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NYSE Euronext, Inc.
Type Public (NYSENYX, Euronext: NYX)
Founded April 4, 2007
Headquarters New York City, New York, United States
Key people Duncan Niederauer (CEO), Jan-Michiel Hessels (Chairman of the board)
Industry Financial services
Services Equity trading platforms, securities exchanges, derivatives, futures and options markets, market data
Revenue US $4.703 billion (2008)[1]
Operating income (US $588 million) (2008)[1]
Net income (US $738 million) (2008)[1]
Employees 3,760 (FTE, 2008)[1]
Divisions New York Stock Exchange, Euronext, NYSE Arca, Euronext.liffe, Powernext, Alternext
Website www.nyseeuronext.com

NYSE Euronext, Inc. (formerly NYSE Group, Inc. and Euronext N.V.) (NYSENYX) is a Euro-American for-profit corporation that operates multiple securities exchanges, most notably Euronext, New York Stock Exchange (NYSE), and NYSE Arca (formerly known as ArcaEx). NYSE Group also operates NYSE Regulation, which is a non-profit Self-Regulatory Organization that oversees securities firms and companies listed on the New York Stock Exchange and NYSE Arca.

Contents

Overview

NYSE completed its acquisition of Archipelago Holdings via a "double dummy" merger on March 7, 2006 in a 10 billion USD deal to create the NYSE Group. The NYSE Group became a for-profit corporation and began trading publicly on its own stock exchange on March 8, 2006 under the NYX ticker. Owners of the 1,366 NYSE seats received 80,177 shares of NYSE Group stock plus US$300,000 in cash and US$70,571 in dividends for each seat. NYSE Group merged with Euronext on April 4, 2007 to form the first global equities exchange. NYSE Regulation subsequently merged with NASD to form FINRA on July 26, 2007 and is therefore no longer managed by the exchange.

Merger of Euronext and NYSE Group

Due to apparent moves by NASDAQ to acquire the London Stock Exchange, NYSE Group offered 8 billion euros in cash and shares for Euronext on May 22, 2006, outbidding a rival offer for the European Stock exchange operator from Germany's Deutsche Börse, the German stock market.[2] Contrary to statements that it would not raise its bid, on May 23, 2006, Deutsche Börse unveiled a merger bid for Euronext, valuing the pan-European exchange at US$11 billion (€8.6bn), €600 million over NYSE Group's initial bid. [3] Despite this, NYSE Group and Euronext penned a merger agreement, subject to shareholder vote and regulatory approval. The initial regulatory response by SEC chief Christopher Cox (who was coordinating heavily with European counterparts) was positive, with an expected approval by the end of 2007.[4] The new firm, tentatively dubbed NYSE Euronext, would be headquartered in New York City, with European operations and its trading platform run out of Paris. NYSE CEO John Thain, who would head NYSE Euronext, intends to use the combination to form the world's first global stock market, with continuous trading of stocks and derivatives over a 21-hour time span. In addition, the two exchanges hoped to add Borsa Italiana (the Milan stock exchange) into the grouping. On June 23, 2007, the Borsa Italiana was however sold to the London Stock Exchange.[5]

Deutsche Börse dropped out of the bidding for Euronext on November 15, 2006, removing the last major hurdle for the NYSE Euronext transaction. A run-up of NYSE Group's stock price in late 2006 made the offering far more attractive to Euronext's shareholders.[6] On December 19, 2006, Euronext shareholders approved the transaction by a 98.2% margin. The remainder voted in favor of the Deutsche Börse offer. Jean-Francois Theodore, the Chief Executive Officer of Euronext, stated that they expected the transaction to close within three or four months.[7] Some of the regulatory agencies with jurisdiction over the merger had already given approval. NYSE Group shareholders gave their approval on December 20, 2006.[8] The NYSE consummated its US$11 billion takeover of Paris-based exchange operator Euronext NV at ceremonies in the U.S. and Europe on April 4, 2007. [9]

Formation of NYSE Technologies

NYSE Technologies is the commercial technology division of NYSE Euronext. NYSE Technologies was launched in January 2009, incorporating all the internal technology divisions of NYSE Euronext, NYSE Euronext’s Market Data division and a number of acquisitions including: The Securities Industry Automation Corporation (SIAC) in November 2006,[10] TransactTools in December 2006, [11] Wombat Financial Software in January 2008, [12] and Atos Euronext Market Solutions in August 2008. [13] In August 2009, NYSE Euronext announced that it was acquiring NYFIX - subject to NYFIX shareholder and regulatory approvals. [14]

Locations

Below is a list of major NYSE Euronext locations:


NYSE Euronext also owns 20% of the Doha Securities Market.

References

  1. ^ a b c d "Annual Report 2008". NYSE Euronext. http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzMyNTk4fENoaWxkSUQ9MzE0OTc0fFR5cGU9MQ==&t=1. Retrieved 2009-09-13.  
  2. ^ "NYSE and Euronext 'set to merge'". BBC News. 2006-05-21. http://news.bbc.co.uk/1/hi/business/5002438.stm. Retrieved 2006-05-22.  
  3. ^ "Deutsche Boerse outbids NYSE for Euronext merger". BBC News. May 23, 2006. http://news.bbc.co.uk/2/hi/business/5007230.stm. Retrieved 2006-05-23.  
  4. ^ "NYSE, Euronext Set Plan to Form A Markets Giant". The Wall Street Journal. June 2, 2006. http://online.wsj.com/article/SB114919826887369084.html. Retrieved 2006-06-02.  
  5. ^ "London Stock Exchange buys Borsa". BBC News. June 23, 2007. http://news.bbc.co.uk/1/hi/business/6233196.stm. Retrieved 2007-06-23.  
  6. ^ "Deutsche Börse Is Exiting Euronext Chase". The Wall Street Journal. 2006-11-15. http://online.wsj.com/article/SB116355794762023471.html. Retrieved 2006-11-15.  
  7. ^ "Euronext Shareholders Approve Acquisition by NYSE". The Wall Street Journal. 2006-12-19. http://online.wsj.com/article/SB116653086274154451.html. Retrieved 2006-12-19.  
  8. ^ "Big Board Holders Back Euronext Deal". The New York Times. 2006-12-21. http://www.nytimes.com/2006/12/21/business/worldbusiness/21nyse.html?ref=worldbusiness. Retrieved 2006-12-21.  
  9. ^ "Key Developments". Reuters. April 3, 2007. http://www.investor.reuters.wallst.com/stocks/key-developments.asp?rpc=66&ticker=NYX&timestamp=20070403185600. Retrieved 2007-05-11.  
  10. ^ "NYSE agrees to buy one-third stake in SIAC for $40 mln". Marketwatch.com. 2006-10-25. http://www.marketwatch.com/story/nyse-agrees-to-buy-one-third-stake-in-siac-for-40-mln. Retrieved 2006-10-25.  
  11. ^ "Nyse buys TransactTools". Finextra.com. 2006-12-13. http://www.finextra.com/fullstory.asp?id=16264. Retrieved 2006-12-13.  
  12. ^ "NYSE Euronext to Acquire Wombat Financial Software". mondovisione.com. 2008-01-14. http://www.mondovisione.com/index.cfm?section=news&action=detail&id=71883. Retrieved 2008-01-14.  
  13. ^ "Atos Origin, NYSE Complete AEMS Joint Venture Transaction". huliq.com. 2008-08-12. http://www.huliq.com/66280/atos-origin-nyse-complete-aems-joint-venture-transaction. Retrieved 2008-08-12.  
  14. ^ "NYSE Euronext to pay 95 pct premium for NYFIX". reuters.com. 2009-08-27. http://www.reuters.com/article/mergersNews/idUSN2730860320090827. Retrieved 2009-08-27.  

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