NYSE Euronext, the transatlantic stock and derivatives exchange group, on Tuesday said quarterly earnings more than tripled as it benefited from continuing market volatility and record volumes at its Liffe futures unit.

The results underscore how the group is managing to offset a recently declining market share in US cash equities trading through last year’s deal to acquire pan-European exchange Euronext, which previously owned Liffe, the London-based derivatives market.

The exchange business has gone through a sustained period of consolidation in recent years, with NYSE Euronext among those exchanges actively trying to bolster their derivatives franchises through acquisitions.

NYSE and pan-European bourse operator Euronext merged last year in a deal designed to reduce trading costs, broaden new product offerings and expand listings.

For the quarter ended March, NYSE Euronext reported a 238 per cent rise in net income to $230m, or 87 cents per diluted share, compared with $68m, or 43 cents, for the same period a year ago.

D Börse buoyed

Deutsche Börse, Europe’s biggest exchange by market value, said first-quarter profit rose 58 per cent, buoyed by securities trading, reports Bloomberg from London.
Net income rose to €304.2m ($472.6m) from €192.3m in the first quarter a year ago, the exchange said. Earnings before interest, tax and amortisation rose to €425.8m from €300.3m.
The operator of the Frankfurt stock exchange is part owner of the Eurex AG derivatives market and owns International Securities Exchange Holdings .

Duncan Niederauer, NYSE Euronext’s chief executive, said: “We are very pleased with the growth in our transaction-related revenues, which underscores our leadership position in an increasingly competitive environment.”

The results came as NYSE Euronext said it had picked Euro CCP and LCH.Clearnet as clearing and settlement service providers for SmartPool, a pan-European electronic “block trading” platform created by NYSE Euronext, HSBC and BNP Paribas.

SmartPool is a new so-called multilateral trading facility set for launch after the summer.

NYSE Euronext said that in the quarter trading volume on Liffe was up 29 per cent – a record. NYSE Arca Options, the group’s options exchange, reported a 70 per cent rise in volume.

Derivatives trading – made up of trading in contracts offered on Liffe and NYSE Arca – accounts for 25 per cent of the group’s revenues and is the fastest-growing of its six main revenue streams.

David Easthope, senior analyst with Celent, the US consulting firm, said: “While cash markets growth was strong, what is quite remarkable is the derivatives volume growth. With exchange volumes growing at a healthy clip, eyes will be on the promised synergies from mergers and acquisitions, including the newly acquired American Stock Exchange.”

During the first quarter, NYSE Euronext said that it planned to buy the Amex, and agreed to buy a 5 per cent stake in India’s Multi Commodity Exchange.