1. ‘RTB in in the derivatives market’
A story from open outcry to screen trading
Frank Ammerlaan, Head of Business Development Benelux

2. Disclaimer
NYSE Euronext refers to NYSE Euronext and its affiliates and references to NYSE Euronext in this
publication include each and any such company as the context dictates. NYSE Liffe is the brand name of the
derivatives business of NYSE Euronext, comprising the derivatives markets in Amsterdam, Brussels, Lisbon,
London and Paris; and the futures markets in the U.S. All proprietary rights and interest in this publication
shall be vested in NYSE Euronext and all other rights including, but without limitation, patent, registered
design, copyright, trademark, service mark, connected with this publication shall also be vested in NYSE
Euronext. No part of this publication may be redistributed or reproduced in any form or by any means or used
to make any derivative work (such as translation, transformation, or adaptation) without written permission
from NYSE Euronext. NYSE Euronext shall not be liable (except to the extent required by law) for the use of
the information contained herein however arising in any circumstances connected with actual trading or
otherwise. Neither NYSE Euronext, nor its servants nor agents, is responsible for any errors or omissions
contained in this publication. This publication is for information only and does not constitute an offer,
solicitation or recommendation to acquire or dispose of any investment or to engage in any other transaction.
All information, descriptions, examples and calculations contained in this publication are for guidance
purposes only, and should not be treated as definitive. Those wishing either to trade in any products available
at NYSE Liffe or to offer and sell them to others should consider both their legal and regulatory position in the
relevant jurisdiction and the risks associated with such products before doing so. Potential users of NYSE
Liffe contracts should familiarise themselves with the full contract specification of the product concerned and
any associated information. You should always bear in mind that: the value of investments and any income
from them may go down as well as up; you may not get back all of your original investment; past performance
is not necessarily a guide to future performance; rates of exchange may cause the value of underlying
investments to go up or down; tax arrangements may change and all stock market based investment is
exposed to a degree of risk.
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3. Content
 An overview of NYSE Euronext
 A brief History
 Open Outcry in our Industries
 Driving Factors for change
 First steps towards efficiency
 The Advertising Ecosystem today
 What’s next ?

4. The world’s largest integrated Exchange group
offering multi-geography, multi-asset class trading
Listing Venue
Trading Platform
Americas Europe Strategic Relationships
Qatar Exchange
The World’s Largest Equity Market Continental Europe’s Largest Equity Market
• 20% Equity Stake
Warsaw Stock Exchange
NYSE NYSE Amex NYSE Arca NYSE Euronext NYSE Alternext NYSE Liffe
 Cash Equities  Cash Equities  Cash Equities  Cash Equities  Cash Equities  Derivatives
 ADRs  ADRs  ADRs  DRs  DRs
Global Partners
 ETFs  Fixed Income NYSE Arca
 ETFs Europe
NYSE Bonds NYSE Amex
Options  Certifications  Cash Equities  Abu Dhabi Securities Market
 Bonds MTF NYSE Arca
 Warrants  Bursa Malaysia
 Equity options Options
NYSE Bond  Dalian Commodities Exchange
NYSE Liffe US  Equity options
Match  Philippines Stock Exchange
 Derivatives  Bonds MTF  Tel Aviv Stock Exchange
 Tokyo Stock Exchange
Under US Under EU Self SmartPool
Regulation Regulation Regulation  Dark Pool
4

5. Evolution of our markets
• Our global marketplace helps deepen liquidity, allowing realisation of more
potential trading opportunities
Past 2009 - 2011 2012 and Beyond
Four Separately Operated Largest Market in Europe: Developing the Vision of Uniting the World’s
National Markets First Integrated International Two Largest Capital Markets
Market in World
• Will attract more investors and deepen liquidity pool for listed companies
• Concentrates liquidity and order flows • Will further reduce costs to investors and improve market efficiency
• Enhances transparency and pricing
Investors
Investors • Benefits both issuers and investors Investors
Investors Investors
Investors NYSE NYSE
Amsterdam Liffe Alternext NYSE
NYSE NYSE
Amex Universal Liffe Alternext
Brussels A Single Order Book NYSE
Paris NYSE Trading
Integrated Electronic Liffe NYSE NYSE Arca
Market US Platform Euronext Europe
NYSE
Lisbon Arca
NYSE NYSE
NYSE SmartPool
Investors Arca BondMatch
Euronext Europe
Investors Investors Investors
Investors
5

6. Evolution of your market
• It’s a global marketplace for Ads that deepens liquidity, allowing realisation
of more potential trading opportunities
Websites / Portals Ad Networks RTB / Exchanges
6

7. History of the Amsterdam Exchange
1602: First ‘printed’ share (VOC).
1876: Founding of the
“Vereniging voor de Effectenhandel”
1913: Stock Exchange moves into Beursplein 5.
VOC ‘Actiën’ 1606 – ‘oldest share in the world’
1978 1997 2000 2002 2007
7

8. Trading at Beurs van Berlage (1978 - 1986)
- Open outcry
- ADV contracts per day:
1978: 1.000
1982: 5.900
1984: 30.000
1987: 50.000

9. Trading at Rokin (1987 - 1998)
- Open outcry
- ADV contracts per day:
1990: 44.000
1992: 45.000
1994: 55.000
1996: 113.000
1998: 257.000

10. Trading: 1987 – 1997 (I)
TM

Sold !

11. Buying Online Ads in the past...

12. Selling Online Ads 1999 - 200?
Working / Not working
Sales Rep.
Creative Agency
Tags $$$ ?
Invoice
Backoffice Agency Advertiser
Ad Opps 
Sold !
Excel
Sales Assistant IO
Publisher. Media Buyer

13. Challenge: Connecting the isolated

14. Driving factors for change in our industry
 Efficiency
- less paperwork, errors, cost, stress, manual work
 Consolidation
- economy of scale, local markets become global
 Lower the barriers for entry
- an open market for every kind of demand big or small
 Competition
- competition creates better prices
 Innovation
- stay ahead of the game

15. Trading: 1987 – 1997 (II)
TM

Sold !
octopus

16. Process from floor trading to full screen trading
 SWITCH : System Which Incorporate Trading CHoices (phased scenario)
 Phases in SWITCH:
0: CTCI: Electronic messaging between banks and Exchange (Apr ‘97)
I : Central Order Database (Jun ‘97)
II: Automated Trade Confirmation (Nov ‘97)
SAO: Semi Automatic Orderbook (Feb ‘98)
III: EOB: Elektronic Orderbook (Jul ‘98)
IV: Autoquote (Feb ‘99) and SOEX: Small Order Execution (Jun ‘99)
V: Handheld Terminals (Nov ‘99) and Hit & Lift (Feb ‘00)
VI: Future trading to full screen trading (Aug ‘00)
Option trading to full screen trading (phased approach) (Dec ‘02)

17. Trading: 1997 - 2000

Sold !
3.00
 3.50

18. Trading: 2001 – 2008
 3.00
3.50

19. A First step: 2001 - 2007

20. Life becomes a little easier ....
Back-office
Excel

Advertiser Media Buyer IO
Sales House
Central Adserving
Cars Sports
Kids
Fashion Fun

21. Trading at Beursplein 5
- Screen trading
- ADV contracts per day:
2000: 230.000
2002: 304.000
2004: 310.000
2006: 497.000
2008: 555.000
2010: 482.000
2012: 350.000

22. Screen Trading: 2003 onwards
ELPS: Euronext Liquidity Providing System for Screen Strading
Primary Market Makers
PMM
Quote all series
PMM
RD PMM
CMM
CMM Competitive Market Makers
CMM
Qoute ATM short terms
CMM
Trader Trader CMM
Trader Trader CMM
Trader Trader CMM
Trader Trader
Trader No obligations
Trader
Trader Trader Traders

23. Ad Trading today

24. Automated Trading is now very much like.....
Stock = domain / publisher
Direct access to
all markets, local
& global

25. And it’s al real-time now...
Time = 0.000
Advertisers Visitor seconden
Offers
1 1. Visitor on page triggers
ad request to the
€1.00 exchange.
2
3 2. Profile made available
to all bidders by the
Offers exchange.
€1.10
3. Bids with and without
algorithm.
Offers
5
4. Highest bid wins
€1.25 impression.
5. The ad of the highest
4 bidder is shown on
page.
Time = 0.100 seconden
Ad
Server

26. Trading Desks = Stock Broker

27. Whats’ next ?
 Regulations
- EU increasingly monitoring the our automated trading
- EU inreasingly monitoring your use of DATA ?
 Need for Speed
- Traders want faster & smarter decision making / trading
- What’s the competitive advantage of Trading Desks ?
 Big Data
- Increasing amounts of data are send over to market participants
- What’s become the ‘oil’ of your industry ?
 Local = Global & Global = Local