Euronext Stock Exchange
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uronext exchange is a pan-European securities
exchange; the largest exchange in continental Europe, 6th largest in the world, headquartered in Amsterdam, Netherlands,
Prime currency- EURO, representing
a combined market capitalization
of €4.13 trillion or US$ 4.65
trillion as on April 2018,with over
6.74 billion US$ or €6 billion of
securities traded daily. The exchange offers products and services
in Paris, Amsterdam, Brussels,
Lisbon and London.
Euronext Operations, Products
& Services:
The Euronext exchange offers trading for stocks of companies listed across its
markets, in addition to bonds,
ETFs, equity derivatives, foreign exchange derivatives, commodities, indices,
structured notes, warrants and certificates. The exchange includes listings
of more than 1,300
stocks; 4,400
fixed-income securities; 500
mutual and exchange traded funds; 20 indices; nine regional commodities; 6 European region
currency contracts and 5
categories of equity derivative contracts…The listed company issuers are 1240
as on 2018.
Euronext other Services:
Alternext
:
Alternext
is a specialised market segment for small- and medium-sized companies that lack
resources to satisfy requirements of the larger regulated market. The segment
includes more than 180 listed
companies with a total market capitalization of €8
billion.
EnterNext:
EnterNext is the Euronext subsidiary, created in 2013,
dedicated to financing and promoting small and medium-sized companies (SMEs) in
the financial markets. It comprises the 750 listed companies on Euronext
markets in Belgium, France, the Netherlands and Portugal.
Indices
:
Euronext manages
the following main national European equity indices: AEX-index
(Dutch Stocks Benchmark), BEL 20 (Belgian Stocks Benchmark), CAC 40 (French
Stocks Benchmark) and PSI
20 (Portuguese Stocks Benchmark), ISEQ 20, Euronext 100, Next 150 (fr)
Euronext Universal Trading Platform:
In
2010, Euronext introduced
its Universal Trading Platform, an electronic trading service, to facilitate
trading across markets and products. Since its launch, the company has made the
service available to operations in Europe,
Africa and the Middle
East, including exchanges in the cities of Warsaw,
Amman, Beirut, Muscat and Tunis.
History of Euronext
The
Euronext began taking shape in 2000 following a merger between the Brussels,
Amsterdam and Paris stock exchanges, and a later addition of the Lisbon Stock
Exchange. The origins of what is today known as Euronext dates to 1611 with the
opening of the Amsterdam stock exchange, which was the first of its kind in the
world.
The
Amsterdam exchange got its start when the Verenigde
Oostindische Compagnie, a large shipping company doing business in the Far
East, sold shares as a manner to finance its operations. Business on the
exchange grew to include commodities and other financial instruments such as
options.
Although
shares were also traded in France as early as 1540, the first official
exchanges in France and Belgium were established only in 1801 under the rule of
Napoleon Bonaparte. The Lisbon Stock Exchange initially began operating in 1769
as the Assembleia
dos Homens de Negócio, and by 1999 it had evolved into the Bolsa
de Valores de Lisboa e Porto (BLVP).
Following
its merger in 2000, the Euronext group in 2001 acquired the London
International Financial Futures and Options Exchange; and in 2002 it acquired
the Lisbon Stock Exchange. In May 2006, as part of an effort of fend off a
possible purchase of Euronext by Nasdaq,
NYSE Group entered a merger agreement with Euronext in a transaction
worth US$10 billion.
In
2008 and 2009, NYSE Euronext developed its Universal Trading Platform, an
electronic trading platform for bond, equities, options and futures markets.
The new holding company combining those businesses was named NYSE
Euronext, and it was subsequently listed on the New York Stock Exchange and
Euronext Paris.
In
2010, NYSE Euronext launched Euronext
London, a London-based securities market aimed at attracting international
issuers. The following year, German exchange group Deutsche
Börse entered talks for a proposed US$9.53 billion purchase of NYSE
Euronext that would create the world's largest multi-market trading exchange.
In December 2011, Deutsche Börse obtained approval from U.S. antitrust
authorities to go ahead with the acquisition. However, the European Union
blocked the planned acquisition of NYSE Euronext in February 2012 amid concerns
the exchange would control more than 90% of the trade in European derivatives.
In
November 2013, the global market and clearinghouse operator Intercontinental
Exchange (ICE) acquired NYSE Euronext for $8.2 billion. Following the
acquisition, ICE separated the continental European operations of NYSE Euronext
and Euronext London from its other operations to launch a public offering of a
newly formed entity named Euronext
N.V. in June 2014. The company's shares were priced at €20 each to raise
US$1.9 billion. ICE, however, maintained Liffe and NYSE as
separate entities.
In
order to stabilise Euronext, a consortium of 11 investment groups took a stake
in the company. These investors, referred to as "reference
shareholders," own 33.36% of Euronext's capital and agreed to
maintain a three-year lockup period: Euroclear, BNP Paribas, BNP Paribas
Fortis, Société Générale, Caisse des Dépôts, BPI France, ABN Amro, ASR, Banco
Espirito Santo, Banco BPI and Belgian holding public company SFPI.
Euronext Markets:
1) Euronext Amsterdam/ Amsterdam Stock Exchange (Netherland)
Website:
2) Euronext Brussels/ Brussels stock Exchange (Belgium)
3) Euronext Dublin/Irish Stock Exchange (Ireland)
Website:
4) Euronext Paris/Paris Bourse (France)
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Website:
Competitors
Some of the relevant international
competitors for Euronext in equities and derivatives markets include: Deutsche
Börse, London Stock Exchange Group, Chicago Mercantile Exchange, BATs Global
Markets and Nasdaq OMX Group.
Euronext NV operates with a market share of
14.7% in Europe and the U.K. It's the third-largest securities exchange in
those markets behind BATs with 24.4%, and the London Stock Exchange with 18.9%.
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