A Pan European Exchange

With a market capitalization of $3.4 trillion, Euronext has many of Europe’s most prominent national indices including France’s CAC 40, Belgium’s BEL 20, and the PSI 20, Portugal’s bluechip bourse.

Euronext is the first cross-border exchange in Europe formed by merging the exchanges of Belgium, France, the Netherlands, Portugal and the UK. It operates four national regulated securities and derivatives markets in Amsterdam, Brussels, Lisbon and Paris, and the UK-based regulated securities market, Euronext London.

Genesis
In 2000, Europe’s three major national exchanges merged to set up the first pan-European exchange, Euronext. The merger allowed access to shares on the Amsterdam, Brussels and Paris markets through a unique single order book. Portuguese exchange BVLP joined the group in 2002, along with the London derivatives exchange LIFFE. In 2007, Euronext merged with the New York Stock Exchange, becoming NYSE Euronext. After the acquisition of NYSE Euronext by the US-based Intercontinental Exchange in 2013, NYSE Euronext became a subsidiary of ICE. In June 2014 following its IPO, Euronext re-emerged as a standalone entity, going back to its roots as the pan-European securities and derivatives exchange covering Euronext Amsterdam, Brussels, Lisbon and Paris, with a securities market in London.

FACT FILE

Founded 2000
Domestic market capitalization $3.4 trillion*
No of listed companies 1,053*
Value of share trading $132, 115 million*

EURONEXT KEY INDICES

CAC 40 It is a benchmark index of French stock market, and represents a capitalization-weighted measure of the 40 most significant values among the 100 highest market caps on the Euronext Paris.

AEX-Index It is a Netherlands stock market index and composed of a maximum of 25 of the most actively traded Dutch securities that trade on Euronext Amsterdam.

BEL20 It is the benchmark stock market index of Euronext Brussels, and comprises a minimum of 10 and a maximum of 20 companies traded at the Brussels Stock Exchange.

PSI-20 The PSI-20 is a benchmark Portuguese stock market index of companies that trade on Euronext Lisbon, and respresents a capitalization-weighted measure of the 20 highest market caps on the exchange.

 

Euronext manages a portfolio of more than 500 benchmark indices, including the benchmark AEX-Index (Netherlands), CAC 40 Index (France), BEL 20 (Belgium) and PSI-20 (Lisbon). These indices represent the performance of the Euronext markets, and measure investor sentiment about the financial markets and the state of the economy.

TRIVIA

First Company Shares
Corporate share trading began in Amsterdam in 1607, as a means of financing the transport of goods from the Far East by the Dutch East
India Company. Shares were subsequently followed by the first futures and options.

Birth of the Bourse
Belgium was the birthplace of the ‘Bourse’ concept. In the thirteenth century, merchants had come to the house of the van den Bürse family in Bruges to do business. The first purpose-built stock exchange building was constructed in Antwerp in the 1500s. The European country’s national exchange was set up in Brussels by the Napoleon Bonaparte government in the year 1801.

Forging France’s Markets
France’s key exchange Euronext Paris was formed from the merger in 1999 of the Paris Equities Market (SBF), the Nouveau Marché (SNM) and the French financial derivatives exchanges MATIF and MONEP.

Exchanges built for trade
In 1769, the Lisbon Stock Exchange was set up in a small tower on Lisbon’s Praça do Comércio, and a century later, the Porto Stock Exchange was created. The Lisbon and Porto Exchanges merged in 1999 to create the Bolsa de Valores de Lisboa e Porto.

A New London Market
Euronext London was created in 2010. It offers international issuers and investors an opportunity to raise capital and list and trade securities on a London market.

 

In terms of growth, the European exchange posted a 15.2 per cent decline in its third-quarter revenue. The fall in revenues was attributed to a drop in listing and trading volumes as uncertainty continued after Britain’s vote to leave the European Union. Euronext revenue fell to 112.8 million euros ($126.95 million) in the quarter ended September 30, from 133 million euros a year earlier.

 

Leading Capital Raising Centre
Euronext helps issuers benefit from its diverse listing services and its understanding of local markets, while its pan-European reach and international client base supports the European economy and drives economic growth.

The exchange also invests in providing services that smaller and medium-sized businesses (SMEs) need to finance their growth. Its subsidiary EnterNext, facilitates SMEs’ access to the markets, and helps small businesses gain unrivalled access to capital and services.

The bourse offers a platform through which companies access its European investor communities in Amsterdam, Brussels, Lisbon, London and Paris.

Its single Order Book helps issuers take advantage of Europe’s open market regulations and gives investors the widest choice of investment opportunities. Companies listed on Euronext’s regulated markets are subject to a number of EU rules applicable to all regulated markets within the EU.

It also provides markets with adapted regulation for smaller companies, such as Alternext, the Marché Libre in France and the Expert and Free Markets in Belgium. These markets are designed for small and medium-sized companies which look to access the financial market, and have different eligibility criteria to Euronext’s regulated markets.

(Based on secondary research)


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