NYSE Euronext Announces Fourth Quarter and Full-Year 2009 Financial Results

NYSE Euronext (NYX):

Financial and Operating Highlights (Non-GAAP)

• Third consecutive quarterly increase in net revenues and earnings per share
• EPS of $0.58, up 12% versus 4Q08; up 9% versus 3Q09
• Net revenue of $640 million, down 6% versus 4Q08; up 3% versus 3Q09
• Derivatives net revenue up 21% versus 4Q08; U.S. options market share increases to 24% in 4Q09
• Fixed operating expenses down 16% and 11% versus 4Q08 and full-year 2008, respectively, adjusted for acquisitions, foreign currency fluctuations and investment in new businesses
• Closed the acquisition of NYFIX and semi-mutualization of NYSE Liffe U.S.
• Signed definitive agreement for semi-mutualization of NYSE Amex Options
• 14% reduction in staff year-over-year excluding NYFIX

NYSE Euronext (NYX) a leading global operator of financial markets and provider of innovative trading technologies, today reported net income of $172 million, or $0.66 per diluted share for the fourth quarter of 2009, compared to a net loss of ($1,338) million, or ($5.06) per diluted share for the fourth quarter of 2008. Fourth quarter 2009 GAAP results include the impact of merger expenses and exit costs and the requisite reversal of discrete tax reserves. Fourth quarter 2008 results include the impact of merger expenses and exit costs and a non-cash charge for the impairment of certain goodwill and indefinite-lived intangible assets. Non-GAAP diluted earnings per share excluding these items was $0.58 in the fourth quarter of 2009, compared to $0.52 in the fourth quarter of 2008.

"Our fourth quarter and full-year results were solid, reflecting growing revenue and earnings power driven by our new businesses and our continuing efforts to harmonize our technology infrastructure and trading platforms,” said Duncan L. Niederauer, CEO, NYSE Euronext. "With the addition of NYFIX Marketplace, we expanded our customer base and points of connectivity with our trading communities. We moved forward with the semi-mutualization of our U.S. futures platform, and we plan to do the same with the NYSE Amex options business. We continue to make progress with the migration to the Universal Trading Platform that will provide global scale and will be a competitive differentiator and with our data center build-out nearly complete, we will expand the suite of technology services we offer our clients today, while enhancing our ability to develop the cutting-edge products of the future.”

The table below summarizes our non-GAAP results:

($ in millions, except EPS)		4Q09		3Q09		4Q08		% ? 4Q09 vs. 4Q08		FY 2009		FY 2008		% ? FY 2009 vs. FY 2008
Gross Revenues		$1,014		$1,048		$1,177		(14%)		$4,299		$4,474		(4%)
Net Revenues		$640		$624		$683		(6%)		$2,479		$2,882		(14%)
Fixed Operating Expenses		($432)		($431)		($473)		(9%)		$1,683		$1,742		(3%)
Operating Income1		$210		$197		$210		-		$803		$1,143		(30%)
Net Income		$151		$138		$137		10%		$533		$763		(30%)
Diluted Earnings Per Share		$0.58		$0.53		$0.52		12%		$2.04		$2.87		(29%)
1 Includes regulatory fine income

Michael S. Geltzeiler, Group Executive Vice President and Chief Financial Officer, NYSE Euronext, commented, "Our fourth quarter results represented the third consecutive quarterly increase in net revenue and earnings per share, reflecting increasing momentum in our business model and the continuing benefit of our various cost reduction programs. For the full-year 2009, we recorded fixed operating expenses of $1,683 million, well below the $1,742 million for full-year 2008, despite the addition of several new businesses including the former Amex businesses, NYSE Liffe Clearing and NYFIX. On a constant portfolio and constant currency basis, our underlying expense base was down $195 million, or 11% when compared to full-year 2008. As we move into 2010, our new initiatives are gaining traction, we are aggressively moving forward with the NYFIX integration and we expect to realize the full-year benefit from cost reduction programs launched in 2009.”

Non-GAAP net income for the fourth quarter of 2009 was $151 million, or $0.58 per diluted share, compared to non-GAAP net income of $137 million, or $0.52 per diluted share for the fourth quarter of 2008. Non-GAAP results for the fourth quarter of 2009 exclude $44 million in merger expenses and exit costs and the favorable impact of the requisite reversal of discrete tax reserves. Non-GAAP results for the fourth quarter of 2008 exclude $94 million in pre-tax merger expenses and exit costs and a pre-tax $1,590 million non-cash charge, primarily for the impairment of certain goodwill and indefinite-lived intangible assets. Non-GAAP net income for the full-year 2009 was $533 million, or $2.04 per diluted share, compared to non-GAAP net income of $763 million, or $2.87 per diluted share, for the full-year 2008. In addition to the items excluded above, non-GAAP results also exclude activity assessment and Section 31 fees¹. A full reconciliation of our non-GAAP results to our GAAP results is included in the attached tables.

Other Financial Highlights (Non-GAAP Basis)

• Gross revenues, excluding activity assessment fees, were $1,014 million in the fourth quarter of 2009, a 14% decrease compared to the fourth quarter of 2008 and a 3% decrease compared to the third quarter of 2009. For the full-year 2009, gross revenues of $4,299 million decreased 4% compared to full-year 2008. Full-year 2009 gross revenues were negatively impacted by a decline in global cash equities volumes and pricing changes across our European and U.S. cash businesses.
• Net revenues, defined as gross revenues less direct transaction costs consisting of Section 31 fees, liquidity payments and routing and clearing fees, were $640 million in the fourth quarter of 2009, down 6% compared to $683 million in the fourth quarter of 2008, but up 3% compared to $624 million in the third quarter of 2009. Fourth quarter 2009 net revenues compared to the fourth quarter of 2008 include a $27 million positive impact attributable to foreign currency fluctuations. Full-year 2009 net revenues were $2,479 million compared to $2,882 million for full-year 2008 and include a ($123) million negative impact attributable to foreign currency fluctuations.
• NYSE Euronext continues to make significant strides in diversifying revenue streams and creating a world-class diversified multi-asset global exchange group. Net revenues from its primary business activities are represented below as a percentage of total net revenues for the fourth quarter of 2009.
  • Global derivatives trading 28%
  • Global listings 17%
  • Global market data 15%
  • European cash trading 13%
  • Software and technology services 10%
  • U.S. cash trading 9%
  • Other 8%

  Beginning with first quarter 2010 results, NYSE Euronext will change its segment reporting to reflect how NYSE Euronext’s primary businesses will be managed in 2010. The new reportable segments will be focused on our three primary global business units: Derivatives, Cash Equities & Listings and Technology and Information Solutions.

• Fixed operating expenses, defined as operating expenses less merger expenses and exit costs, direct transaction costs, and excluding regulatory fine income, were $432 million, compared to $473 million in the fourth quarter of 2008 and $431 million in the third quarter of 2009. For the full-year 2009, fixed operating expenses of $1,683 million were down 3% compared to full-year 2008. Excluding the impact of acquisitions, foreign currency fluctuations and investment in new businesses, underlying fixed expenses were down $74 million, or 16% compared to the fourth quarter of 2008 and were down $195 million or 11% compared to the full-year 2008.
• Operating income was $210 million, flat compared to the fourth quarter of 2008, but up $13 million or 7% compared to the third quarter of 2009. Fourth quarter 2009 operating income compared to the fourth quarter of 2008 includes a $10 million positive impact attributable to foreign currency fluctuations. For the full-year 2009, operating income was $803 million compared to $1,143 million for full-year 2008 and includes a ($66) million negative impact attributable to foreign currency fluctuations.
• The effective tax rate for the fourth quarter and full-year 2009 was 27%, down from 29% in the prior year. The decline in the tax rate was due to the favorable mix of profits from our global subsidiaries.
• Non-operating income for the fourth quarter of 2009 includes the impact of a special dividend from LCH.Clearnet, as well as the impact of the sale of stakes in NYSE Liffe U.S. which resulted in the retroactive sharing of losses with our partners in the new venture.
• Despite the closing of the NYFIX acquisition, at December 31, 2009, total debt declined $119 million from the third quarter of 2009 to $2.8 billion and consists of $2.2 billion in long-term debt and $0.6 billion in short-term debt. Cash, cash equivalents, investments and other securities (including $145 million related to Section 31 fees collected from market participants and due to the SEC) was $0.5 billion and net debt was $2.3 billion.
• Headcount as of December 31, 2009 was 3,231 (excluding 136 headcount from NYFIX), down 5% from September 30, 2009 and down 14% from December 31, 2008.

Business Highlights

Global Derivatives Markets

• Global derivatives markets net trading revenue, which includes our European and U.S. derivatives businesses, was $182 million in the fourth quarter of 2009, up 21% from $150 million in the fourth quarter of 2008 and down 1% from $184 million recorded in the third quarter of 2009. For the full-year 2009, global derivatives markets net revenue was $668 million, a decrease of 7% compared to $714 million for full-year 2008.
• European derivatives net trading revenue of $146 million in the fourth quarter of 2009 increased 23% from $119 million in the fourth quarter of 2008, driven primarily by the addition of NYSE Liffe Clearing, but was down $6 million, or 4% from $152 million in the third quarter of 2009, driven by higher liquidity rebates. For the full-year 2009, European derivatives net revenue of $535 million decreased 14% from $620 million for full-year 2008, primarily driven by a ($82) million negative impact attributable to foreign currency fluctuations.
• U.S. derivatives net trading revenue of $36 million in the fourth quarter of 2009, increased $5 million from the fourth quarter of 2008 and increased $4 million from the third quarter of 2009 driven by an increase in matched market share which increased 670 and 460 basis points, respectively, compared to fourth quarter 2008 and third quarter 2009. For the full- year 2009, net revenue of $133 million increased 41%, compared to $94 million for full-year 2008 driven by the addition of the former Amex options business from October 1, 2008 and the increase in matched market share beginning in the third quarter of 2009.

Global Cash Markets

• Global cash markets net trading revenue, which includes our U.S. and European cash equities businesses, was $139 million in the fourth quarter of 2009, down 38% from the fourth quarter of 2008, but up 3% from the third quarter of 2009. For the full-year 2009 global cash markets net revenue of $580 million decreased 42% from $998 million for full-year 2008. The decrease in net revenue for all periods was driven primarily by declines in global cash equities trading volumes from the record levels achieved in 2008 and net pricing reductions.
• European cash equities net trading revenue of $80 million in the fourth quarter of 2009, decreased $62 million from the fourth quarter of 2008 and decreased $1 million from the third quarter of 2009. For the full-year 2009, European cash equities net revenue of $345 million decreased 45% from $628 million for full-year 2008 and included a ($19) million negative impact attributable to foreign currency fluctuations.
• U.S. cash equities net trading revenue of $59 million in the fourth quarter of 2009, decreased $24 million from the fourth quarter of 2008 and increased $5 million from the third quarter of 2009. For the full-year 2009, U.S. cash equities net revenue of $235 million decreased 36% from $370 million for full-year 2008.
• Total global listings revenue in the fourth quarter of 2009 was $106 million, compared to $101 million in the fourth quarter of 2008 and $100 million in the third quarter of 2009. For the full-year 2009 total global listings revenue of $406 million increased 3% from $395 million for full-year 2008.
• In the fourth quarter of 2009, a total of 20 IPOs listed on NYSE Euronext markets for total proceeds of $14.2 billion. Among the IPOs were 3 closed-end funds, 1 REIT and 16 operating companies including Banco Santander Brasil, Hyatt Hotels, Cobalt International Energy, Dollar General, Cloud Peak and Dole Food. The 20 IPOs listed on NYSE Euronext markets in the fourth quarter of 2009 represented 38% of the IPOs NYSE Euronext brought to market in 2009. According to Dealogic, for the full-year 2009, NYSE Euronext raised the second most capital among all exchanges through 53 IPOs for a total of $24.5 billion, behind the Hong Kong Stock Exchange which raised a total of $27.0 billion, but ahead of the Shanghai Exchange that raised $21.6 billion, and Nasdaq OMX which raised $8.1 billion through 33 IPOs. In 2009, NYSE Euronext raised $7.5 billion in the Banco Santander Brasil IPO, the single largest IPO for the year.

Technology Services

• NYSE Euronext closed the previously announced NYFIX acquisition on November 30, 2009. The acquisition significantly expands NYSE Euronext’s pre-trade product offering and global buy-side and sell-side trading communities. The NYFIX Marketplace is one of the industry’s broadest and deepest FIX-based communities where more than 1,000 global trading counterparties connect to one another via more than 9,000 fully managed FIX-based messaging channels.

NYSE Euronext Earnings News Release with Tables and Operating Data

Analyst/Investor/Media Call: February 9, 2010 at 8:00 a.m. (NY/EST)/2:00 p.m. (Paris/CET)

A presentation and live audio webcast of the fourth quarter and full-year 2009 earnings conference call will be available on the Investor Relations section of NYSE Euronext’s website, http://www.nyseeuronext.com/ir. Those wishing to listen to the live conference via telephone should dial-in at least ten minutes before the call begins. An audio replay of the conference call will be available approximately one hour after the call on the Investor Relations section of NYSE Euronext’s website, http://www.nyseeuronext.com/ir or by dial-in beginning approximately two hours following the conclusion of the live call.

Live Dial-in Information: United States: 866.578.5788 International: 617.213.8057 Passcode: 50789946 Replay Dial-in Information: United States: 888.286.8010 International: 617.801.6888 Passcode: 89047921

To supplement NYSE Euronext’s consolidated financial statements prepared in accordance with GAAP and to better reflect period-over-period comparisons, NYSE Euronext uses non-GAAP financial measures of performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure, calculated and presented in accordance with GAAP. Non-GAAP financial measures do not replace and are not superior to the presentation of GAAP financial results, but are provided to (i) present the effects of certain merger expenses, exit costs and other special items, and (ii) improve overall understanding of NYSE Euronext’s current financial performance and its prospects for the future. Specifically, NYSE Euronext believes the non-GAAP financial results provide useful information to both management and investors regarding certain additional financial and business trends relating to financial condition and operating results. In addition, management uses these measures for reviewing financial results and evaluating financial performance. The non-GAAP adjustments for all periods presented are based upon information and assumptions available as of the date of this release.

About NYSE Euronext

NYSE Euronext (NYX) is a leading global operator of financial markets and provider of innovative trading technologies. The company's exchanges in Europe and the United States trade equities, futures, options, fixed-income and exchange-traded products. With more than 8,000 listed issues, NYSE Euronext's equities markets -- the New York Stock Exchange, NYSE Euronext, NYSE Amex and NYSE Alternext as well as NYSE Arca – represent nearly 40 percent of the world's equities trading, the most liquidity of any global exchange group. NYSE Euronext also operates NYSE Liffe, the leading European derivatives business and the world's second-largest derivatives business by value of trading. The company offers comprehensive commercial technology, connectivity and market data products and services through NYSE Technologies. NYSE Euronext is in the S&P 500 index, and is the only exchange operator in the S&P 100 index and Fortune 500. For more information, please visit: http://www.nyx.com

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning NYSE Euronext’s plans, objectives, expectations and intentions and other statements that are not historical or current facts. Forward-looking statements are based on NYSE Euronext’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause NYSE Euronext’s results to differ materially from current expectations include, but are not limited to: NYSE Euronext’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk and U.S. and global competition, and other factors detailed in NYSE Euronext’s reference document for 2008 ("document de référence") filed with the French Autorité des Marchés Financiers (Registered on April 28, 2009 under No. R. 09-031), 2008 Annual Report on Form 10-K and other periodic reports filed with the U.S. Securities and Exchange Commission or the French Autorité des Marchés Financiers. In addition, these statements are based on a number of assumptions that are subject to change. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by NYSE Euronext that the projections will prove to be correct. This press release speaks only as of this date. NYSE Euronext disclaims any duty to update the information herein.

¹ Section 31 of the Securities Exchange Act of 1934 requires each Self-Regulatory Organization to pay the SEC twice annually a fee based on the aggregate dollar amount of certain sales of securities such that the SEC can recover the costs to the government of supervision and regulation of securities markets and securities professionals.

NYSE Euronext
Condensed consolidated statements of income in accordance with U.S. GAAP (unaudited)
(in millions, except per share data)
		Three months ended December 31,									Year ended December 31,
		2009				2008					2009				2008
Revenues
Activity assessment		$	117			$	40				$	388			$	229
Cash trading			453				679					2,204				2,387
Derivatives trading and clearing			242				190					862				919
Listing			106				101					406				395
Market data			97				108					402				429
Software and technology services			61				53					201				160
Regulatory			12				13					43				49
Other			43				33					181				135
Total revenues			1,131				1,217					4,687				4,703
Section 31 fees			(117	)			(40	)				(388	)			(229	)
Liquidity payments			(331	)			(405	)				(1,573	)			(1,292	)
Routing and clearing			(43	)			(89	)				(247	)			(300	)
Merger expenses and exit costs			(44	)			(94	)				(517	)			(177	)
Impairment charges			-				(1,590	)				-				(1,590	)
Compensation			(157	)			(184	)				(649	)			(664	)
Systems and communications			(58	)			(80	)				(225	)			(317	)
Professional services			(60	)			(57	)				(223	)			(163	)
Depreciation and amortization			(66	)			(72	)				(266	)			(253	)
Occupancy			(43	)			(29	)				(156	)			(125	)
Marketing and other			(48	)			(51	)				(164	)			(184	)
Regulatory fine income			2				-					7				3
Operating income (loss) from continuing operations			166				(1,474	)				286				(588	)
Net interest and investment loss			(29	)			(27	)				(110	)			(99	)
Gain on sale of equity investment			1				2					1				4
Other income			9				10					28				38
Income (loss) from continuing operations before income tax benefit (provision)			147				(1,489	)				205				(645	)
Income tax benefit (provision)			14				149					7				(95	)
Income (loss) from continuing operations			161				(1,340	)				212				(740	)
Income from discontinued operations, net of tax			-				2					-				7
Net income (loss)			161				(1,338	)				212				(733	)
Net loss (income) attributable to noncontrolling interest			11				-					7				(5	)
Net income (loss) attributable to NYSE Euronext		$	172			$	(1,338	)			$	219			$	(738	)
Basic earnings per share attributable to NYSE Euronext
Earnings per share, continuing operations		$	0.66			$	(5.07	)			$	0.84			$	(2.81	)
Earnings per share, discontinued operations			-				0.01					-				0.03
		$	0.66			$	(5.06	)			$	0.84			$	(2.78	)
Diluted earnings per share attributable to NYSE Euronext
Earnings per share, continuing operations			0.66			$	(5.07	)			$	0.84			$	(2.81	)
Earnings per share, discontinued operations			-				0.01					-				0.03
		$	0.66			$	(5.06	)			$	0.84			$	(2.78	)
Basic weighted average shares outstanding			260				264					260				265
Diluted weighted average shares outstanding			261				264					261				265

NYSE Euronext
Condensed combined statements of income including non-GAAP financial measures (unaudited)
(in millions, except per share data)
We use non-GAAP financial measures of operating performance. Non-GAAP measures do not replace and are not superior to the presentation of our GAAP financial results but are provided to improve overall understanding of our current financial performance and our prospects for the future.
Please refer to the table entitled "Reconciliation of non-GAAP Financial Measures to GAAP Measures (unaudited)"
			Three months ended December 31, [a, b, c, d, e]												Year ended December 31, [a, b, c, d, e]
			2009					2008							2009					2008
Revenues
Cash trading			$	453				$	679						$	2,204				$	2,387
Derivatives trading and clearing				242					190							862					919
Listing				106					101							406					395
Market data				97					108							402					429
Software and technology services				61					53							201					160
Regulatory				12					13							43					49
Other				43					33							181					135
Total revenues				1,014					1,177							4,299					4,474
Liquidity payments				(331	)				(405	)						(1,573	)				(1,292	)
Routing and clearing				(43	)				(89	)						(247	)				(300	)
Compensation				(157	)				(184	)						(649	)	[g]			(700	)	[f]
Systems and communications				(58	)				(80	)						(225	)				(317	)
Professional services				(60	)				(57	)						(223	)				(163	)
Depreciation and amortization				(66	)				(72	)						(266	)				(253	)
Occupancy				(43	)				(29	)						(156	)				(125	)
Marketing and other				(48	)				(51	)						(164	)				(184	)
Regulatory fine income				2					-							7					3
Operating income				210					210							803					1,143
Net interest and investment loss				(29	)				(27	)						(110	)				(99	)
Other income				9					10							24		[h]			38
Income before income tax provision				190					193							717					1,082
Income tax provision				(50	)				(56	)						(191	)				(314	)
Net income				140					137							526					768
Net loss (income) attributable to noncontrolling interest				11					-							7					(5	)
Net income attributable to NYSE Euronext			$	151				$	137						$	533				$	763
Basic earnings per share attributable to NYSE Euronext			$	0.58				$	0.52						$	2.05				$	2.88
Diluted earnings per share attributable to NYSE Euronext			$	0.58				$	0.52						$	2.04				$	2.87
Basic weighted average shares outstanding				260					264							260					265
Diluted weighted average shares outstanding				261					264							261					266

	The non-GAAP results of NYSE Euronext include the following adjustments to the GAAP results:
[a]	The results of operations are presented as if the divestiture of the investment in GL Trade had been completed at the beginning of the earliest period presented.
[b]	Merger expenses and exit costs of $44 million and $94 million have been eliminated from the results of operations for the three months ended December 31, 2009 and 2008, respectively, and $517 million and $177 million have been eliminated from the results of operations for the year ended December 31, 2009 and 2008, respectively.
[c]	Impairment losses of $1,590 million have been eliminated from the results of operations for the three months and the year ended December 31, 2008.
[d]	Activity assessment fees and Section 31 fees have been excluded from revenues and expenses, respectively, as they have no impact on operating income or net income.
[e]	Gains on sale of equity investments of $1 million and $2 million have been eliminated from the results of operations for the three months ended December 31, 2009 and 2008, respectively, and $1 million and $4 million have been eliminated from the results of operations for the year ended December 31, 2009 and 2008, respectively.
[f]	Excludes $36 million of income from the reversal of an accrual relating to certain litigation between a former Chairman & CEO and the NYSE, which was terminated on July 31, 2008.
[g]	Includes a $10 million curtailment gain associated with a change in our retiree medical plan.
[h]	Excludes a $4 million net gain from the sale of our investment in BM&F Bovespa, partially offset by fair value adjustments of our investments in Hugin and BIDS Holdings, L.P.

NYSE Euronext
Condensed combined statements of income including non-GAAP financial measures (unaudited)
(in millions, except per share data)
We use non-GAAP financial measures of operating performance. Non-GAAP measures do not replace and are not superior to the presentation of our GAAP financial results but are provided to improve overall understanding of our current financial performance and our prospects for the future.
		Three months ended December 31, 2009 [a, b, c]																Three months ended December 31, 2008 [a, b, c, d]
		US Operations				European Operations				Corporate Items [f]				Pro Forma Combined				US Operations				European Operations				Corporate Items [f]				Pro Forma Combined
Revenues
Cash trading		$	373			$	80			$	-			$	453			$	537			$	142			$	-			$	679
Derivatives trading and clearing			58				184				-				242				44				146				-				190
Listing			92				14				-				106				94				7				-				101
Market data			49				48				-				97				59				49				-				108
Other revenues			91				49				(24	)			116				60				66				(27	)			99
Total revenues (1)			663				375				(24	)			1,014				794				410				(27	)			1,177
Liquidity payments, routing and clearing (2)			(336	)			(38	)			-				(374	)			(467	)			(27	)			-				(494	)
Fixed operating expenses			(245	)			(201	)			14				(432	)			(286	)			(208	)			21				(473	)
Regulatory fine income			2				-				-				2				-				-				-				-
Operating income		$	84			$	136			$	(10	)		$	210			$	41			$	175			$	(6	)		$	210
Net revenues= (1) + (2)		$	327			$	337			$	(24	)		$	640			$	327			$	383			$	(27	)		$	683
		Year ended December 31, 2009 [a, b, c]																Year ended December 31, 2008 [a, b, c, d]
		US Operations				European Operations				Corporate Items [f]				Pro Forma Combined				US Operations				European Operations				Corporate Items [f]				Pro Forma Combined
Revenues
Cash trading		$	1,856			$	348			$	-			$	2,204			$	1,759			$	628			$	-			$	2,387
Derivatives trading and clearing			194				668				-				862				152				767				-				919
Listing			365				41				-				406				363				32				-				395
Market data			214				188				-				402				215				214				-				429
Other revenues			280				195				(50	)			425				252				119				(27	)			344
Total revenues (1)			2,909				1,440				(50	)			4,299				2,741				1,760				(27	)			4,474
Liquidity payments, routing and clearing (2)			(1,687	)			(134	)			1				(1,820	)			(1,445	)			(147	)			-				(1,592	)
Fixed operating expenses			(962	)			(743	)			22				(1,683	)			(947	)	[e]		(781	)			(14	)			(1,742	)
Regulatory fine income			7				-				-				7				3				-				-				3
Operating income		$	267			$	563			$	(27	)		$	803			$	352			$	832			$	(41	)		$	1,143
Net revenues= (1) + (2)		$	1,222			$	1,306			$	(49	)		$	2,479			$	1,296			$	1,613			$	(27	)		$	2,882

	The non-GAAP results of NYSE Euronext include the following adjustments to the GAAP results:
[a]	The results of operations are presented as if the divestiture of the investment in GL Trade had been completed at the beginning of the earliest period presented.
[b]	Merger expenses and exit costs of $44 million and $94 million have been eliminated from the results of operations for the three months ended December 31, 2009 and 2008, respectively, and $517 million and $177 million have been eliminated from the results of operations for the year ended December 31, 2009 and 2008, respectively.
[c]	Activity assessment fees and Section 31 fees have been excluded from revenues and expenses, respectively, as they have no impact on operating income or net income.
[d]	Impairment losses of $1,590 million have been eliminated from the results of operations for the three months and year ended December 31, 2008.
[e]	Excludes $36 million of income from the reversal of an accrual relating to certain litigation between a former Chairman & CEO and the NYSE, which was terminated on July 31, 2008.
[f]	Corporate Items include intercompany eliminations of revenues and expenses between U.S. and Europe.

NYSE Euronext
Reconciliation of non-GAAP financial measures to GAAP measures (unaudited)
(in millions)
We use non-GAAP financial measures of operating performance. Non-GAAP measures do not replace and are not superior to the presentation of our GAAP financial results but are provided to improve overall understanding of our current financial performance and our prospects for the future.
Three months ended December 31, 2009		U.S. GAAP Results				Adjustments				Non-GAAP results
Revenues		$	1,131			$	(117	)	[a]	$	1,014
Operating expenses, net			(965	)			161		[b]		(804	)
Operating income			166				44				210
Net interest and investment loss			(29	)			-				(29	)
Gain on sale of equity investment			1				(1	)			-
Other income			9				-				9
Income before income tax benefit (provision)			147				43				190
Income tax benefit (provision)			14				(64	)	[d]		(50	)
Net income			161				(21	)			140
Noncontrolling interest			11				-				11
Net income attributable to NYSE Euronext		$	172			$	(21	)		$	151
Three months ended December 31, 2008		U.S. GAAP Results				Adjustments				Non-GAAP results
Revenues		$	1,217			$	(40	)	[a]	$	1,177
Operating expenses, net			(2,691	)			1,724		[b]		(967	)
Operating income			(1,474	)			1,684				210
Net interest and investment loss			(27	)			-				(27	)
Gain on sale of equity investment			2				(2	)			-
Other income			10				-				10
(Loss) income before income tax benefit (provision)			(1,489	)			1,682				193
Income tax benefit (provision)			149				(205	)	[d]		(56	)
Income from discontinued operations, net of tax			2				(2	)	[e]		-
Net (loss) income			(1,338	)			1,475				137
Noncontrolling interest			-				-				-
Net (loss) income attributable to NYSE Euronext		$	(1,338	)		$	1,475			$	137
Year ended December 31, 2009		U.S. GAAP Results				Adjustments				Non-GAAP results
Revenues		$	4,687			$	(388	)	[a]	$	4,299
Operating expenses, net			(4,401	)			905		[b]		(3,496	)
Operating income			286				517				803
Net interest and investment loss			(110	)			-				(110	)
Gain on sale of equity investment			1				(1	)			-
Other income			28				(4	)	[c]		24
Income before income tax benefit (provision)			205				512				717
Income tax benefit (provision)			7				(198	)	[d]		(191	)
Net income			212				314				526
Noncontrolling interest			7				-				7
Net income attributable to NYSE Euronext		$	219			$	314			$	533
Year ended December 31, 2008		U.S. GAAP Results				Adjustments				Non-GAAP results
Revenues		$	4,703			$	(229	)	[a]	$	4,474
Operating expenses, net			(5,291	)			1,960		[b]		(3,331	)
Operating income			(588	)			1,731				1,143
Net interest and investment loss			(99	)			-				(99	)
Gain on sale of equity investment			4				(4	)			-
Other income			38				-				38
(Loss) income before income tax provision			(645	)			1,727				1,082
Income tax provision			(95	)			(219	)	[d]		(314	)
Income from discontinued operations, net of tax			7				(7	)	[e]		-
Net (loss) income			(733	)			1,501				768
Noncontrolling interest			(5	)			-				(5	)
Net (loss) income attributable to NYSE Euronext		$	(738	)		$	1,501			$	763

[a]	Includes Activity assessment fees.
[b]	Includes the following adjustments:
			Three months ended								Year ended
			December 31, 2009				December 31, 2008				December 31, 2009				December 31, 2008
	Section 31 fees		$	117			$	40			$	388			$	229
	Merger expenses and exit costs			44				94				517				177
	Impairment charges			-				1,590				-				1,590
	Compensation			-				-				-				(36	)	*
			$	161			$	1,724			$	905			$	1,960
	* To eliminate the reversal of an accrual relating to certain litigation.
[c]	Includes a $4 million net gain from the sale of our investment in BM&F Bovespa, partially offset by fair value adjustments of our investments in Hugin and BIDS Holdings, L.P.
[d]	Includes the tax effect of pro forma adjustments and normalization of our effective tax rate.
[e]	Includes the adjustment to present results of operations as if the divestiture of GL Trade had been completed at the beginning of the earliest period presented.

NYSE Euronext
Operating expenses including non-GAAP financial measures (unaudited)
(in millions)
We use non-GAAP financial measures of operating performance. Non-GAAP measures do not replace and are not superior to the presentation of our GAAP financial results but are provided to improve overall understanding of our current financial performance and our prospects for the future.
Operating expenses for the three months ended December 31, 2009 on a GAAP basis				$	967
	less:
	Section 31 fees				(117	)
	Liquidity payments				(331	)
	Routing and clearing				(43	)
	Merger expenses and exit costs				(44	)
Fixed operating expenses for the three months ended December 31, 2009					432
	Excluding the impact of:
		Currency translation			(17	)
		Acquisitions and dispositions, net			(1	)	*
		New business initiatives			(12	)	**
		Duplicative datacenter and integration			(3	)
Fixed operating expenses for the three months ended December 31, 2009 on a non-GAAP basis				$	399			[a]
Operating expenses for the three months ended December 31, 2008 on a GAAP basis				$	2,691
	less:
	Section 31 fees				(40	)
	Liquidity payments				(405	)
	Routing and clearing				(89	)
	Impairment charges				(1,590	)
	Merger expenses and exit costs				(94	)
Fixed operating expenses for the three months ended December 31, 2008				$	473			[b]
Variance ($)				$	(74	)		[a] - [b] = [c]
Variance (%)					-16	%		[c] / [b]
Operating expenses for the year ended December 31, 2009 on a GAAP basis				$	4,408
	less:
	Section 31 fees				(388	)
	Liquidity payments				(1,573	)
	Routing and clearing				(247	)
	Merger expenses and exit costs				(517	)
Fixed operating expenses for the year ended December 31, 2009					1,683
	Excluding the impact of:
		Currency translation			57
		Acquisitions and dispositions, net			(110	)	*
		New business initiatives			(65	)	**
		Duplicative datacenter and integration			(18	)
Fixed operating expenses for the year ended December 31, 2009 on a non-GAAP basis				$	1,547			[d]
Operating expenses for the year ended December 31, 2008 on a GAAP basis				$	5,294
	less:
	Section 31 fees				(229	)
	Liquidity payments				(1,292	)
	Routing and clearing				(300	)
	Impairment charges				(1,590	)
	Merger expenses and exit costs				(177	)
	Compensation				36		***
Fixed operating expenses for the year ended December 31, 2008				$	1,742			[e]
Variance ($)				$	(195	)		[d] - [e] = [f]
Variance (%)					-11	%		[f] / [e]
*	Includes the contribution of Amex, AEMS and NYFIX, net of the disposition of Hugin.
**	Includes the contribution of new business initiatives, primarily SFTI Europe, SmartPool, NYSE Liffe Clearing and NYSE Liffe U.S.
***	Adjusted to exclude $36 million of income from the reversal of an accrual related to certain litigation.

NYSE Euronext
Condensed consolidated statements of financial condition (unaudited)
(in millions)
		December 31,
		2009				2008
Assets
Current assets:
Cash, cash equivalents, investment and other securities		$	490			$	1,013
Accounts receivable, net			660				744
Deferred income taxes			100				113
Other current assets			270				156
Total current assets			1,520				2,026
Property and equipment, net			986				695
Goodwill			4,210				3,985
Other intangible assets, net			6,184				5,866
Deferred income taxes			656				671
Investment in associates and other assets			802				705
Total assets		$	14,358			$	13,948
Liabilities and equity
Accounts payable and accrued expenses		$	1,328			$	1,330
Deferred revenue			163				113
Short term debt			616				1,101
Deferred income taxes			18				38
Total current liabilities			2,125				2,582
Long term debt			2,166				1,787
Deferred income taxes			2,090				2,002
Accrued employee benefits			504				576
Deferred revenue			362				360
Other liabilities			176				67
Total liabilities			7,423				7,374
Equity			6,935				6,574
Total liabilities and equity		$	14,358			$	13,948

NYSE Euronext Selected Statistical Data: Volume Summary - Cash Products
				Average Daily Volume						Total Volume						Average Daily Volume						Total Volume
(Unaudited)				Q4 '09		Q4 '08		% Chg		Q4 '09		Q4 '08		% Chg		FY 2009		FY 2008		% Chg		FY 2009		FY 2008		% Chg
Number of Trading Days - European Markets				65		64		-		65		64		-		256		256		-		256		256		-
Number of Trading Days - U.S. Markets				64		64		-		64		64		-		252		253		-		252		253		-
European Cash Products (trades in thousands)				1,329		1,621		-18.0%		86,423		103,721		-16.7%		1,368		1,551		-11.8%		350,282		396,956		-11.8%
Equities				1,273		1,560		-18.4%		82,768		99,869		-17.1%		1,310		1,497		-12.5%		335,405		383,119		-12.5%
Exchange-Traded Funds				15		14		11.4%		983		869		13.1%		14		9		55.5%		3,677		2,365		55.5%
Structured Products				35		42		-15.4%		2,286		2,661		-14.1%		38		40		-4.0%		9,745		10,150		-4.0%
Bonds				6		5		18.0%		386		322		19.8%		6		5		10.1%		1,455		1,322		10.1%
U.S. Cash Products (shares in millions)				2,570		4,088		-37.1%		164,455		261,667		-37.2%		3,281		3,536		-7.2%		826,738		894,503		-7.6%
NYSE Listed Issues 1
NYSE Group Handled Volume 2				1,896		2,884		-34.3%		121,316		184,604		-34.3%		2,398		2,585		-7.2%		604,231		653,910		-7.6%
NYSE Group Matched Volume 3				1,748		2,600		-32.8%		111,881		166,379		-32.8%		2,183		2,331		-6.4%		550,000		589,712		-6.7%
Total NYSE Listed Consolidated Volume				4,774		6,052		-21.1%		305,536		387,345		-21.1%		5,686		5,111		11.3%		1,432,761		1,292,987		10.8%
NYSE Group Share of Total NYSE Listed Consolidated Volume
Handled Volume 2				39.7%		47.7%		-8.0%		39.7%		47.7%		-8.0%		42.2%		50.6%		-8.4%		42.2%		50.6%		-8.4%
Matched Volume 3				36.6%		43.0%		-6.4%		36.6%		43.0%		-6.4%		38.4%		45.6%		-7.2%		38.4%		45.6%		-7.2%
NYSE Arca & Amex Listed Issues
NYSE Group Handled Volume 2				365		742		-50.8%		23,362		47,493		-50.8%		514		495		3.7%		129,457		125,327		3.3%
NYSE Group Matched Volume 3				320		637		-49.7%		20,494		40,782		-49.7%		450		429		4.9%		113,278		108,452		4.5%
Total NYSE Arca & Amex Listed Consolidated Volume				1,431		2,172		-34.1%		91,569		139,005		-34.1%		1,888		1,489		26.8%		475,653		376,728		26.3%
NYSE Group Share of Total NYSE Arca & NYSE Amex Listed Consolidated Volume
Handled Volume 2				25.5%		34.2%		-8.7%		25.5%		34.2%		-8.7%		27.2%		33.3%		-6.1%		27.2%		33.3%		-6.1%
Matched Volume 3				22.4%		29.3%		-6.9%		22.4%		29.3%		-6.9%		23.8%		28.8%		-5.0%		23.8%		28.8%		-5.0%
Nasdaq Listed Issues
NYSE Group Handled Volume 2				309		462		-33.1%		19,777		29,570		-33.1%		369		456		-19.0%		93,050		115,266		-19.3%
NYSE Group Matched Volume 3				251		386		-35.0%		16,055		24,695		-35.0%		301		381		-21.0%		75,887		96,467		-21.3%
Total Nasdaq Listed Consolidated Volume				2,051		2,322		-11.7%		131,265		148,638		-11.7%		2,236		2,280		-1.9%		563,411		576,878		-2.3%
NYSE Group Share of Total Nasdaq Listed Consolidated Volume
Handled Volume 2				15.1%		19.9%		-4.8%		15.1%		19.9%		-4.8%		16.5%		20.0%		-3.5%		16.5%		20.0%		-3.5%
Matched Volume 3				12.2%		16.6%		-4.4%		12.2%		16.6%		-4.4%		13.5%		16.7%		-3.2%		13.5%		16.7%		-3.3%
Exchange-Traded Funds 1,4
NYSE Group Handled Volume 2				343		746		-54.1%		21,934		47,770		-54.1%		502		516		-2.8%		126,431		130,529		-3.1%
NYSE Group Matched Volume 3				302		647		-53.3%		19,348		41,425		-53.3%		440		450		-2.2%		110,970		113,817		-2.5%
Total ETF Consolidated Volume				1,388		2,286		-39.3%		88,835		146,299		-39.3%		1,896		1,567		21.0%		477,683		396,436		20.5%
NYSE Group Share of Total ETF Consolidated Volume
Handled Volume 2				24.7%		32.7%		-8.0%		24.7%		32.7%		-8.0%		26.5%		32.9%		-6.5%		26.5%		32.9%		-6.5%
Matched Volume 3				21.8%		28.3%		-6.5%		21.8%		28.3%		-6.5%		23.2%		28.7%		-5.5%		23.2%		28.7%		-5.5%
Please refer to footnotes on the following page.
NYSE Euronext Selected Statistical Data: Volume Summary - Derivatives Products
				Average Daily Volume						Total Volume						Average Daily Volume						Total Volume
(Unaudited; contracts in thousands)				Q4 '09		Q4 '08		% Chg		Q4 '09		Q4 '08		% Chg		FY 2009		FY 2008		% Chg		FY 2009		FY 2008		% Chg
Number of Trading Days - European Markets				65		64		-		65		64		-		256		256		-		256		256		-
Number of Trading Days - U.S. Markets				64		64		-		64		64		-		252		253		-		252		253		-
European Derivatives Products				4,060		3,689		10.1%		263,903		236,107		11.8%		4,125		4,100		0.6%		1,056,011		1,049,730		0.6%
Total Interest Rate Products5				2,040		1,737		17.5%		132,576		111,140		19.3%		2,022		2,168		-6.7%		517,700		554,878		-6.7%
	Short Term Interest Rate Products			1,936		1,644		17.7%		125,813		105,217		19.6%		1,922		2,065		-6.9%		492,024		528,578		-6.9%
	Medium and Long Term Interest Rate Products			104		93		12.4%		6,763		5,923		14.2%		100		103		-2.4%		25,676		26,300		-2.4%
Total Equity Products 6				1,972		1,908		3.3%		128,174		122,140		4.9%		2,055		1,881		9.3%		526,170		481,606		9.3%
	Total Individual Equity Products			1,381		1,158		19.2%		89,786		74,142		21.1%		1,445		1,205		19.9%		369,915		308,574		19.9%
	Total Equity Index Products			591		750		-21.3%		38,388		47,998		-20.0%		610		676		-9.7%		156,255		173,032		-9.7%
	Bclear			867		713		21.6%		56,386		45,666		23.5%		1,019		746		36.7%		260,950		190,874		36.7%
		Individual Equity Products		732		584		25.3%		47,592		37,392		27.3%		887		634		39.9%		226,972		162,272		39.9%
		Equity Index Products		135		129		4.6%		8,794		8,274		6.3%		133		112		18.8%		33,978		28,602		18.8%
Commodity Products				49		44		9.8%		3,154		2,827		11.5%		47		52		-8.3%		12,141		13,246		-8.3%
U.S. Derivatives Products - Equity Options 7
NYSE Group Options Contracts				3,096		2,074		49.3%		198,151		132,721		49.3%		2,641		1,822		44.9%		665,560		461,013		44.4%
Total Consolidated Options Contracts				12,862		11,932		7.8%		823,183		763,628		7.8%		13,360		12,983		2.9%		3,366,731		3,284,761		2.5%
NYSE Group Share of Total				24.1%		17.4%		6.7%		24.1%		17.4%		6.7%		19.8%		14.0%		5.8%		19.8%		14.0%		5.8%
NYSE Liffe U.S.
Futures and Futures Options Volume				21.1		-				1,357.9		-				17.7		-				4,471.4		-		-
1	Includes all volume executed in NYSE Group crossing sessions.
2	Represents the total number of shares of equity securities and ETFs internally matched on the NYSE Group's exchanges or routed to and executed at an external market center. NYSE Arca routing includes odd-lots.
3	Represents the total number of shares of equity securities and ETFs executed on the NYSE Group's exchanges.
4	Data included in previously identified categories.
5	Includes currency products.
6	Includes all trading activities for Bclear, NYSE Liffe's clearing service for wholesale derivatives.
7	Includes trading in U.S. equity options contracts, not equity-index options.
	Source: NYSE Euronext, Options Clearing Corporation and Consolidated Tape as reported for equity securities.
	All trading activity is single-counted, except European cash trading which is double counted to include both buys and sells.
	US data has been updated for Amex integration for October 2008 forward.

NYSE Euronext
Selected Statistical Data: Other Operating Statistics
			Three Months Ended						Full Year
(Unaudited)			December 31, 2009		September 30, 2009		December 31, 2008		2009		2008
NYSE Euronext Listed Issuers
NYSE Listed Issuers
	Issuers listed on U.S. Markets1		2,946		2,974		3,108		2,946		2,447
	Number of new issuer listings1		107		61		711		284		908
	Capital raised in connection with new listings ($millions)2		$13,310		$3,098		$62		$18,997		$23,238
Euronext Listed Issuers
	Issuers listed on Euronext1		1,035		1,040		1,110		1,035		1,110
	Number of new issuer listings3		16		16		15		42		78
	Capital raised in connection with new listings ($millions)2		$2,841		$7		$25		$2,692		$3,333
NYSE Euronext Market Data
NYSE Market Data4
	Share of Tape A revenues (%)		45.1%		45.1%		49.7%		46.5%		51.8%
	Share of Tape B revenues (%)		32.7%		31.7%		34.1%		33.1%		34.1%
	Share of Tape C revenues (%)		17.7%		19.0%		21.4%		19.4%		20.6%
	Professional subscribers (Tape A)		387,627		388,468		450,041		387,627		450,041
Euronext Market Data
	Number of terminals		240,201		240,007		275,430		240,201		275,430
NYSE Euronext Operating Expenses
NYSE Euronext employee headcount5
	NYSE Euronext headcount		3,367		3,399		3,757		3,367		3,757
NYSE Euronext Financial Statistics
NYSE Euronext foreign exchange rate
	Average €/US$ exchange rate		$1.476		$1.430		$1.319		$1.394		$1.471
	Average £/US$ exchange rate		$1.632		$1.641		$1.570		$1.566		$1.853
1	Figures for NYSE listed issuers include listed operating companies, SPACs, closed-end funds, and ETFs, and do not include NYSE Arca, Inc. or structured products listed on the NYSE. There were 1,065 ETFs and 3 operating companies exclusively listed on NYSE Arca, Inc. as of December 31, 2009. There were 483 structured products listed on the NYSE as of December 31, 2009. Figures for new issuer listings include NYSE new listings and new ETP listings only (NYSE Amex and NYSE Arca are excluded). Figures for Euronext present the operating companies were listed on Euronext and do not include NYSE Alternext, Free Market, closed-end funds, ETFs and structured product (warrants and certificates). As of December 31, 2009, 125 companies were listed on NYSE Alternext, 312 on Free Market and 497 ETFs were listed on NextTrack.
2	Euronext figures show capital raised in millions of dollars by operating companies listed on Euronext, NYSE Alternext and Free Market and do not include closed-end funds, ETFs and structured products (warrants and certificates). NYSE figures show capital raised in millions of dollars by operating companies listed on NYSE and NYSE Arca and do not include closed-end funds, ETFs and structured products.
3	Euronext figures include operating companies listed on Euronext, NYSE Alternext and Free Market and do not include closed-end funds, ETFs and structured products (warrants and certificates).
4	"Tape A" represents NYSE listed securities, "Tape B" represents NYSE Arca and NYSE Amex listed securities, and "Tape C" represents Nasdaq listed securities. Per Regulation NMS, as of April 1, 2007, share of revenues is derived through a formula based on 25% share of trading, 25% share of value traded, and 50% share of quoting, as reported to the consolidated tape. Prior to April 1, 2007, share of revenues for Tape A and B was derived based on number of trades reported to the consolidated tape, and share of revenue for Tape C was derived based on an average of share of trades and share of volume reported to the consolidated tape. The consolidated tape refers to the collection and dissemination of market data that multiple markets make available on a consolidated basis. Share figures exclude transactions reported to the FINRA/NYSE Trade Reporting Facility.
5	NYSE Euronext headcount includes both the employees of NYXT and NYSE Amex for all periods presented and excludes GL Trade headcounts resulting from the sale of its 40% stake in October 2008. December 2009 headcount includes 136 NYFIX employees of which 85 were terminated in January 2010.
	Source: NYSE Euronext, Options Clearing Corporation and Consolidated Tape as reported for equity securities.