NYSE Euronext Inc. has pledged to reduce costs further to offset slower trading as it prepares for this year’s planned sale to IntercontinentalExchange (ICE).
The global exchange operator reported net quarterly revenue down 11 per cent to $562-million (U.S.) on Tuesday and said that it will sell all or part of its 5-per-cent stake in Mumbai-based commodities market MCX.
“We are focused on building momentum in our business prior to closing the deal with ICE, which we expect in the second half of this year,” NYSE Euronext Chief Executive Duncan Niederauer said.
The takeover of NYSE Euronext, which operates European futures exchange Liffe, by energy market ICE will create a powerful derivatives exchange and clearing house group.
NYSE Euronext Chief Financial Officer Michael Geltzeiler said that the MCX stake sale is in addition to the previously flagged unwinding of the BlueNext carbon-trading exchange, which was built in partnership with France’s Caisse des Depots et Consignations.
The group is also moving its clearing business to ICE’s in-house clearer ICE Clear as part of the $8.2-billion takeover deal announced in December.
The cost-cutting pledges came as NYSE Euronext said that fourth-quarter cash trading and listing revenue was down 10 per cent at $282-million. Data and systems revenue fell 6 per cent to $120-million and futures trading was off 14 per cent at $160-million.
“The impact of lacklustre trading volumes was somewhat mitigated by lower costs and lower share count,” Geltzeiler said.