Euronext

Nyse-n.gif

Euronext
Euronextlogo.jpg
Founded 2000
Headquarters Paris
Key People Dominique Cerutti, Chief Executive
Website www.euronext.com

Euronext is the first pan-European exchange operator, spanning Belgium, France, the Netherlands, Portugal and the UK. It was formed in September 2000, and brought together markets which dated back to the 17th century.[1] It operates Euronext Amsterdam, Euronext Paris, Euronext Brussels, Euronext London and Euronext Lisbon as subsidiaries.

It was taken over by the Intercontinental Exchange (ICE) on November 13, 2013 when the NYSE Euronext Group was acquired by ICE, and then was spun off in June 2014, when Euronext detached itself from ICE through an IPO.[2] ICE sold the last of its shares in Euronext, completing its exit from the business, in December 2014.[3]

The exchange offers equities as well as financial and commodities derivatives on its electronic platform.

Euronext ranked 24th among global derivatives exchanges by volume in 2016, with 126.2 million contracts traded, down from 135.5 million contracts a year earlier, according to Futures Industry Association annual volume figures.

History

Euronext was formed on Sept. 22, 2000. It was the first genuinely cross-border exchange organization. Following the merger of the Paris, Amsterdam and Brussels exchanges in 2000, Euronext acquired the London-based derivatives market, the London International Financial Futures and Options Exchange (LIFFE), and merged with the Portuguese exchange, BVLP, in 2002.

Euronext integrated its markets with strategic business units and harmonized market rules and regulatory framework.

Euronext’s first IT integration was completed in 2004, when a four-year migration plan resulted in harmonized IT platforms for cash trading (NSC) and derivatives trading (LIFFE CONNECT), providing market participants a single point of access to trading. Euronext’s IT structure was rationalized in 2005 with the creation of Atos Euronext Market Solutions (AEMS), an IT services-related vehicle between Euronext and Atos Origin. With its merger with the NYSE, Euronext and NYSE's technology was integrated into a new Universal Trading Platform (UTP), which it continued to use following the IPO, and split from ICE in 2014.

The Euronext initial public offering, held on June 19, 2014, sold for €20 apiece in an €845 million ($1.2 billion) transaction. The offering of 42.2 million shares, excluding stock allocated to the underwriters, was at the low end of the announced range of €19 to €25 euros. The stock trades in Paris, Amsterdam and Brussels under the “ENX” symbol.[4] The deal valued the exchange at 1.4 billion euros, or $1.9 billion.[5]

All of the 42,248,881 offered Shares were sold in the IPO, representing 60.36% of the total issued ordinary share capital of the company. [6] [7] Before the IPO, ICE sold a stake of 33.36% to a group that included Banco Espirito Santo SA, BNP Paribas SA (BNP), ABN Amro Group NV, Societe Generale SA (GLE) and Euroclear SA/NV, at a price of €19.20 per share.[8] [9]

ICE separated NYSE and its derivatives exchange Liffe from Euronext ahead of the planned IPO. [10]

In preparation for the "demerger" from ICE, Euronext reorganized its business and management team, promoting Amaury Dauge, its head of corporate planning, to the role of chief finance officer. [11] It also named Anthony Attia as chief executive of Euronext Paris, a role that will be independent of the holding company for the first time.

Volumes

Year Total Annual Volume* Percent Change
2016 126,241,982 (-)6.8%
2015 135,515,683 (-)5.9%
2014 144,058,876 (-)2.2%
2013 147,855,797 --

Products and Services

Euronext's total product offering includes equities, exchange traded funds, warrants & certificates, bonds, derivatives, commodities and indices.[12]

On May 1, 2014, Euronext announced that it would launch central clearing to facilitate the trading of Exchange for Physicals (EFP) on index futures. The service will be available first on CAC 40® and AEX-Index® Futures and is expected to be fully operational in the first quarter 2015. The EFP trading will use LCH.Clearnet as the CCP.[13]

On July 16, 2014 Euronext announced the launch of weekly expiry dates on its CAC40 and AEX future contracts. This initiative is the first of its kind in Europe. It is designed to complement the traditional monthly or quarterly expiry. The launch is planned for the fourth quarter of 2014.[14]

On Oct. 8, 2014, the exchange announced that it had received approval from the SEC to offer Dutch and Belgian equity and equity-index options to certain eligible US investors. It also received an extension to the current arrangements on equity option contracts available for trading on Euronext Paris. Qualified US investors are already able to trade index futures on the AEX, CAC40, BEL 20 and all Euronext commodity products.[15]

In April 2015 Euronext announced plans to launch an Inter-Commodity Spread facility at the end of the month to enable customers to trade spreads between its main wheat contract and it's new No. 3 premium wheat contract, which began trading in March 2015. The facility is intended to boost liquidity in the No. 3 contract. The No. 2 contract is a price benchmark in Europe.[16]

On June 1, 2015, Euronext announced the launch of three country indices: the Euronext Germany Index GR (ENDEG); the Euronext Italy Index (ENITI); and the Euronext Spain Index (ENESI). The indices will serve as the underlying for new index futures and index options, which will be available for trading in the third quarter of 2015. The country indices are composed of the 30 companies with the highest free float market capitalization listed on the main markets of the respective country, with a free float higher than 15 percent and a 12 month velocity score of 20 or more.[17]

On September 28, 2015, Euronext announced the launch of the Euronext BeNe 40 Equal Weight Index, composed of the 40 most traded companies included in the Belgian and Dutch markets, the BEL 20® and AEX® indices. The index is designed to act as an underlying for exchange traded funds (ETFs) and other investable products, such as structured products.[18]

On October 26, 2015, Euronext announced the launch of AtomX, a new service designed for investors looking to bilaterally negotiate trades. AtomX will allow users to customize and trade options and futures, each of which will be cleared through LCH Clearnet. The launch came at a time when regulators were calling for more compliance and transparency in the clearing of over-the-counter derivatives.[19]

On May 10, 2016 Euronext announced plans to launch the first physically-deliverable futures contract for nitrogen solution in the fall of 2016. The contract is aimed at the European market and intended to complement the group’s commodity futures offering.[20]

On February 15, 2017 Euronext said it would launch a block trading services for large orders in European equities in mid-2017, using technology from New York-based AX Trading. The service will combine a continuous order book with auctions and both conditional and firm order types.[21]

Key People

References

  1. About Us. Euronext.
  2. Euronext Detaches From ICE Through $1.2 Billion IPO. Bloomberg.
  3. ICE Sells Remaining Euronext Stake, Profiting From 23% Rally. Bloomberg.
  4. Euronext Detaches From ICE Through $1.2 Billion IPO. Bloomberg.
  5. I.P.O. Values Euronext Exchange Operator at $1.9 Billion. The New York Times.
  6. Euronext IPO priced at €20 per share. ICE.
  7. Intercontinental Exchange to Spin Off Euronext. The New York Times.
  8. ICE Plans Euronext IPO Before Summer After Partial Sale. Bloomberg.
  9. 8 core investors back Euronext listing. Business World.
  10. Euronext reports first-quarter profit of $36 mln ahead of IPO. Reuters.
  11. Euronext reshuffles management ahead of IPO. The Financial Times.
  12. About Euronext. Euronext.
  13. Euronext launches world's first index based Exchange for Physicals CAC 40® INDEX FUTURES AND AEX-INDEX® FUTURES. NYSE Euronext.
  14. Euronext launches weekly expiry dates on CAC40® and AEX® futures. Euronext.
  15. Euronext opens Dutch and Belgian equity options markets to US investors. Euronext.
  16. Euronext to offer wheat spread trading to boost new contract. Reuters.
  17. Euronext launches country indices for Germany, Italy and Spain. Euronext.
  18. Euronext launches the Euronext BeNe 40 Equal Weight Index. Euronext.
  19. Euronext Unveils AtomX Service for OTC Trading. Finance Magnates.
  20. Euronext Launches its First Nitrogen Fertiliser Futures Contract. Euronext.
  21. Euronext plans European block trading service. Finextra.
Last modified on 20 March 2017, at 13:21