Liffe`s results critical to NYSE Euronext`s reporting net income up by 214% (Free)
Liffe reported a new yearly record during 2007, which proved vital in NYSE Euronext reported net income, which rose 214%. NYSE Euronext reported that net income totalled $643m, surpassing the $438m recorded during 2006.
The performance of the exchanges derivatives business, Liffe, was a significant factor behind the impressive results. Liffe reported that a total of 949m contracts were traded during the year. The level of trading represented a new exchange yearly trading record, as trading activity surpassed the levels recorded in 2006 by 30%.
By offering customers the highest quality and broadest array of global products and services, NYSE Euronext produced record financial results in 2007, said Duncan Niederauer, exchange CEO. We reached new levels in trading volume, message traffic and global IPO proceeds, underscoring the value of our strong technology, compelling business model and unparalleled global presence.
Speaking at the announcement of the exchanges results, Niederauer promised group growth through both organic growth and via acquisitions, highlighting recent acquisitions of American Stock Exchange and Wombat Financial Software as examples.
We have a clear vision of the future and are focused on delivering the promised synergies to our shareholders. We will grow organically and through acquisitions that fit strategically and create value for our shareholders, as evidenced by our recently announced acquisitions of the American Stock Exchange and Wombat Financial Software, he added. Nederauer added that the excahnges recent announcement, that it would bring technology back in-house would also promote growth. Additionally, our strategic decision to in-source our European trading and information technology operations through the AEMS transaction, which was announced in December, will give us control over all of our core technology platforms and greatly enhance our global exchange technology business.
Continuing on from its strong results, Liffe set a new record volumes level in January. Liffe, had its busiest January ever as 103m futures and options contracts were traded, representing an average daily volume of 4.7m contracts, up 61.1% on the same month in 2007.
During the time of financial market volatility, interest rate products and equity derivatives profited, as traders sought to hedge positions held. Interest rate derivatives traded over 64m contracts, up 71.2% on January 2006. Equity products also soared, trading 37m contracts, a increase of 45.9% on the volume recorded in the corresponding month one year later.
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