Euronext

What Is Euronext?

Euronext is the largest stock exchange group in Europe, and one of the largest in the world. It was initially made through the mergers of the Amsterdam, Paris, and Brussels stock exchanges in 2000.

Throughout the long term, it has since merged with several different exchanges, most eminently the New York Stock Exchange (NYSE), before itself being acquired by the Intercontinental Exchange (ICE). Yet again in 2014, Euronext was veered off to turn into an independent entity.

Since becoming independent, the organization has developed its presence, consolidating the Irish Stock Exchange and the Italian stock exchange to make Euronext Dublin in 2018 and Euronext Milan in 2021.

Figuring out Euronext

Euronext was shaped in 2000 with the merger of three national European exchanges: Paris, Amsterdam, and Brussels. It later acquired the Portuguese stock exchange and the London International Financial Futures and Options Exchange (LIFFE), growing its offerings to incorporate equities, exchange traded funds (ETFs), warrants and certificates, bonds, derivatives, commodities, and indices.

It keeps up with headquarters in Amsterdam with major offices in Brussels, London, Lisbon, Dublin, Oslo, Milan, and Paris. Starting around 2021, Euronext listed 1,900 issuers addressing more than \u20ac6 trillion (euros) in market capitalization.

A portion of its more eminent benchmark equity indexes include:

AEX in Amsterdam
BEL 20 in Brussels
CAC 40 in Paris
PSI 20 in Lisbon
Euronext 100 — a container European blue-chip index

Timetable of Euronext's Milestones

2000: Euronext NV was shaped by consolidating the stock exchanges of Paris, Brussels, and Amsterdam.
2002: Euronext buys LIFFE and the Portuguese stock exchange.
2005: Alternext made.
2007: Euronext converges with New York Stock Exchange to make NYSE Euronext.
2010: Euronext London made.
2013: Intercontinental Exchange (ICE) buys NYSE Euronext.
2014: Euronext reappears from ICE by means of an initial public offering (IPO). (ICE retained ownership of the New York Stock Exchange and LIFFE.)
2018: The Irish Stock Exchange joins Euronext as Euronext Dublin.
2020: Euronext Securities Copenhagen turns out to be part of the network of Euronext CSDs.
2021: The Borsa Italiana stock exchange in Milan becomes Euronext Milan.

Corporate Services

Euronext gives its listed companies different services to address their necessities. These remember services for two broad categories:

Investor relations and communications
Government and compliance.

Under investor relations and communications, Euronext gives advisory on environment, social, and corporate governance (ESG) practices, assisting with drawing in new investors and work on a company's profile in the market. Euronext gives shareholder analysis, post-posting advisory, investor relations management, and webcast arrangements.

Under the government and compliance category, Euronext assists listed companies with liability logs, trade logs, and integrity logs, guaranteeing that all company transactions are above board. Euronext additionally assists companies with consenting to EU market abuse regulations and gives answers for the board.

Post-Trade Services

Post-trade services incorporate clearing, settlement, and custody, and are core offerings of any exchange. The purpose of these services is for the issuance and safekeeping of financial securities, as well as the settlement and clearing, everything being equal.

As of November 2021, Euronext's listed products incorporate 1,937 equities, 52,261 bonds, 3,376 ETFs, and 3,151 funds.

These post-trade services fall under Euronext Securities and Euronext Clearing. Under Euronext Securities, Euronext gives settlement and custody answers for listed companies, which included helping with funding needs, supporting the capital markets, and any ancillary services, for example, tax and investor services.

Euronext Clearing centers around cash equity, listed derivatives, repos, fixed income, ETFs, and the commodities market. Euronext Clearing gives clearing services across numerous European settings, acts as a clearinghouse, and gives risk management services.

Products Traded on Euronext

The two principal product categories on Euronext are cash/spot and derivatives. Under the cash/spot category, Euronext offers shares/equities, fixed income, funds, ETFs, warrants and certificates, and indices.

Under the derivatives category, Euronext offers equity derivatives (stock options, stock futures, ETF options, index derivatives, and dividend derivatives), FX derivatives (currency pairs), and commodities.

Regulation of Euronext

Euronext falls under the "Controlled Markets" jurisdiction under the Markets in Financial Instruments Directive II (MiFID II) and needs to comply to the rules as a whole and regulations under MiFID II. Euronext Amsterdam, Brussels, Dublin, Lisbon, London, Oslo, and Paris, all need to maintain these regulations.

Moreover, Euronext works numerous different markets that are viewed as Multilateral Trading Facilities (MTFs) under MiFID II and have their own rule books to follow.

Features

Euronext is a large, global stock exchange group, initially the combination of three former exchanges from France, Belgium, and the Netherlands.
Euronext works exchanges in Paris, Amsterdam, Brussels, Lisbon, Dublin, Oslo, and Milan.
Numerous well known European benchmark indexes are made by Euronext, like AEX, BEL 20, CAC 40, and PSI 20.
Euronext's offerings cover a wide exhibit of assets, including equities, exchange traded funds (ETFs), warrants and certificates, bonds, derivatives, commodities, and indices.
The company was once acquired by Intercontinental Exchange however presently has returned to operating independently.

FAQ

Where Could Euronext Located be?

Euronext is settled in Amsterdam yet works markets in Paris, Brussels, Dublin, Lisbon, Milan, and Oslo.

Who Can Trade on Euronext?

Euronext's trading individuals incorporate investment banks, retail banks and brokers, independent trading firms, liquidity suppliers, market producers, and nearby brokerage firms.

How Do I Buy Euronext Shares?

An investor wouldn't buy Euronext shares explicitly yet rather the listed shares of companies on the Euronext exchanges. To buy these shares an investor needs to open a brokerage account, fund the account, and afterward purchase the shares of the company they are keen on.