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© NYSE Euronext. All Rights Reserved. Opportunities in European Commodities NYSE Liffe Soft & Agricultural Derivatives S&P Singapore Webinar, 7 April 2011

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Page 1: Opportunities in European Commoditiesus.spindices.com/documents/presentations/...This presentation may contain forward-looking statements, including forward-looking statements within

© NYSE Euronext. All Rights Reserved.

Opportunities in European CommoditiesNYSE Liffe Soft & Agricultural DerivativesS&P Singapore Webinar, 7 April 2011

Page 2: Opportunities in European Commoditiesus.spindices.com/documents/presentations/...This presentation may contain forward-looking statements, including forward-looking statements within

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Legal DisclaimerCautionary Note Regarding Forward-Looking Statements

This presentation 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 2007 ("document de référence") filed with the French Autorité des Marchés Financiers (Registered on May 15, 2008 under No. R.08-054), 2007 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 presentation speaks only as of this date. NYSE Euronext disclaims any duty to update the information herein.

Page 3: Opportunities in European Commoditiesus.spindices.com/documents/presentations/...This presentation may contain forward-looking statements, including forward-looking statements within

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NYSE Global Derivatives - Overview

NYSE Liffe Clearing NYPC

U.S. FuturesEurope U.S. Options

Page 4: Opportunities in European Commoditiesus.spindices.com/documents/presentations/...This presentation may contain forward-looking statements, including forward-looking statements within

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NYSE Liffe Commodities - Overview• NYSE Liffe is a world-leading provider of softs & agricultural commodity derivatives –

the futures contracts act as “price benchmarks” for their respective underlying physical markets– Global benchmarks = Cocoa, Robusta Coffee, White Sugar– European benchmarks = Milling Wheat, Feed Wheat, Rapeseed, Corn, Malting Barley– New contract – Skimmed Milk Powder (launched October 2010)

NYSE Liffe Commodity Derivatives: ADV & OI

Page 5: Opportunities in European Commoditiesus.spindices.com/documents/presentations/...This presentation may contain forward-looking statements, including forward-looking statements within

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Opportunities in Softs and AgriculturalsNew Horizons

• Food for fuel debate led to increased demand for land and agricultural products

• Continued strong growth in demand for corn and sugar based ethanol

• Credit and counter party default risk remains a concern in current market conditions

• Changing regulatory environment globally

• Strong increase in use of exchange listed futures and options on softs and agricultural products

Trading Opportunities• Market volatility: intra-day trading range = trading opportunities

• Active calendar spread market, especially during the roll period and certain key times of the growing season e.g. Dec/March in Cocoa, Nov/Jan in Robusta Coffee, March/May in White Sugar and May/Nov in Wheat

• Active arbitrage between US and European markets

• Majority of activity in NYSE Liffe softs and ags market is from commercial participants who use these contracts for hedging

Increased Activity• Volumes for Soft and Agricultural commodities traded at NYSE Liffe increased by 50% over past two years

• Particularly strong growth in futures and options on Milling Wheat over past three years

• 2010 vs 2009: Milling Wheat F&O + 120%

2009 vs 2008: Milling Wheat F&O +130%

2008 vs 2007: Milling Wheat F&O +57%

• Opportunity for funds and proprietary trading groups to increase activity and trade with commercial participants

Page 6: Opportunities in European Commoditiesus.spindices.com/documents/presentations/...This presentation may contain forward-looking statements, including forward-looking statements within

Commodity Indices & NYSE Liffe

• AUM in Commodities is estimated at around $370 billion

• Close to $200 billion of that is invested in commodity indices

• NYSE Liffe’s Milling Wheat & Rapeseed contracts are in the RICI®(Rogers International Commodity Index)

• NYSE Liffe’s Cocoa, Robusta Coffee, White Sugar, Milling Wheat & Rapeseed contracts are in the S&P WCI (World Commodity Index)

• Rapeseed and Milling Wheat now represent $125 million of new investment

• NYSE Euronext is looking to develop Exchange Traded Products on NYSE Liffe Commodities, both on individual contracts and within a larger basket

• This sector is fast growing and attracting new liquidity from investors who are looking for a flexible access to the commodity asset class.

Page 7: Opportunities in European Commoditiesus.spindices.com/documents/presentations/...This presentation may contain forward-looking statements, including forward-looking statements within

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Cocoa Futures & Options: Volume and OI

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Cocoa Futures Settlement PriceSecond Month Continuation Chart: Jan 08-Present

33 year price high of £2,450 per tonne reached on 25 June 2010

£/tonne

Page 9: Opportunities in European Commoditiesus.spindices.com/documents/presentations/...This presentation may contain forward-looking statements, including forward-looking statements within

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Cocoa Futures Intraday Price VolatilitySecond Month Continuation Chart: Jan 08-Present

Delivery MonthDelivery Month

High: 173 ticks (£173)Median: 33 ticks (£33)Low: 4 ticks (£4)

Page 10: Opportunities in European Commoditiesus.spindices.com/documents/presentations/...This presentation may contain forward-looking statements, including forward-looking statements within

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Cocoa Futures Arb: NYSE Liffe-ICE ($/tonne) ARB $ / £

Page 11: Opportunities in European Commoditiesus.spindices.com/documents/presentations/...This presentation may contain forward-looking statements, including forward-looking statements within

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Robusta Coffee Futures & Options: Volume and OI

*Robusta Coffee contract size was changed from 5 tonne to 10 tonne in March 09.

Page 12: Opportunities in European Commoditiesus.spindices.com/documents/presentations/...This presentation may contain forward-looking statements, including forward-looking statements within

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Robusta Coffee Futures Settlement PriceSecond Month Continuation Chart: Jan 08-Present$/tonne

Page 13: Opportunities in European Commoditiesus.spindices.com/documents/presentations/...This presentation may contain forward-looking statements, including forward-looking statements within

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Robusta Coffee Futures Intraday Price VolatilitySecond Month Continuation Chart: Jan 08-Present

High: 350 ticks ($350)Median: 70 ticks ($70)Low: 4 ticks ($40)

Page 14: Opportunities in European Commoditiesus.spindices.com/documents/presentations/...This presentation may contain forward-looking statements, including forward-looking statements within

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Coffee Arb: ICE-NYSE Liffe ($/tonne)

NYSE Liffe Robusta Coffee Contract vs. ICE Arabica Coffee Contract

Page 15: Opportunities in European Commoditiesus.spindices.com/documents/presentations/...This presentation may contain forward-looking statements, including forward-looking statements within

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Milling Wheat Futures & Options: Volume and OI

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Rapeseed Futures & Options: Volume and OI

Page 17: Opportunities in European Commoditiesus.spindices.com/documents/presentations/...This presentation may contain forward-looking statements, including forward-looking statements within

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Contact Details

UK USA

Aaron Gill Dayre Lashnits Head of Business Development US Commodity Sales Manager Commodity Derivatives, NYSE Liffe NYSE Liffe+44 (0) 207 379 2139 +1 312 442 6035 [email protected] [email protected]

Singapore

Elena Patimova Stefan UllrichBusiness Development Executive NYSE LiffeCommodity Derivatives, NYSE Liffe Singapore Representative Office+44 (0) 207 379 2125 +65 650 [email protected] [email protected]