Growth in its information technology and services business accounted for 11% of the $105 million increase in net revenue that NYSE Euronext reported for its third quarter.
Revenue for its Information Services and Technology Solutions was $125 million in the third quarter of 2011, an increase of $12 million, or 9% from a year earlier.
The growth in its information services business, commercialized largely by its NYSE Technologies arm, was more than a third of the $30 million increase in revenue that NYSE Euronext reported from non-trading businesses.
All told, NYSE Euronext revenue reached $704 million for the quarter, up from $599 million a year earlier. The growth was driven primarily by “strong average daily trading volumes across all venues,” from what chief executive Duncan Niederauer called “unseasonably strong trading volumes.”
In the middle of the quarter, Standard & Poor’s downgraded U.S. debt, for the first time. That August 4 announcement led to record trading volumes in many markets over the next fortnight.
Toward the end of the quarter, events involving the European debt crisis sparked market volatility.
That lead to a 27% increase in trading revenue.
In information technology, the $12 million increase in revenue was driven by more customers connecting to NYSE Euronext’s new marketplaces at data centers in Mahwah, N.J., and Basildon, England. The company invested $500 million in the capital projects that led to their launches a year ago.
Operating margins in information technology reached 25%, the firm said.
NYSE Technologies is “continuing to work with several tier 1 global banks on potential managed services projects,’’ where they would outsource their trading infrastructure to NYSE Euronext, the company also said.
In the meantime, NYSE Technologies is building regional liquidity hubs in Latin America, Toronto and Tokyo for customers to access NYSE markets through its Secured Financial Transaction Infrastructure network.
Overall, NYSE Euronext reported net income of $200 million, or $0.76 per diluted share, for the third quarter of 2011, compared to net income of $128 million, or $0.49 per share, for the third quarter of 2010.
Results included $29 million of pre-tax merger expenses and exit costs. This included $19 million related to the proposed merger with Deutsche Boerse AG, which the company hopes to complete at the turn of the year.
-- This article first appeared on Securities Technology Monitor.
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