Euronext activities

Introduction

Euronext is the first genuinely cross-border exchange. It provides international services for regulated Cash Markets and Derivative Markets in Belgium, France, the Uk (derivatives), the Netherlands and Portugal. Since its creation in 2000, Euronext has been working towards the consolidation of financial markets by integrating local markets across Europe to provide users with a single market that is broad, highly liquid and extremely cost-effective. After the initial three-way merger of the local exchanges of Amsterdam, Brussels and Paris, Euronext acquired the London-based Derivative Market LIFFE, and merged with the Portuguese exchange in 2002. The implementation of Euronext’s horizontal market model, designed to generate synergies by incorporating the individual strengths and assets of each local market, has proved that the most successful way to merge European exchanges is to apply global vision at a local level. This unique business model has been implemented on all of Euronext’s markets and covers technological integration, the reorganisation of activities into cross-border, streamlined SBUs, and the harmonisation of market rules and the regulatory framework. IT integration was completed in 2004, when a four-year migration plan resulted in harmonised IT platforms for cash trading (NSC), derivatives (LIFFE CONNECT®) and clearing. As a result, every market participant now has a single point of access to trading. Another step forward in the rationalisation of Euronext’s IT structure was made in 2005 with the creation of Atos Euronext Market Solutions, an IT services-related joint-vehicle between Euronext and Atos Origin that is a leading global provider of technology services to the capital markets (see www.aems.net). During the completion of the first phase of its market consolidation and IT integration, Euronext also diversified its sources of revenues, thus gaining protection against fluctuations in the financial markets. In 2004, it reinforced its stake in GL TRADE, the world’s leading provider of front to back-office trading, clearing and settlement solutions (see www.gltrade.com). In 2005, it acquired, in partnership with Borsa Italiana, a major stake in MTS, the leading electronic market for European wholesale fixed income securities (see www.mtsgroup.org). By investing in complementary businesses such as these, Euronext has been able to broaden the range of services it offers to its customers. Euronext provides its customers with a comprehensive range of integrated services to meet their needs on the financial markets. These customers are: members and financial institutions that have direct access to trading on its markets; companies whose securities are listed on its markets, enabling them to raise capital; institutional and retail investors who trade on Euronext’s markets; other organisations that use Euronext’s technologies and services; and users of financial information. Euronext’s services range from facilitating public offerings and providing trading facilities for cash and derivative products to supplying market data. It benefits from clearing services provided by LCH.Clearnet, and Settlement and Custody services provided by local CSDs and through its partnership with Euroclear. In addition to its trading-related businesses, the Group also sells software and IT solutions through Atos Euronext Market Solutions and its subsidiary GL TRADE

EURONEXT’S NETWORK