Euronext // 2021 Universal Registration Document
Presentation of the Group
Description of the Business
1.3.5
ADVANCED DATA SERVICES
Euronext has expanded in bonds and funds data. For bonds, this was notably done through the acquisition of Euronext Dublin.
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1.3.5.1 Market Data Euronext’s market data portfolio provides a wide range of data products to the global investment community, including pre- and post-trade market prices, index composition, and reference data spanning its Cash and Derivatives markets in Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo and Paris. The data is used by traders and investors to make buy or sell decisions with confidence, and by issuers to create new tradable products such as ETFs. Euronext’s market data clients range from the largest investment banks in the world to individual investors trading from their front room. Euronext’s market data business consists of two product and service categories: Real-Time Market Data Euronext’s main data offering involves the distribution of real-time market data. This data includes price, trade and order book data on all instruments traded on the Company’s cash and derivatives markets, as well as information about Euronext’s indices and trade and transaction reports submitted via the approved publication arrangement (“APA”) and approved reporting mechanism (“ARM”) services. The data is marketed through different information products which are packaged according to the type of instrument, the depth of the information, and the type of customer. Euronext continues to invest in its trading and information platforms to ensure both execution and data services are of the highest quality and value. In 2021 the market data contract management platform was enhanced to allow clients to view their agreements and order new products online, thus simplifying the administrative process. The continued development of the contract management system benefits both new and existing customers especially with the onboarding of new exchanges such as Dublin, Oslo and Milan. The data is disseminated primarily via data vendors but also directly to financial institutions and other service providers in the financial sector. Over 450 vendors currently disseminate Euronext market data to approximately 230,000 screens in over 120 countries. During 2021, Euronext continued to see an increase in the use of Euronext data in automated trading applications, and a corresponding decrease in the number of users viewing data on traditional trading screens, although the decrease was smaller than in previous years due to users continuing to work from home and therefore not being able to share terminals. Retail clients have access to data from Euronext’s markets through the Live.Markets section of the Live.Euronext.com website or via retail brokers. During 2021, there has been a 200% increase in the number of retail clients using Euronext data, consistent with the increase in retail investors participation in trading on European Union shares. Historical and Reference Data In addition to real-time market data, Euronext also provides daily summary, historical and analytical data services, as well as reference and corporate action data services. In 2018 Euronext launched an e-commerce platform that allows retail investors to buy data online directly from Euronext and in 2020 launched further products via the platform aimed at both professional and retail investors.
1.3.5.2 Advanced Data In 2019 Euronext launched Market Flow which shows a daily breakdown of trading flows on the cash orderbook. It provides analytic products based on Euronext proprietary data, anonymised and aggregated. Euronext is seeing strong demand for these high- value products and the client base is expanding. Euronext now has multiple new diverse sources of data from whichto extract value, including Borsa Italiana Group, MTS, Oslo Børs, Euronext Dublin, Euronext FX, and Commcise. Euronext has already co-designed a strong product pipeline with clients, to expand the current offering into new asset classes. Euronext will continue to invest in advanced data products and reinforce its quantitative research team. 1.3.5.3 Indices Euronext owns and operates a leading benchmark and strategy index franchise that measures different segments of the Euronext and other global markets, including the AEX®, BEL 20®, CAC 40®, ISEQ®, MIB® ESG, PSI® and OBX® indices. The Company also creates new proprietary indices generating added value for its market participants and providing measurement tools for all types of investment categories regardless of listing venue. Euronext offers a fully customisable index service which includes index calculation across equities, commodities and currencies, five days a week, with two end-of-day runs reflecting market close in Europe, Asia and the Americas. Many of Euronext’s indices are licensed as the basis for ETPs (including ETFs) and structured products. On 17 April 2019, Euronext was registered by the European Securities and Markets Authority (“ESMA”) as a Benchmark Administrator under the new EU Benchmark Regulation (“BMR”). This compliance with the provisions of the Benchmark Regulation confirms the quality of Euronext’s governance and control principles and rules, today acknowledged by key European regulators: the AFM in the Netherlands, AMF in France, CMVM in Portugal, FSMA in Belgium, CBI in Ireland and Finanstilsynet in Norway. In recent years, Euronext has become a leader in ESG indices and has reinforced its blue-chip index franchise. More than 20 ESG indices have been launched in 2021, notably: n the CAC 40® ESG index. Responding to the growing demand for sustainable investment tools from investors and from the market, the CAC 40® ESG is Euronext’s first national ESG index and is derived from the CAC 40® index family. The CAC 40® ESG index combines measurement of economic performance with Environmental, Social and Governance impacts, in line with the French SRI label and the UN Global Compact principles. Several products have already been launched on this index; n the MIB® ESG index, the first Italian blue-chip ESG index designed to identify major listed Italian issuers that demonstrate best ESG practices. The index’s methodology reflects a ranking of the top 40 Italian listed companies based on ESG criteria. The selection is made from the 60 most liquid Italian companies and excludes companies involved in activities which are not compatible with ESG investment;
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2021 UNIVERSAL REGISTRATION DOCUMENT
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