[ A D V E R T O R I A L ]
and members (sell-side), to provide
robust best execution analytics
based on Client ID or session usage.
Additionally, Euronext will soon
kick off a client consultation on
mid and small cap execution. As
Euronext Block is seeing increased
client engagement, we believe it is
well positioned to become the Euro-
pean block trading venue of choice.
A brand-new space for funds
With Euronext Fund Services,
Euronext is well-established on the
Paris and Amsterdam markets to
offer investors a primary market/
NAV trading platform for non-ETF
open-end funds. It allows asset
managers to list their funds on the
Exchange, and investors worldwide
(institutional and retail) can then
access the funds easily through
their broker to send subscription/
redemption orders. The service has
been in place since 2007, with 250
funds (UCITS and AIFS) listed to
date by 33 asset management firms
in Amsterdam and Paris. Euronext
Fund Services is MiFID II compli-
ant, removing retrocessions and
introducing more automation and
transparency.
This service revolutionises fund
investing by offering a STP order
routing model via the exchange and
its member brokers. Investors don’t
need to fill out the KYC procedures
to be registered as a shareholder
of the fund share class, since the
whole procedure is handled by their
member broker and NAV orders are
notified directly to him. Investors
also benefit from their broker’s
settlement/delivery infrastructure
and can select their funds through
our specifically customised Morn-
ingstar fund data tool on Euronext’s
website. This broker-neutral service
will help investors enhance their
investment strategy. Asset managers
who list their funds also benefit
from increased visibility with a
broadened base of investors around
the globe.
Creating new benchmark indices and
derivatives
Clients have told us that they are
looking for an alternative to the
high price of existing European
index offers. Euronext is working
with Morningstar, the leading
global provider of independent
research and data, to create two
new European indices - the Morn-
ingstar® Eurozone 50 Index™ and
Morningstar® Developed Markets
Europe 100 Index™ - and associat-
ed derivatives.
“Since it went live in
August 2017, Euronext
Block’s average trade
size reached over €1m,
with a record trade
to date of €3.1m on
Daimler”
The new indices provide exposure
to the largest and most liquid
companies in the Eurozone and
European developed markets, and
are built for creation of cost-effi-
cient investment products (ETFs,
ETPs and structured products) by
asset managers thanks to a compet-
itive licensing fee. They offer free
access to their constituent holdings
on a monthly basis for portfolio
construction and risk monitoring.
Finally, to support the full indexing
cycle and benchmarking, Euronext
created index futures on both
indices. These derivative instru-
ments are priced competitively and
aim to provide an effective hedging
and risk management tool. With
liquidity provided by trusted market
makers, they are traded in a trans-
parent and secured environment at
Euronext with clearing provided
by LCH S.A. Options on the indices
will be added later this year.
Single access to all European-listed
ETFs
Later this year, Euronext is launch-
ing a one-stop shop pan-European
ETF trading platform, developed
in collaboration with significant
players in the ETF industry. The
platform will give investors access
to all 7,000+ European listed ETFs,
available via a standard order book
and an unprecedented multilateral
NAV trading, bo th complete with a
RFQ model. It will also offer flexible
settlement and dark order func-
tionality. This platform will meet
the needs of clients in a currently
opaque market, help increase li-
quidity and achieve best execution,
and improve operational efficiency.
An exchange for Europe’s buy-side
firms
Euronext works to stay agile, inno-
vate and put its customers first. Our
products and services are designed
to provide the buy-side in Europe
and beyond with a truly unique,
cost-efficient and trustworthy trad-
ing alternative to drive their growth
effectively.
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