Euronext will finish moving equities traded across its venues to a new clearing house this month, according to the pan-European bourse’s boss.
Euronext Brussels became the first Euronext exchange to shift to its new venue on 6 November.
Euronext chief executive Stéphane Boujnah said migration for all other exchanges would be completed in November.
“Within the next three weeks we will migrate the other Euronext markets to be cleared on Euronext Clearing,” he said on an 8 November call with journalists.
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The migration will mean the default clearing house for equities traded on Euronext will move from LCH SA — the London Stock Exchange’s service on the continent — to its in-house service. As part of the migration, Euronext sold its 11% stake in LCH SA back to the London Stock Exchange in June for €111m.
Boujnah said the migration which would add revenue and reduce costs. The move is set to contribute to Euronext’s goal of saving €115m in 2024 by streamlining the business .
“This migration translates into Euronext capturing 100% of the revenues of cash equity clearing which in the past was collected by LCH SA,” he said.
Euronext also plans on moving derivatives clearing in-house in the third quarter of 2024.
“We have embarked into the project to build a new value proposition in Europe… to create an alternative platform with the wide ambition to grow in the derivatives and clearing world and to also offer additional services in additional asset classes,” said Boujnah.
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The exchange confirmed that the expansion of its retail-focused multilateral trading facility, GEM, is set to go live on 13 November, allowing European retail traders access to European and US stocks.
Euronext announced Simon Gallagher as the new chief executive of Euronext London. He has also been nominated as the next head of global sales for Euronext. Gallagher was previously head of cash and equities at the exchange
The exchange continues to integrate Borsa Italiana, migrating trading at the exchange onto its Optiq trading platform. It finished moving the Italian exchange’s fixed income, warrants and certificates market in September. In March, it switched over its equities market. The final phase will be completed in the first quarter of 2024 when it migrates derivatives traded on Borsa Italiana to Optiq.
Since acquiring the exchange in 2021, Euronext has spent €95m integrating it into the group.
Euronext reported revenue of €360.2m in the third quarter, up nearly 20% on last year. The boost primarily came down to an improvement in treasury income at Euronext Clearing; the clearing house posted losses of €49m in 2022 compared with a €13.7m gain in the latest quarter.
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