By John Burns
Copyright independent
Promising to “unify the European ETF market” and remove long-standing structural inefficiencies, Euronext is creating the first fully integrated marketplace for the increasingly popular funds.
Instead of having to list the same instrument on several European exchanges, issuers will now be able to use a single listing.
The new model also combines the clearing and settlement system. At present, according to Euronext, the fragmentation of the market has led to much trading of ETFs happening over-the-counter or on alternative trading platforms, reducing transparency and making sales more complex.
Euronext operates the stock markets in France, Italy, Netherlands, Norway, Belgium and Portugal as well as Ireland. It says there are currently 3,500 ETF listings in Europe, of which about 2,100 are in Milan, 750 in Paris, and 700 in Amsterdam.
Some 834 ETFs are cross listed between Amsterdam, Paris and Milan. The new system will mean that ETF listers no longer have to put the same instrument on multiple venues in order to make them available to all retail investors in Europe At present, the average number of listings per ETF in Europe is 3.5,
From now on, Euronext says, the listing location will not matter, and all ETF trades will be done on a single platform, with an efficient post-trade process. The complexity of the post-trade arrangements, which vary from market to market, have meant that every-day investors participate less in the European markets than their counterparts in America.
There had been speculation that Euronext would instead force the relocation of all ETF listings to one market, such as Amsterdam.
“Investors, particularly retail participants, will enjoy more transparent, cost-effective access to a wider array of ETFs from across Europe supported by deeper liquidity, greater price visibility, and a broader selection at more competitive rates,” the stock exchange operator said.
“Issuers will also be able to list a broad range of products, covering multiple asset classes and underlying benchmarks, and to offer the same product in different currency denominations, thereby enhancing flexibility and alignment with investor demand across jurisdictions.”
Today’s News in 90 Seconds – September 30th
Euronext says that issuers representing over 90pc of European ETF assets and major brokers support its new platform, including BlackRock, BNP Paribas Asset Management, HSBC Asset Management, and Vangard
Sarah Melvin, head of European client business at BlackRock, said: “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. 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.”
Andrea Busi, chief executive at Directa, said the platform was aiming to meet the needs of an ever-growing number of investors. “In the first half of 2025, Directa’s clients made twice the number of transactions on ETF compared to 2024: a clear sign of the level of appeal these financial products have reached among Italian retail investors.”
