in executing on our key strategic priorities and accelerating the transformation of our business,” said Duncan L. Niederauer, CEO, NYSE Euronext. “We made significant investments in key business areas such as our new data centers, New York Portfolio Clearing and our Universal Trading Platform, and in 2011 our focus will be on leveraging these investments to continue to drive success for our customers and shareholders.”

The table below summarizes our financial results¹:


										% D 4Q10									% D FY 10
($ in millions, except EPS)	4Q10			3Q10			4Q09			vs. 4Q09			FY 2010			FY 2009			vs. FY 09
Total Revenues²	$	1,045		$	1,050		$	1,130			(8	%)	$	4,425		$	4,684			(6	%)

Total Revenues, Less Transaction-Based Expenses³		613			599			640			(4	%)		2,511			2,478			1	%
Other Operating Expenses ⁴		425			419			431			(1	%)		1,678			1,676			0	%

Operating Income ⁴	$	188		$	180		$	209			(10	%)	$	833		$	802			4	%
Net Income⁴	$	120		$	121		$	151			(21	%)	$	548		$	533			3	%
Diluted Earnings Per Share⁴	$	0.46		$	0.46		$	0.58			(21	%)	$	2.09		$	2.04			2	%
Operating Margin		31	%		30	%		33	%		(2 ppts	)		33	%		32	%		1 ppts
EBITDA Margin		44	%		42	%		43	%		1 ppts			44	%		43	%		1 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 and net gains from disposal activities.

Michael S. Geltzeiler, Group Executive Vice President and CFO, NYSE Euronext commented, “Despite a challenging trading volume environment in the second half of 2010, we recorded record volumes in our derivatives business for full-year 2010, we stabilized our core cash markets, our listings business showed renewed strength, our technology business is primed for growth in 2011 and we continued to focus on reducing our fixed expense base. For the full-year 2010, fixed

expenses were below the low-end of our full-year guidance range and included significant investments in new business initiatives which generated incremental revenue of approximately $150 million. On a constant dollar, constant portfolio basis, our fixed expenses were down $113 million, or 7% compared to full-year 2009.”

FOURTH QUARTER AND FULL-YEAR 2010 CONSOLIDATED RESULTS

Total revenues, less transaction-based expenses, which include Section 31 fees, liquidity payments and routing and clearing fees (net revenue), was $613 million in the fourth quarter of 2010, down $27 million, or 4% compared to $640 million in the fourth quarter of 2009. The $27 million decrease in net revenue compared to the fourth quarter of 2009 was primarily driven by declines in European Derivatives and U.S. cash average daily trading volumes (ADV) and a $19 million negative impact attributable to foreign currency fluctuations, partially offset by higher technology services revenue in the fourth quarter of 2010. For the full-year 2010, net revenues were $2,511 million, an increase of $33 million, or 1% compared to $2,478 million for full-year 2009. The $33 million increase was driven primarily by the full-year effect of NYSE Liffe Clearing, the acquisition of NYFIX and increased market share on NYSE Amex options, partially offset by reductions in European cash pricing, a $42 million negative impact attributable to foreign currency fluctuations and declines in trading volumes over BlueNext, NYSE Euronext’s environmental trading platform in Europe.

Fixed operating expenses, excluding merger expenses and exit costs, were $425 million, compared to $431 million in the fourth quarter of 2009. Excluding the impact of acquisitions, an $8 million positive impact attributable to foreign currency fluctuations and investment in new businesses, fixed operating expenses were down $25 million, or 6%, compared to fourth quarter 2009. For the full-year 2010, fixed operating expenses were $1,678 million compared to $1,676 million in 2009. Excluding the impact of acquisitions, a $19 million positive impact attributable to foreign currency fluctuations and investment in new businesses, fixed operating expenses were down $113 million, or 7%, compared to full-year 2009.

Operating income, excluding merger expenses and exit costs, was $188 million, down $21 million, or 10% compared to the fourth quarter of 2009 and included an $11 million negative impact attributable to foreign currency fluctuations. For the full-year 2010, operating income was $833 million, compared to $802 million for full-year 2009 and included a $25 million negative impact attributable to foreign currency fluctuations.

Adjusted EBITDA, which excludes merger expenses and exit costs, was $268 million, compared to $275 million in the fourth quarter of 2009. For the full-year 2010, adjusted EBITDA was $1,114 million, compared to $1,068 million for full-year 2009. Adjusted EBITDA margin was 44% in the fourth quarter and full-year 2010, slightly above the 43% recorded in the fourth quarter and full-year 2009.

Non-operating income for the fourth quarter of 2010 includes the impact of the investment in New York Portfolio Clearing (income from associates) and NYSE Liffe U.S. (net loss/income attributable to non-controlling interest) initiatives. Both New York Portfolio Clearing and NYSE Liffe U.S. are currently in a loss position. Non-operating income in the fourth quarter of 2009 included a $0.06 per diluted share positive impact from an LCH.Clearnet special dividend (other income) as well as the impact of the sale of stakes in NYSE Liffe U.S. (net loss/income attributable to non-controlling interest) which resulted in the retroactive sharing of losses with our partners.

The effective tax rate for the fourth quarter and full-year 2010 was approximately 26.5%.

The weighted average diluted shares outstanding in the fourth quarter and full-year 2010 were 262 million shares, up from 261 million shares in the fourth quarter and full-year 2009.

At December 31, 2010, total debt declined $0.3 billion from December 31, 2009 to $2.4 billion and consists of $2.1 billion in long-term debt and $0.3 billion in short-term debt. Cash, cash equivalents, investments and other securities (including $98 million related to Section 31 fees collected from market participants and due to the SEC) was $0.4 billion and net debt was $2.0 billion.

Headcount as of December 31, 2010 was 2,968, down 2% from September 30, 2010 and down 12% from December 31, 2009.

The Board of Directors declared a cash dividend of $0.30 per share for the first quarter of 2011. The first quarter 2011 dividend is payable March 31, 2011 to shareholders of record as of the close of business on March 16, 2011. The anticipated ex-date will be March 14, 2011.

FOURTH QUARTER AND FULL-YEAR 2010 SEGMENT RESULTS

Below is a summary of business segment results:


($ in millions)	Derivatives						Cash Trading & Listings						Info. Svcs. & Tech. Solutions
($ in millions)	Net Revenue¹		Operating Income²		Adjusted EBITDA²		Net Revenue¹		Operating Income²		Adjusted EBITDA²		Net Revenue¹		Operating Income²		Adjusted EBITDA²
4Q10	$	188	$	91	$	108	$	310	$	99	$	153	$	114	$	28	$	37
3Q10	$	188	$	93	$	108	$	298	$	101	$	145	$	113	$	24	$	34
4Q09	$	200	$	101	$	119	$	334	$	118	$	160	$	103	$	19	$	25
FY 2010	$	826	$	454	$	514	$	1,241	$	432	$	618	$	444	$	89	$	124
FY 2009	$	723	$	342	$	416	$	1,386	$	519	$	687	$	363	$	54	$	78

¹	Net revenue defined as total revenue 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 $188 million in the fourth quarter of 2010 decreased $12 million, or 6% compared to the fourth quarter of 2009. The decrease in net revenue was primarily driven by a $7 million negative impact from currency fluctuations and an 8% decline in European derivatives ADV, partially offset by a $4 million, or 10% increase in U.S. options net transaction revenue driven by a 20% increase in U.S. equity options ADV. For the full-year 2010, Derivatives net revenue of $826 million increased $103 million, or 14%, and represented 33% of NYSE Euronext’s total net revenue, up from 29% in 2009. The strong annual performance was driven by record European derivatives ADV, which increased 15%, the full-year effect of NYSE Liffe Clearing and strong U.S. options ADV which increased 39% compared to full-year 2009, partially offset by a $13 million negative impact from currency fluctuations.

•

The Derivatives segment finished 2010 with record trading volumes. Global Derivatives ADV in 2010 was 8.4 million contracts, an increase of 24% compared to 2009 and consisted of ADV of 4.7 million contracts for total notional of €1.2 trillion executed over NYSE Liffe and ADV of 3.7 million contracts executed over NYSE Euronext’s U.S. equity options exchanges.

•

NYSE Euronext’s U.S. equity options exchanges accounted for 25% of total consolidated U.S. equity options trading in the fourth quarter of 2010 and 26% for full-year 2010 compared to 24% in the fourth quarter of 2009 and 20% for full-year 2009.

•

In the fourth quarter of 2010, dividend capture trades as a percentage of total U.S. consolidated equity options ADV increased to approximately 10%, from approximately 6% in the third quarter of 2010. This lower-margin business represents a relatively small percentage of NYSE Euronext’s U.S. equity options business.

•

New York Portfolio Clearing (NYPC), the innovative derivatives clearinghouse that will deliver single-pot margin efficiency between fixed income securities and interest rate futures was granted registration by the Commodity Futures Trading Commission (CFTC) as a U.S. Derivatives Clearing Organization (DCO) pursuant to the Commodity Exchange Act. NYSE Liffe U.S. expects to launch trading in Eurodollar and U.S. Treasury Futures in conjunction with the launch of NYPC late in the first quarter of 2011, pending regulatory approval from the SEC.

CASH TRADING AND LISTINGS

Cash Trading and Listings net revenue was $310 million in the fourth quarter of 2010, a decrease of $24 million, or 7% compared to the fourth quarter of 2009. The decrease in net revenue was primarily driven by a 13% decline in U.S. cash ADV, year-over-year pricing changes in European cash and a $9 million negative impact from foreign currency fluctuations. For the full-year 2010, net revenue of $1,241 million decreased $145 million, or 10%, and represented 49% of NYSE Euronext’s full-year 2010 net revenue, down from 56% in 2009. The decline in net revenue was primarily driven by pricing reductions in European cash in 2009, declines in trading volumes over BlueNext, NYSE Euronext’s environmental trading platform in Europe, declines in U.S. cash ADV and a $21 million negative impact from currency fluctuations.

•

The Cash Trading and Listings segment experienced relative stability in market share and increased momentum in its listing franchise in 2010. European cash market share (value traded) in NYSE Euronext’s four core markets was 73% in the fourth quarter and full-year of 2010, down from 77% in the fourth quarter of 2009 and 78% for full-year 2009. In the U.S., Tape A matched market share was 35% in the fourth quarter and 36% for the full-year 2010 compared to

37% in the fourth quarter of 2009 and 38% for full-year 2009. Adjusting for trading volume executed “off-exchange”, NYSE Euronext’s market share increased in 2010 compared to 2009.

•

A total of 99 IPOs, including a record 22 Chinese companies, listed on NYSE Euronext markets for total proceeds of $39.1 billion in 2010, compared to a total of 44 IPOs for $21.1 billion in 2009.

•

A total of 14 companies for a combined market capitalization of over $41 billion transferred to NYSE in 2010, the largest number since 2003. Transfers included Charles Schwab Corp., Knight Trading Group, Corporate Executive Board, United Continental Holdings, Paragon Shipping, GFI Group and Compass Diversified Holdings.

•

NYSE Euronext garnered nearly 40% of technology-based IPOs in the U.S. in 2010 and the pipeline for 2011 remains strong. Technology-related IPOs in 2010 included Sensata Technologies, MaxLinear, Calix Networks, Higher One Holdings, Fabrinet, RealD, Green Dot and Envestnet.

INFORMATION SERVICES AND TECHNOLOGY SOLUTIONS

Information Services and Technology Solutions revenue was $114 million in the fourth quarter of 2010, an increase of $11 million, or 11% compared to the fourth quarter of 2009. The increase in revenue was primarily driven by an increase in revenue resulting from the launch of the Mahwah and Basildon data-centers, strong enterprise software sales and the impact of the NYFIX acquisition and was partially offset by a $3 million negative impact from currency fluctuations. For the full-year 2010, revenue of $444 million increased $81 million, or 22%, and represented 18% of NYSE Euronext’s total net revenue, up from 15% in 2009. The increase in revenue was driven by the impact of the NYFIX acquisition and increased Exchange Solutions, SFTI and software sales, partially offset by a $7 negative impact from currency fluctuations.

•

The Information Services and Technology Solutions segment achieved its full-year target for revenue from the NYFIX acquisition, signed multi-year managed services agreements with the Tokyo and Warsaw exchanges as well as several mid-tier and global investment banks and experienced increasing momentum in the SFTI sales as well as co-location revenue driven by the launch of NYSE Euronext’s two new state of the art data centers.

•

The Risk Management Gateway product is gaining momentum as regulatory focus on sponsored access increases.

•

NYSE Technologies was selected by Goldman Sachs to build and support its new Multilateral Trading Facility (MTF), SigmaX. The platform will be hosted and managed by NYSE Technologies from NYSE Euronext’s European Liquidity Center in Basildon.

•

The Transactions business continued to expand its Marketplace network, ending the year with over 10,500 direct order channels and approximately 650 buy-side clients.

# # #

The accompanying tables include information integral to assessing the Company’s financial performance.

Analyst/Investor/Media Call: February 8, 2011 at 8:00 a.m. (NY/EDT)/2:00 p.m. (Paris/CET)

A presentation and live audio webcast of the fourth quarter 2010 earnings conference call will be available on the Investor Relations section of NYSE Euronext’s website, http://www.nyseeuronext.com/ir. Those wishing to listen to the live conference via telephone should dial-in at least ten minutes before the call begins. An audio replay of the conference call will be available approximately one hour after the call on the Investor Relations section of NYSE Euronext’s website, http://www.nyseeuronext.com/ir or by dial-in beginning approximately two hours following the conclusion of the live call.

Live Dial-in Information:

United States: 866.700.0133

International: 617.213.8831

Passcode: 78593969

Replay Dial-in Information:

United States: 888.286.8010

International: 617.801.6888

Passcode: 12615423

Non-GAAP Financial Measures

To supplement NYSE Euronext’s consolidated financial statements prepared in accordance with GAAP and to better reflect period-over-period comparisons, NYSE Euronext uses non-GAAP financial measures of performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure, calculated and presented in accordance with GAAP. Non-GAAP financial measures do not replace and are not superior to the presentation of GAAP financial results, but are provided to (i) present the effects of certain merger expenses, exit costs and other special items, and (ii) improve overall understanding of NYSE Euronext’s current financial performance and its prospects for the future. Specifically, NYSE Euronext believes the non-GAAP financial results provide useful information to both management and investors regarding certain additional financial and business trends relating to financial condition and operating results. In addition, management uses these measures for reviewing financial results and evaluating financial performance. The non-GAAP adjustments for all periods presented are based upon information and assumptions available as of the date of this release.

LOGO NYSE Euronext Earnings News Release with Tables and Operating Data

About NYSE Euronext

NYSE Euronext (NYX) is a leading global operator of financial markets and provider of innovative trading technologies. The company’s exchanges in Europe and the United States trade equities, futures, options, fixed-income and exchange-traded products. With approximately 8,000 listed issues (excluding European Structured Products), NYSE Euronext’s equities markets – the New York Stock Exchange, NYSE Euronext, NYSE Amex, NYSE Alternext and NYSE Arca – represent one-third of the world’s equities trading, the most liquidity of any global exchange group. NYSE Euronext also operates NYSE Liffe, one of the leading European derivatives businesses and the world’s second-largest derivatives business by value of trading. The company offers comprehensive commercial technology, connectivity and market data products and services through NYSE Technologies. NYSE Euronext is in the S&P 500 index, and is the only exchange operator in the S&P 100 index and Fortune 500. For more information, please visit: http://www.nyx.com.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning NYSE Euronext’s plans, objectives, expectations and intentions and other statements that are not historical or current facts. Forward-looking statements are based on NYSE Euronext’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause NYSE Euronext’s results to differ materially from current expectations include, but are not limited to: NYSE Euronext’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk and U.S. and global competition, and other factors detailed in NYSE Euronext’s reference document for 2009 (“document de référence”) filed with the French Autorité des Marchés Financiers (Filed on April 22, 2010 under No. D.10-0304), 2009 Annual Report on Form 10-K and other periodic reports filed with the U.S. Securities and Exchange Commission or the French Autorité des Marchés Financiers. In addition, these statements are based on a number of assumptions that are subject to change. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by NYSE Euronext that the projections will prove to be correct. This press release speaks only as of this date. NYSE Euronext disclaims any duty to update the information herein.

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CONTACT: Investor Relations

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NYSE Euronext

Condensed consolidated statements of income (unaudited)

(in millions, except per share data)


	Three months ended December 31,						Year ended December 31,
	2010			2009			2010			2009

Revenues
Transaction and clearing fees	$	713		$	805		$	3,128		$	3,427
Market data		95			98			373			403
Listing		107			106			422			407
Technology services		82			65			318			223
Other revenues		48			56			184			224

Total revenues		1,045			1,130			4,425			4,684
Transaction-based expenses:
Section 31 fees		76			117			315			388
Liquidity payments, routing and clearing		356			373			1,599			1,818

Total revenues, less transaction-based expenses		613			640			2,511			2,478

Other operating expenses
Compensation		134			157			613			649
Depreciation and amortization		80			66			281			266
Systems and communications		55			58			206			225
Professional services		82			60			282			223
Selling, general and administrative		74			90			296			313
Merger expenses and exit costs		18			43			88			516

Total other operating expenses		443			474			1,766			2,192

Operating income		170			166			745			286
Net interest and investment (loss) income		(30	)		(29	)		(108	)		(111	)
Income (loss) from associates		(2	)		1			(6	)		2
Other income		2			9			55			28

Income before income taxes		140			147			686			205
Income tax provision		(9	)		14			(128	)		7

Net income		131			161			558			212
Net loss (income) attributable to noncontrolling interest		4			11			19			7

Net income attributable to NYSE Euronext	$	135		$	172		$	577		$	219


Basic earnings per share attributable to NYSE Euronext	$	0.52		$	0.66		$	2.21		$	0.84
Diluted earnings per share attributable to NYSE Euronext	$	0.51		$	0.66		$	2.20		$	0.84

Basic weighted average shares outstanding		261			260			261			260
Diluted weighted average shares outstanding		262			261			262			261

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 December 31,						Year ended December 31,
Non-GAAP Reconciliation	2010			2009			2010			2009

Income before income taxes - GAAP	$	140		$	147		$	686		$	205
Excluding:
Merger expenses and exit costs		18			43			88			516
Net gain on disposal activities		—			—			(54	)		(4	)

Income before income taxes - as adjusted		158			190			720			717
Income tax provision		(42	)		(50	)		(191	)		(191	)

Net income - as adjusted		116			140			529			526
Net loss (income) attributable to noncontrolling interest		4			11			19			7

Net income attributable to NYSE Euronext - as adjusted	$	120		$	151		$	548		$	533


Diluted earnings per share attributable to NYSE Euronext	$	0.46		$	0.58		$	2.09		$	2.04

NYSE Euronext

Segment Results (unaudited)

(in millions)


		Three months ended December 31, 2010															Three months ended December 31, 2009
		Derivatives			Cash Trading and Listings			Information Services and Technology Solutions			Corporate and Eliminations			Consolidated			Derivatives			Cash Trading and Listings			Information Services and Technology Solutions			Corporate and Eliminations			Consolidated
Revenues
Transaction and clearing fees		$	222		$	491		$	—		$	—		$	713		$	240		$	565		$	—		$	—		$	805
Market data			12			51			32			—			95			11			49			38			—			98
Listing			—			107			—			—			107			—			106			—			—			106
Technology services			—			—			82			—			82			—			—			65			—			65
Other revenues			8			39			—			1			48			9			44			—			3			56

Total revenues			242			688			114			1			1,045			260			764			103			3			1,130
Transaction-based expenses:
Section 31 fees			—			76			—			—			76			—			117			—			—			117
Liquidity payments, routing and clearing			54			302			—			—			356			60			313			—			—			373

Total revenues, less transaction-based expenses			188			310			114			1			613			200			334			103			3			640
Depreciation and amortization	[a]		17			54			9			—			80			18			42			6			—			66
Merger expenses and exit costs (M&E)	[b]		2			15			2			(1	)		18			10			24			9			—			43
Other operating expenses			80			157			77			31			345			81			174			78			32			365

Operating income (loss) - GAAP	[c]	$	89		$	84		$	26		$	(29	)	$	170		$	91		$	94		$	10		$	(29	)	$	166

Operating income excluding M&E	[c] + [b]	$	91		$	99		$	28		$	(30	)	$	188		$	101		$	118		$	19		$	(29	)	$	209

Adjusted EBITDA	[c] + [a] + [b]	$	108		$	153		$	37		$	(30	)	$	268		$	119		$	160		$	25		$	(29	)	$	275


Operating margin excluding M&E			48	%		32	%		25	%		N/M			31	%		51	%		35	%		18	%		N/M			33	%
Adjusted EBITDA margin			57	%		49	%		32	%		N/M			44	%		60	%		48	%		24	%		N/M			43	%

		Year ended December 31, 2010															Year ended December 31, 2009
		Derivatives			Cash Trading and Listings			Information Services and Technology Solutions			Corporate and Eliminations			Consolidated			Derivatives			Cash Trading and Listings			Information Services and Technology Solutions			Corporate and Eliminations			Consolidated
Revenues
Transaction and clearing fees		$	1,005		$	2,123		$	—		$	—		$	3,128		$	845		$	2,582		$	—		$	—		$	3,427
Market data			47			200			126			—			373			42			221			140			—			403
Listing			—			422			—			—			422			—			407			—			—			407
Technology services			—			—			318			—			318			—			—			223			—			223
Other revenues			36			148			—			—			184			31			187			—			6			224

Total revenues			1,088			2,893			444			—			4,425			918			3,397			363			6			4,684
Transaction-based expenses:
Section 31 fees			—			315			—			—			315			—			388			—			—			388
Liquidity payments, routing and clearing			262			1,337			—			—			1,599			195			1,623			—			—			1,818

Total revenues, less transaction-based expenses			826			1,241			444			—			2,511			723			1,386			363			6			2,478
Depreciation and amortization	[a]		60			186			35			—			281			74			168			24			—			266
Merger expenses and exit costs (M&E)	[b]		15			56			17			—			88			382			104			27			3			516
Other operating expenses			312			623			320			142			1,397			307			699			285			119			1,410

Operating income (loss) - GAAP	[c]	$	439		$	376		$	72		$	(142	)	$	745		$	(40	)	$	415		$	27		$	(116	)	$	286

Operating income excluding M&E	[c] + [b]	$	454		$	432		$	89		$	(142	)	$	833		$	342		$	519		$	54		$	(113	)	$	802

Adjusted EBITDA	[c] + [a] + [b]	$	514		$	618		$	124		$	(142	)	$	1,114		$	416		$	687		$	78		$	(113	)	$	1,068


Operating margin excluding M&E			55	%		35	%		20	%		N/M			33	%		47	%		37	%		15	%		N/M			32	%
Adjusted EBITDA margin			62	%		50	%		28	%		N/M			44	%		58	%		50	%		21	%		N/M			43	%

N/M = Not meaningful

NYSE Euronext

Fixed operating expenses (unaudited)

(in millions)


Fixed operating expenses for the three months ended December 31, 2010 - GAAP	$	443
Less:
Merger expenses and exit costs		(18	)

	$	425
Excluding the impact of:
Currency translation		8
Acquisitions and dispositions, net		(21	)*
New business initiatives		(2	)
Duplicative datacenter and integration		(4	)

Fixed operating expenses for the three months ended December 31, 2010 - as adjusted	$	406		[a	]


Fixed operating expenses for the three months ended December 31, 2009 - GAAP	$	474
Less:
Merger expenses and exit costs		(43	)

Fixed operating expenses for the three months ended December 31, 2009 - as adjusted	$	431		[b	]

Variance ($)	$	(25	)	[a	] - [b] = [c]

Variance (%)		-6	%	[c	] / [b]

Fixed operating expenses for the year ended December 31, 2010 - GAAP	$	1,766
Less:
Merger expenses and exit costs		(88	)

	$	1,678

Excluding the impact of:
Currency translation		19
Acquisitions and dispositions, net		(54	)**
New business initiatives		(35	)***
Duplicative datacenter and integration		(45	)


Fixed operating expenses for the year ended December 31, 2010 - as adjusted	$	1,563		[a	]


Fixed operating expenses for the year ended December 31, 2009 - GAAP	$	2,192
Less:
Merger expenses and exit costs		(516	)

Fixed operating expenses for the year ended December 31, 2009 - as adjusted	$	1,676		[b	]

Variance ($)	$	(113	)	[a	] - [b] = [c]

Variance (%)		-7	%	[c	] / [b]

*	Includes the contribution of NYFIX and Corporate Board Member.

**	Includes the contribution of NYFIX and Corporate Board Member, net of the disposition of Hugin.

***	Includes primarily the contribution of NYSE Liffe Clearing.

NYSE Euronext

Condensed consolidated statements of financial condition (unaudited)

(in millions)


	December 31,
	2010		2009
Assets
Current assets:
Cash, cash equivalents, investment and other securities	$	379	$	490
Accounts receivable, net		526		660
Deferred income taxes		81		100
Other current assets		149		270

Total current assets		1,135		1,520

Property and equipment, net		1,021		986
Goodwill		4,050		4,210
Other intangible assets, net		5,837		6,184
Deferred income taxes		593		680
Investment in associates and other assets		663		802

Total assets	$	13,299	$	14,382


Liabilities and equity
Accounts payable and accrued expenses	$	823	$	1,352
Deferred revenue		184		163
Short term debt		366		616
Deferred income taxes		2		18

Total current liabilities		1,375		2,149

Long term debt		2,074		2,166
Deferred income taxes		2,007		2,090
Accrued employee benefits		499		504
Deferred revenue		366		362
Other liabilities		134		176

Total liabilities		6,455		7,447

Equity		6,844		6,935

Total liabilities and equity	$	13,299	$	14,382

NYSE Euronext

Selected Statistical Data:

Volume Summary


	Average Daily Volume									Total Volume									Average Daily Volume									Total Volume
(Unaudited)	Q4 ‘10			Q4 ‘09			%D			Q4 ‘10			Q4 ‘09			%D			FY 2010			FY 2009			%D			FY 2010			FY 2009			%D

Number of Trading Days - European Markets		66			65						66			65						258			256						258			256

Number of Trading Days - U.S. Markets		64			64						64			64						252			252						252			252

European Derivatives Products (contracts in thousands)		3,737			4,061			-8.0	%		246,658			263,904			-6.5	%		4,739			4,124			14.9	%		1,222,557			1,056,011			15.8	%
of which Bclear		861			867			-0.7	%		56,831			56,386			0.8	%		1,321			1,020			29.6	%		340,840			260,950			30.6	%
Avg. Net Rate Per Contract (ex. Bclear)	$	0.674		$	0.694			-2.9	%	$	0.674		$	0.694			-2.9	%	$	0.661		$	0.652			1.4	%	$	0.661		$	0.652			1.4	%
Avg. Net Rate Per Contract (ex. Bclear) - Currency Neutral	$	0.674		$	0.673			0.1	%	$	0.674		$	0.673			0.1	%

Total Interest Rate Products¹		1,817			2,040			-10.9	%		119,948			132,576			-9.5	%		2,278			2,022			12.6	%		587,652			517,700			13.5	%

Short Term Interest Rate Products		1,696			1,936			-12.4	%		111,949			125,813			-11.0	%		2,160			1,922			12.4	%		557,330			492,024			13.3	%
Medium and Long Term Interest Rate Products		121			104			16.5	%		8,000			6,763			18.3	%		118			100			17.2	%		30,322			25,676			18.1	%

Total Equity Products²		1,851			1,972			-6.1	%		122,159			128,174			-4.7	%		2,396			2,055			16.6	%		618,226			526,170			17.5	%

Individual Equity Products		1,341			1,381			-2.9	%		88,517			89,786			-1.4	%		1,801			1,445			24.6	%		464,563			369,915			25.6	%
Futures		702			630			11.5	%		46,353			40,946			13.2	%		1,121			771			45.4	%		289,334			199,045			45.4	%
Options		639			751			-15.0	%		42,164			48,839			-13.7	%		679			662			2.6	%		175,229			170,870			2.6	%
Equity Index Products		510			591			-13.7	%		33,642			38,388			-12.4	%		596			610			-2.4	%		153,663			156,255			-1.7	%

of which Bclear		861			867			-0.7	%		56,831			56,386			0.8	%		1,321			1,020			29.6	%		340,840			260,950			30.6	%
Individual Equity Products		780			732			6.5	%		51,473			47,592			8.2	%		1,227			887			38.4	%		316,542			226,972			39.5	%
Futures		699			629			11.0	%		46,108			40,894			12.7	%		1,117			766			45.8	%		288,207			197,709			45.8	%
Options		81			103			-21.1	%		5,365			6,698			-19.9	%		110			113			-3.2	%		28,335			29,264			-3.2	%
Equity Index Products		81			135			-40.0	%		5,358			8,794			-39.1	%		94			133			-29.0	%		24,298			33,978			-28.5	%

Commodity Products		69			49			42.1	%		4,551			3,154			44.3	%		65			47			36.3	%		16,679			12,141			37.4	%

U.S. Derivatives Products - Equity Options ³(contracts in thousands)

Options Contracts		3,715			3,096			20.0	%		237,774			198,151			20.0	%		3,668			2,641			38.9	%		924,379			665,560			38.9	%
Avg. Net Rate Per Contract	$	0.168		$	0.182			-7.7	%	$	0.168		$	0.182			-7.7	%	$	0.171		$	0.199			-14.1	%	$	0.171		$	0.199			-14.1	%
Total Consolidated Options Contracts		15,132			12,862			17.6	%		968,433			823,183			17.6	%		14,317			13,360			7.2	%		3,607,981			3,366,731			7.2	%

Share of Total Consolidated Options Contracts		24.6	%		24.1	%					24.6	%		24.1	%					25.6	%		19.8	%					25.6	%		19.8	%

NYSE Liffe U.S.

Futures and Futures Options Volume		14.9			21.1			-29.5	%		956.7			1,357.9			-29.5	%		16.2			17.7			-8.8	%		4,079.3			4,471.4			-8.8	%

European Cash Products (trades in thousands)		1,400			1,329			5.3	%		92,390			86,423			6.9	%		1,462			1,368			6.8	%		377,122			350,282			7.7	%
Avg. Net Revenue Per Transaction	$	0.714		$	0.879			-18.8	%	$	0.714		$	0.879			-18.8	%	$	0.703		$	0.948			-25.8	%	$	0.703		$	0.948			-25.8	%
Avg. Net Revenue Per Transaction - Currency Neutral	$	0.714		$	0.808			-11.6	%	$	0.714		$	0.808			-11.6	%

Equities		1,341			1,273			5.3	%		88,522			82,768			7.0	%		1,403			1,310			7.1	%		361,870			335,405			7.9	%
Exchange-Traded Funds		17			15			11.0	%		1,108			983			12.7	%		18			14			22.5	%		4,540			3,677			23.5	%
Structured Products		36			35			2.8	%		2,387			2,286			4.4	%		36			38			-6.0	%		9,231			9,745			-5.3	%
Bonds		6			6			-4.7	%		373			386			-3.3	%		6			6			-1.0	%		1,481			1,455			1.8	%

U.S. Cash Products (shares in millions)		2,233			2,570			-13.1	%		142,924			164,455			-13.1	%		2,596			3,281			-20.9	%		654,149			826,739			-20.9	%
Avg. Net Fee Per 100 Shares Handled	$	0.0326		$	0.0359			-9.2	%	$	0.0326		$	0.0359			-9.2	%	$	0.0313		$	0.0284			10.2	%	$	0.0313		$	0.0284			10.2	%

NYSE Listed (Tape A) Issues ⁴

Handled Volume ⁵		1,621			1,896			-14.5	%		103,764			121,316			-14.5	%		1,883			2,398			-21.5	%		474,539			604,231			-21.5	%
Matched Volume ⁶		1,536			1,748			-12.1	%		98,325			111,881			-12.1	%		1,769			2,183			-19.0	%		445,700			550,000			-19.0	%
Total NYSE Listed Consolidated Volume		4,335			4,774			-9.2	%		277,427			305,536			-9.2	%		4,871			5,686			-14.3	%		1,227,390			1,432,761			-14.3	%

Share of Total Consolidated Volume
Handled Volume ⁵		37.4	%		39.7	%		-2.3	%		37.4	%		39.7	%		-2.3	%		38.7	%		42.2	%		-3.5	%		38.7	%		42.2	%		-3.5	%
Matched Volume ⁶		35.4	%		36.6	%		-1.2	%		35.4	%		36.6	%		-1.2	%		36.3	%		38.4	%		-2.1	%		36.3	%		38.4	%		-2.1	%

NYSE Arca & Amex (Tape B) Listed Issues

Handled Volume ⁵		325			365			-10.9	%		20,825			23,362			-10.9	%		385			514			-25.0	%		97,069			129,457			-25.0	%
Matched Volume ⁶		294			320			-8.0	%		18,847			20,494			-8.0	%		346			450			-23.0	%		87,252			113,278			-23.0	%
Total NYSE Arca & Amex Listed Consolidated Volume		1,221			1,431			-14.7	%		78,122			91,569			-14.7	%		1,454			1,888			-22.9	%		366,527			475,653			-22.9	%

Share of Total NYSE Arca & NYSE Amex Listed Consolidated Volume
Handled Volume ⁵		26.7	%		25.5	%		1.2	%		26.7	%		25.5	%		1.2	%		26.5	%		27.2	%		-0.7	%		26.5	%		27.2	%		-0.7	%
Matched Volume ⁶		24.1	%		22.4	%		1.7	%		24.1	%		22.4	%		1.7	%		23.8	%		23.8	%		0.0	%		23.8	%		23.8	%		0.0	%

Nasdaq Listed Issues (Tape C)

Handled Volume ⁵		286			309			-7.3	%		18,335			19,777			-7.3	%		328			369			-11.3	%		82,541			93,050			-11.3	%
Matched Volume ⁶		246			251			-2.0	%		15,735			16,055			-2.0	%		277			301			-8.1	%		69,756			75,887			-8.1	%
Total Nasdaq Listed Consolidated Volume		1,893			2,051			-7.7	%		121,123			131,265			-7.7	%		2,192			2,236			-2.0	%		552,422			563,411			-2.0	%

Share of Total Nasdaq Listed Consolidated Volume
Handled Volume ⁵		15.1	%		15.1	%		0.0	%		15.1	%		15.1	%		0.0	%		14.9	%		16.5	%		-1.6	%		14.9	%		16.5	%		-1.6	%
Matched Volume ⁶		13.0	%		12.2	%		0.8	%		13.0	%		12.2	%		0.8	%		12.6	%		13.5	%		-0.9	%		12.6	%		13.5	%		-0.9	%

Exchange-Traded Funds ^5,7

Handled Volume ⁵		305			343			-11.1	%		19,502			21,934			-11.1	%		369			502			-26.4	%		93,109			126,431			-26.4	%
Matched Volume ⁶		276			302			-8.6	%		17,681			19,348			-8.6	%		333			440			-24.4	%		83,854			110,970			-24.4	%
Total ETF Consolidated Volume		1,157			1,388			-16.6	%		74,056			88,835			-16.6	%		1,426			1,896			-24.7	%		359,458			477,683			-24.7	%

Share of Total ETF Consolidated Volume
Handled Volume ⁵		26.3	%		24.7	%		1.6	%		26.3	%		24.7	%		1.6	%		25.9	%		26.5	%		-0.6	%		25.9	%		26.5	%		-0.6	%
Matched Volume ⁶		23.9	%		21.8	%		2.1	%		23.9	%		21.8	%		2.1	%		23.3	%		23.2	%		0.1	%		23.3	%		23.2	%		0.1	%

¹	Data includes currency products.

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

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

⁴	Includes all volume executed in NYSE Group crossing sessions.

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.

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

⁷	Data included in previously identified categories.

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

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

NYSE Euronext

Selected Statistical Data:

Other Operating Statistics


	Three Months Ended									Full Year
(Unaudited)	December 31, 2010			September 30, 2010			December 31, 2009			2010			2009

NYSE Euronext Listed Issuers

NYSE Listed Issuers

Issuers listed on U.S. Markets¹		2,940			2,928			2,946			2,940			2,939
Number of new issuer listings¹		62			31			107			361			286
Capital raised in connection with new listings ($millions)²	$	21,303		$	3,650		$	13,310		$	31,447		$	18,997

Euronext Listed Issuers

Issuers listed on Euronext¹		980			995			1,035			980			1,035
Number of new issuer listings³		18			21			16			78			42
Capital raised in connection with new listings ($millions)²	$	31		$	58		$	2,841		$	812		$	3,154

NYSE Euronext Market Data

NYSE Market Data⁴

Share of Tape A revenues (%)		49.0	%		50.3	%		45.1	%		47.8	%		46.5	%
Share of Tape B revenues (%)		32.1	%		33.1	%		32.7	%		33.2	%		33.1	%
Share of Tape C revenues (%)		21.0	%		21.8	%		17.7	%		20.0	%		19.4	%
Professional subscribers (Tape A)		377,481			381,658			387,627			377,481			387,627

Euronext Market Data

Number of terminals		238,539			239,098			240,201			238,539			240,201

NYSE Euronext Operating Expenses

NYSE Euronext employee headcount

NYSE Euronext headcount		2,968			3,030			3,367			2,968			3,367

NYSE Euronext Financial Statistics

NYSE Euronext foreign exchange rate

Average €/US$ exchange rate	$	1.359		$	1.292		$	1.476		$	1.327		$	1.394
Average £/US$ exchange rate	$	1.581		$	1.550		$	1.632		$	1.546		$	1.566

Figures for NYSE listed issuers include listed operating companies, special-purpose acquisition companies and closed-end funds listed on the NYSE and NYSE Amex and do not include NYSE Arca or structured products listed on the NYSE. There were 1,126 ETFs and 3 operating companies exclusively listed on NYSE Arca as of December 31, 2010. There were 465 corporate structured products listed on the NYSE as of December 31, 2010.

Figures for new issuer listings include NYSE new listings (including new operating companies, special-purpose acquisition companies and closed-end funds listing on NYSE) and new ETP listings on NYSE Arca (NYSE Amex is excluded). Figures for Euronext present the operating companies were listed on Euronext and do not include NYSE Alternext, Free Market, closed-end funds, ETFs and structured product (warrants and certificates). As of December 31, 2010, 155 companies were listed on NYSE Alternext, 273 on Free Market and 561 ETFs were listed on NextTrack.

Euronext figures show capital raised in millions of dollars by operating companies listed on Euronext, NYSE Alternext and Free Market and do not include closed-end funds, ETFs and structured products (warrants and certificates). NYSE figures show capital raised in millions of dollars by operating companies listed on NYSE and NYSE Arca and do not include closed-end funds, ETFs and structured products.

³	Euronext figures include operating companies listed on Euronext, NYSE Alternext and Free Market and do not include closed-end funds, ETFs and structured products (warrants and certificates).

⁴

“Tape A” represents NYSE listed securities, “Tape B” represents NYSE Arca and NYSE Amex listed securities, and “Tape C” represents Nasdaq listed securities. Per Regulation NMS, as of April 1, 2007, share of revenues is derived through a formula based on 25% share of trading, 25% share of value traded, and 50% share of quoting, as reported to the consolidated tape. Prior to April 1, 2007, share of revenues for Tape A and B was derived based on number of trades reported to the consolidated tape, and share of revenue for Tape C was derived based on an average of share of trades and share of volume reported to the consolidated tape. The consolidated tape refers to the collection and dissemination of market data that multiple markets make available on a consolidated basis. Share figures exclude transactions reported to the FINRA/NYSE Trade Reporting Facility.

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

NYSE Euronext - FORM 8-K - EX-99.1 - PRESS RELEASE - February 8, 2011

Attached files

NYSE Euronext Reports