Euronext Sets-Up New Home for Non-Listed Securities Trading

Tuesday, 02/12/2014 | 18:21 GMT by Adil Siddiqui
  • European trading venues, Euronext, will be opening-up trading on non-listed securities its newly launched Euronext Expert Market. The move supports small and family businesses and could ramp up the real economy.
Euronext Sets-Up New Home for Non-Listed Securities Trading

Securities that do not meet the criteria for trading on recognised exchanges will take heed of a new market place that aims to serve the needs of small and mid-sized businesses. Euronext, a leading financial trading Exchange that operates across Europe, has launched a new electronic trading solution that offers connectivity to instruments that do not meet formal listing requirements.

The firm announced today the launch of the Euronext Expert Market, an electronically traded secondary market offering a transparent and secure platform for the sale of non-listed securities by weekly auction. The move signifies the importance of the secondary markets for the growth and development of businesses, particularly during times when credit is questioned by banks.

The regulated entity that is classified as a Multilateral Trading Facility (MTF) is the first European firm to embark on such an offering. The new electronic format aims to facilitate the trading of securities not admitted to listing on regulated markets by offering broader and more efficient access through Euronext Expert Market.

Second and third tier firms are able to list on the secondary market or extend market in the UK known as the Alternative Investment Market (AIM). The AIM markets offer a wider listing perspective then the main markets.

Vincent Van Dessel, CEO of Euronext Brussels, said: “There is an evident need in the market for a venue where non-listed securities can be traded. The ongoing dis-intermediation and growing number of private initiatives on the primary market, including Crowdfunding , boost the demand for a reliable and transparent secondary market. With the Euronext Expert Market, we are more than ever playing our role as a centre for financing the real economy as we will be able to offer a transparent and secure platform for trading all types of financing instruments.

"Moreover, by converting a market that is over 140 years old into a modern venue, we are taking advantage of our knowledge of handling a huge range of financial instruments and combine it with the unique experience of our specialised brokers and banks.”

The new solution will go live Tuesday, December 9th. The venue reported in its main notification that as of this date, weekly electronic auctions will take place every Tuesday for securities, bonds and other fixed income instruments. The Euronext Expert Market will remain open to all investors through their bank or broker, as this new platform requires expert knowledge to determine the exact value of the instruments and the opportunity to invest in them.

Firms are listed on recognised stock exchanges for the trading of securities. Exchanges across the globe have set listing requirements before firms can be listed on the exchange. Examples of the criteria firms need to meet include financial and non-financial criterion, such as the standards that cover total market value, stock price and the number of publicly traded shares and shareholders a firm has.

Securities that do not meet the criteria for trading on recognised exchanges will take heed of a new market place that aims to serve the needs of small and mid-sized businesses. Euronext, a leading financial trading Exchange that operates across Europe, has launched a new electronic trading solution that offers connectivity to instruments that do not meet formal listing requirements.

The firm announced today the launch of the Euronext Expert Market, an electronically traded secondary market offering a transparent and secure platform for the sale of non-listed securities by weekly auction. The move signifies the importance of the secondary markets for the growth and development of businesses, particularly during times when credit is questioned by banks.

The regulated entity that is classified as a Multilateral Trading Facility (MTF) is the first European firm to embark on such an offering. The new electronic format aims to facilitate the trading of securities not admitted to listing on regulated markets by offering broader and more efficient access through Euronext Expert Market.

Second and third tier firms are able to list on the secondary market or extend market in the UK known as the Alternative Investment Market (AIM). The AIM markets offer a wider listing perspective then the main markets.

Vincent Van Dessel, CEO of Euronext Brussels, said: “There is an evident need in the market for a venue where non-listed securities can be traded. The ongoing dis-intermediation and growing number of private initiatives on the primary market, including Crowdfunding , boost the demand for a reliable and transparent secondary market. With the Euronext Expert Market, we are more than ever playing our role as a centre for financing the real economy as we will be able to offer a transparent and secure platform for trading all types of financing instruments.

"Moreover, by converting a market that is over 140 years old into a modern venue, we are taking advantage of our knowledge of handling a huge range of financial instruments and combine it with the unique experience of our specialised brokers and banks.”

The new solution will go live Tuesday, December 9th. The venue reported in its main notification that as of this date, weekly electronic auctions will take place every Tuesday for securities, bonds and other fixed income instruments. The Euronext Expert Market will remain open to all investors through their bank or broker, as this new platform requires expert knowledge to determine the exact value of the instruments and the opportunity to invest in them.

Firms are listed on recognised stock exchanges for the trading of securities. Exchanges across the globe have set listing requirements before firms can be listed on the exchange. Examples of the criteria firms need to meet include financial and non-financial criterion, such as the standards that cover total market value, stock price and the number of publicly traded shares and shareholders a firm has.

About the Author: Adil Siddiqui
Adil Siddiqui
  • 1625 Articles
About the Author: Adil Siddiqui
  • 1625 Articles

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