Euronext has launched Euronext ETF Europe, to serve as the first fully integrated marketplace for exchange-traded funds (ETFs) and exchange-traded products (ETPs) across Europe.
Anthony Attia
The offering will provide a single integrated environment for listing, trading, clearing and settlement, allowing ETF issuers to list a product once on a single Euronext platform, which will then reach all Euronext markets, eliminating the need for multiple venue listings.
Specifically, the marketplace will integrate a single order book and trading platform, Optiq, which offers a unified system across Amsterdam, Paris and Milan, as well as a united market data channel.
The offering will also include a consolidated clearing and streamlined settlement through Euronext Clearing, to reduce post-trade operational burdens and capital requirements.
The launch is expected to address challenges of long-standing fragmentation and distribution inefficiencies in European ETF markets through delivering simplified administrative processes and reduced regulatory duplication to enable quicker time-to-market and increased product reach.
Anthony Attia, global head of derivatives and post-trade at Euronext, said: “The launch of Euronext ETF Europe marks a strategic leap forward in building a truly unified and competitive European capital market. By creating the first fully integrated ETF ecosystem across jurisdictions, we are not only removing long-standing structural inefficiencies, but also setting a new standard for transparency, accessibility and scale in European investing.”
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Euronext’s new ETF marketplace has also received support from major brokers and issuers representing more than 90% of European ETF assets, including BlackRock, BNP Paribas Asset Management, Invesco and Janus Henderson Investors.
“We have long been supportive of efforts to grow capital markets in Europe as a way to enhance prosperity for Europeans and the competitiveness of the European economy,” said Sarah Melvin, head of European client business at BlackRock.
“We believe unifying ETF trading will improve access and transparency for investors, helping bring down barriers to investing and contributing to more vibrant and deeper capital markets in Europe.”
Additionally, the launch is set to address fundamental efficiency differences between the US and European ETF market structure, where the US benefits from a single post-trade utility from the Depository Trust and Clearing Corporation (DTCC), as well as high retail market participation, according to Euronext.
Retail participants are also expected to benefit from Euronext ETF Europe’s wider provision of ETFs across the region, with a growth in retail participation identified as a key driver for future ETF market expansion.