Cash trading: With 219.5 million trades (up 35.1% compared to 2005), Euronext confirmed its leading position in Europe as the largest exchange in terms of number of trades and value traded on its central order book. It established a new all-time record with an average daily number of trades of 860,692 growing by 36.2% compared to 2005. The business unit has recorded its third consecutive yearly increase in revenues, with a total of €286.9m, up 33.0% year-on-year.
Listing fees: Euronext ended 2006 with 142 new listings representing €21.4bn of capital raised and an additional market capitalization of €96.0bn. It has been the busiest year since the creation of Euronext both in terms of number and value of IPOs. 57 of these IPOs took place on Alternext. This new market totalled 75 listed companies at the end of 2006, just 18 months after its creation. The revenues for the full year 2006 amounted to €55.6m, i.e. 11.9% below 2005. As a reminder, 2005 revenues were significantly improved by 2 of the biggest IPOs in the world, EDF and GDF.
Derivatives trading: Favourable market conditions on derivatives markets enabled Euronext.liffe to deliver a strong performance and to break a new record of activity. All product lines progressed on a yearly basis: Equity products +23%, interest rate products +19% and commodities +16%, leading to an overall increase in volume of 21% to 730.3 million of contracts traded. Our recent OTC initiative, Bclear confirmed its success after just one year in existence with 51.6 million contracts traded during the year. The overall revenues of the business unit out-performed last year by 18.0% reaching €391.6m.
MTS fixed income: MTS revenues are 51% proportionally consolidated. In 2005, only one month of MTS revenues were accounted for. On a comparable basis and for information purposes only, the MTS fixed income revenues increased by 2.4% from 2005 to 2006.
Settlement and custody: The decrease in revenues is explained by the sale of CIK to Euroclear as of 1 January 2006. The segment solely consists of Interbolsa, the Portuguese central securities depository, whose yearly revenues remained flat at €14.5m despite a substantial fee decrease at the beginning of the year.
Information services: The business unit performed well in 2006 with total revenues of €112.0m increasing by 19.7% compared to 2005, delivering another all-time record. The traditional business progressed due to the number of data packages sold throughout the world. The business unit initiated a strategic move into new services through the acquisition of CompanyNews and Hugin in order to take benefits from the European Directive on Transparency and MiFID.
Sales of developed software: In 2006, this revenue stream consists only of GL Trade turnover whereas in 2005 it also included Liffe Market Solutions (LMS). GL Trade revenues for the full year went up from €179.0m in 2005 to €184.6m in 2006, i.e. a 3% growth. The company made 2 acquisitions during the year, Emos Systems in July 2006 and OBMS products from Nyfix Overseas in August 2006. A third acquisition, FNX solutions is currently in progress.
Other Income: Other revenues increased by 52.7% from €21.5m to €32.9m. This is explained by the full year effect of services charged to LMS in London, improved rental income in continental Europe and full year consolidation of MTS revenues.
