Euronext - 2020 Universal Registration Document
Presentation of the Group
Company Profile
1.1.1 HISTORY Today, Euronext is a pan-European market infrastructure group, offering a diverse range of products and services and combining transparent and efficient equity, fixed income securities and derivatives markets in Amsterdam, Brussels, Dublin (since March 2018), Lisbon, Oslo (since June 2019) and Paris (1) . Euronext’s businesses comprise: equity, debt, fund and ETF listing, corporate and investor services, cash trading, foreign exchange trading, derivatives trading, power trading, advanced data services, post- trade services as well as Technology Solutions. Euronext in its original formwas created in 2000 and takes its roots from the European construction. It was first the result of a three- way merger of the Paris, Amsterdam and Brussels exchanges, soon completed by the acquisition of the London-based derivatives market, LIFFE, and the merger with the Portuguese exchange. The continental exchanges were combined into a unique federal model with unified rules and a Single Order Book (except for Portugal), operating on the same electronic trading platform and cleared by LCH S.A. CCP, creating the first genuinely cross-border exchange in Europe and predating all initiatives by policy makers to allow for the creation of pan-European market places. In May 2006, Euronext entered into an agreement with NYSE group for the combination of their respective businesses. The new holding company of these combined businesses, NYSE Euronext, was subsequently listed on the New York Stock Exchange and on Euronext Paris. In 2010, NYSE Euronext launched Euronext London, a London-based securities market aiming at attracting international issuers looking to list in London and benefiting from Euronext’s value proposition. In November 2013, ICE, an operator of global markets and clearing houses, acquired NYSE Euronext. A key element of the overall transaction was the separation and IPO of NYSE Euronext’s continental European exchanges as a stand-alone entity. In order to do this, ICE carved out the continental European operations of NYSE Euronext and Euronext London into a newly formed entity, which was subsequently renamed Euronext N.V. Since its successful IPO on 20 June 2014, Euronext N.V. has been an independent listed company. In May 2016, Euronext N.V. launched its strategic plan named “Agility for Growth” which defined the growth ambitions for 2019, both through organic growth and bolt-on acquisitions. In 2017, Euronext N.V. diversified its revenue, through the acquisition of 90% of the shares of the forex platform FastMatch, and by investing in corporates services companies. In 2018, Euronext N.V. expanded its listing franchise, welcoming a new exchange in its federal model with the acquisition of the Irish Stock Exchange. The Group also strengthened its Corporate Services offering with the acquisition of InsiderLog and widened its products offering with the launch of Investors Services through the acquisition of Commcise in December 2018.
In 2019, Euronext N.V. pursued the expansion of its federal model with the acquisition of Oslo Børs VPS, strengthening its post-trade franchise and marking the first step of its Nordics expansion ambitions. The Group also continued to invest into innovative solutions, investing in Tokeny Solutions and acquiring a majority stake in OPCVM360 (renamed as Euronext Funds 360). In October 2019, Euronext launched its strategic plan named “Let’s Grow Together 2022” under which Euronext aims to build the leading pan-European market infrastructure, connecting local economies to global capital markets, by growing and seizing opportunities, to accelerate innovation and sustainable growth (see section 1.2 – Strategy: “Let’s Grow Together 2022” Strategic Plan for more information on Euronext’s strategy) . In 2020, Euronext N.V. pursued both its Nordic and federal model expansion. The Group acquired a majority stake in Nord Pool, a leading power trading infrastructure operating in the Nordic region, Baltics and Central andWestern Europe region, widening its range of asset classes. The Group also strengthened its post-trade offering with the acquisition of VP Securities, the Danish domestic CSD and expanded its corporate services franchise with the acquisition of Troisième Sens and Ticker. On 9 October 2020, Euronext announced it had entered into a binding agreement with London Stock Exchange Group plc and London Stock Exchange Group Holdings (Italy) Limited to acquire 100% of the entire issued share capital of London Stock Exchange Group Holdings Italia S.p.A., the holding company of the Borsa Italiana Group (see section 1.2.2 – Update in 2020 for more information on the Proposed Combination) . Euronext expects the completion of this transaction in the first half of 2021. 1.1.2 AMBITION Euronext is the leading pan-European market place for the financing of the real economy. Its core mission and the driver of its strategy is to connect local economies to global capital markets, to accelerate innovation and sustainable growth and fulfil its ambition of building the leading pan-European market infrastructure. As a pan-European group with a profile that is ’united in diversity’, Euronext’s ambition is to play a constructive role in the local ecosystems and act as an industry problemsolver while contributing to making Europe an attractive block in a multipolar world. Euronext believes that the Group’s model is best suited to contribute to the construction of a true pan-European market. It operates regulated markets in Belgium, France, Ireland, the Netherlands, Norway and Portugal, all of which are connected via a unique, single trading platform, with a single order book and with a harmonized regulatory framework. Euronext has a proven track record in connecting other independent exchanges to its single trading platform, as demonstrated with the migration of Euronext Dublin in 2019 and the migration of Oslo Børs markets in 2020. Euronext’s unique Single Order Book allows investors to get the benefit of being able to trade, clear and settle in a uniform way throughout various jurisdictions while also accessing a broad and deep pool of liquidity. Euronext is also ready to welcome other independent Eurozone
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(1) On 30 March 2020, Euronext filed an application for the revocation of its RIE licence, subject to approval from the FCA. Under the applicable rules this requires that Euronext will have to cease all regulated activities in the UK as per 30 June 2020. Euronext will ensure an orderly wind down of its limited regulated activities in close consultation with the FCA. It is intended that the FCA will leave the Euronext College of Regulators.
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2020 UNIVERSAL REGISTRATION DOCUMENT
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