NYSE Euronext has cut its proposed stake in a Qatar cash and derivatives exchange to 20% from 25%.
In July 2008, NYSE Euronext announced a strategic partnership with the State of Qatar to create a new integrated cash and derivatives exchange in Doha, beating the London Stock Exchange to the deal.
Under the new restructured agreement, announced in Q1 report: NYSE Euronext will now purchase a 20% stake in the Qatar Securities Market (QSM) for USD200 million, with installment payments of USD40 million over a period of four years from closing. The restructured agreement is now expected to close in the next few months.
NYSE Euronext is also cutting costs heavily. The exchange is seeking approval to cut 200 European jobs in Q2, saving approximately USD23 million by 2010, according to Chief Financial Officer Michael Gelzeiler. A drive towards unifying technology across all its markets will also save USD250 million by 2010.
Q1 profits were down USD104 million, due to decreased trading volume in Europe and increased competition in the US.