NYSE Euronext, the pan European financial trading exchange, has ended a controversial outsourcing joint venture deal with Atos Origin.
Under the agreement NYSE Euronext will re-acquire ownership of the NSC cash trading and LIFFE CONNECT derivatives trading platform technology as well as Atos Euronext Market Solutions’ (AEMS) third-party exchange technology business for €275 million ($400m). Atos Origin will acquire the third party Clearing & Settlement and Capital Markets businesses from AEMS for $29 million.
The agreement brings to an end the relationship which began when the French, Dutch and Belgian stock exchanges were combined into NYSE Euronext. Reports say that the move comes at a time when Euronext and NYSE IT platforms are being integrated. Tarak Achiche, the head of Euronext’s information systems left the company in October this year. The integrated trading platforms were criticised earlier in 2007 after they crashed for 15 minutes on February 28, one of the busiest trading days of the year.
Philippe Germond, Chief Executive Officer of Atos Origin said, “The agreement is very
satisfactory for both parties, which will run IT activities that are core to their respective business. Atos Origin can thus turn to the future and pursue its strategy going forward to reinforce the company in businesses such as payment services in Europe where Atos Origin believes it has a role to play in the future.”
Jean-François Théodore, Deputy Chief Executive Officer of NYSE Euronext said, “Insourcing our technology gives us greater flexibility and a competitive advantage in a fast-moving exchange landscape where technology is key. Bringing the expertise of a large number of highly skilled IT personnel back in-house will enable us to better deliver on our commitments to provide our customers with more efficient trading services and to deliver IT synergies to our shareholders.”