Finance : Euronext
As far as the number of IPOs is concerned, EURONEXT Paris has moved from the 21st position among the world bourses in 2013 to 9th so far this year. This is good news for the operator’s profits and for the financing of small enterprises in France.
EURONEXT itself is the pan-European union of the bourses of Paris, Amsterdam, Brussels and Lisbon. It was created in 2000 and successively bought by the New York Stock Exchange in 2006 and then by the IntercontinentalExchange (ICE) in 2013. ICE spun it off in June 2014 and it now stands as an independent company. It has the distinction of being continental Europe’s biggest exchange in terms of market capitalization of the firms listed on it, ahead of Germany’s Deutsche Börse.
EURONEXT is run by Frenchman Dominique Cerutti who is the chief executive. He has launched several initiatives during the last months. These include a deal with LCH.Clearnet which allows EURONEXT to obtain fees on the derivative products it sends to the clearing house.
The EURONEXT chief executive’s target is to make his company the leading capital raising center in Europe. It is cutting its costs and fees to meet the challenge of the trading platforms which are gaining ground on other national bourses including the London Stock Exchange.
EURONEXT Paris, the French arm of EURONEXT, is believed to be the leading center for issuing Euro denominated bonds. EURONEXT is also the leading venue in continental Europe in listing and cash trading. All the continental derivatives are also with EURONEXT.
France did not work on building a strong financial structure in Paris like London has done over the last three decades and which has made the latter by far the largest financial center in Europe. However Paris has significant assets and with the Paris 2020 project, there is now general acceptance that rebuilding a strong financial center in Paris is critical for the financing of the French economy. With the stream of IPOs so far this year and with more in the pipeline, Paris is repositioning itself as a leading world bourse together with the other exchanges within EURONEXT. French banks and insurers which have tended to do their transactions abroad over the past years may well come back to Paris in future.
Sources : ft.com, Bfm Business, Euronext.com, DEALOGIC
Video Sources : Sourcehttp://www.dailymotion.com/video/x21c1uj_the-business-interview-dominique-cerutti-ceo-of-euronext_news
Online publishing, September 6th, 2014