NYSE Euronext (NYSE:NYX) CEO Looking to Derivatives for Revenue Growth

Chief Executive Officer of NYSE Euronext (NYSE:NYX), Duncan Niederauer, said he's looking towards derivatives as the major driver of revenue in the years ahead.

Niederauer said he has felt for some time that the success of NYSE Euronext is depending on trading and clearing derivatives, and the specific market he's looking at to succeed in that regard is the United States and Europe. Nidederuer added he will take direct oversight of the unit going forward.

There should also be lower fixed cost in 2011, according to the CEO, as their recent acquisitions will have been absorbed into the company and that will lower expenses and increase profits for them.

Another cost factor expected to lessen expenses has been the recent shuffling of some of its top management team, where Lawrence Leibowitz was named as the new chief operating officer and Dominique Cerutti was installed as president.

Fixed costs in 2011, according to chief financial officer Michael Geltzeiler, should be under $1.65 billion, although they could be as high as $1.77 billion for 2010, higher than the $1.68 billion in 2009.

Now that those moves are in place and costs evidently where management wants them, they are focusing on growing the revenue of the company, the reason for the attention and focus on derivatives.

Leibowitz will head up the cash equities and listing business while Cerutti will deal with the technology and data business, which while smaller, has a lot of potential to grow fast for them.

Derivatives accounted for close to 30 percent of all revenue at NYSE Euronext in 2009, which is now higher than revenue generated from trading stocks by them.

NYSE Euronext is the company which manages the New York Stock Exchange and other trading platforms in Europe.