[ A D V E R T O R I A L ]
Euronext’s market-
responsive solutions
for the buy-side’s
investing process
Enhanced liquidity discovery, automation, transparency and cost-efficiency
for investing in equities, indices, derivatives, funds and ETFs.
O
ver the past few years, Europe-
an financial markets have seen
revolutionary changes: disruptive
technologies and the MIFID II
regulation have resulted in clients’
needs evolving and new trading
models emerging. Euronext, the
leading pan-European exchange,
has been attentive to these evolu-
tions and is ready today to meet the
buy-side’s requirements in various
asset classes with a set of robust
initiatives. Our solutions for equities
and ETFs aim to provide enhanced
liquidity discovery in the fragment-
ed market structure, while our
products for indices and derivatives
help investors to reduce overall
cost by supporting the full investing
process cycle. Our funds service
enables increased automation and
transparency.
32 // TheTrade // Spring 2018
Facilitating block trading
In equities, market participants
are looking for new ways to trade
blocks safely and proactively. In
response, Euronext launched a
new block trading MTF, “Euronext
Block”. Through our sell-side mem-
bers, the MTF enables the buy-side
to trade blocks by signalling interest
to selected counterparties through
Invitation-to-Trade messaging. The
MTF is fully MiFID II compliant
and designed to address the im-
pending dark double volume caps.
All orders must be Large-in-Scale
or above, and they can be either
firm or conditional. Euronext Block
offers improved liquidity with its
randomised auctions, enables price
improvement and increased chance
of price discovery, and our pro-rata
volume allocation algorithm favours
size over speed. Trading is available
on over 3,200 pan-European instru-
ments and is currently supported by
eight members.
Since it went live in August 2017,
Euronext Block’s average trade
size reached over €1 million, with a
record trade to date of €3.1 million
on Daimler, and we observed on
average approximately 8bps of price
improvement. Euronext Block will
soon add new enhancements to
further assist liquidity discovery.
Our Nominated Client Programme
will offer a tri-party agreement
registration to end users (buy-side)