NYSE Euronext, operator of the New York Stock Exchange, bourses in Paris, Lisbon, Brussels and Amsterdam and London- based Liffe, Europe’s second-largest derivatives market, is focusing on its standalone strategy with shareholders after a year’s work on the merger with Deutsche Boerse.
The exchange has said it plans to spend $85 million moving 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. It will shift clearing for derivatives traded in Amsterdam, Brussels, Lisbon and Paris to the U.K. capital in the first quarter of 2014. The company previously said it would build two clearinghouses: one in London and one in Paris.
Last week, Deutsche Boerse pledged to keep costs under control as it takes a break from entering into “big” mergers. Deutsche Boerse said first-quarter net income dropped 31 percent to 146.2 million euros ($194 million) as trading volumes faltered.
Nasdaq OMX Group Inc., the second-largest U.S. equity exchange operator, posted first-quarter earnings that missed analyst estimates amid lower trading revenue. CME Group Inc., the world’s biggest futures market, reported a 42 percent drop in profit from a year earlier. Daily futures and options volume in the quarter declined 11 percent to average 12.3 million contracts.
--Editors: Chris Nagi, Andrew Rummer