Improved US derivatives volumes helped to push up revenues for NYSE Euronext despite a weakening in the US equities market.
Average daily volume of US equity options in the second quarter of 2013 increased by 12% to 4.4 million contracts compared with the same period in 2012. Consolidated equity options saw an average volume of 15.9 million contracts, up 7% from last year.
However, US cash trading was down, dropping 11% to an average daily volume of 1.6 billion shares in Q2 2013.
The group’s European performance was downbeat, with average daily volume for listed derivatives reaching 4 million contracts, down 13% year-on-year. European equities also struggled and cash volume dropped 14% to an average of 1.5 million transactions.
Despite the mixed performance, global derivatives volume was up, adding 12% compared to Q2 2012 to 7.7 million contracts, though this was down 2% from the first quarter of 2013.
Net revenue from derivatives was US$195 million in Q2 2013, up from US$182 million in the previous year. Lower cash trading was offset by increased listings activity, leading to a modest year-on-increase of less than 1% in net revenue to US$302 million.
Lower equity volumes and European performance did not prevent NYSE Euronext from posting increased revenue, up 1% year-on-year to US$611 million. Operating income also climbed to US$299 million, an 11% increased compared to the second quarter of 2012.
The firm said improved profitability was driven by its cost saving program, which has reduced expenditure by 7% year-to-date, with more reductions to follow this year.
“Further cost savings will come online in the second half of 2013 with the completed transition to ICE Clear Europe which will position us to easily surpass our full-year cost guidance target of US$1.525 billion,” said Michael Geltzeiler, group executive vice president and CFO.
NYSE Euronext also confirmed it is working with the College of Regulators in Europe to obtain remaining approvals for its merger with Intercontinental Exchange (ICE).