is a pan-European stock exchange based in Paris and with subsidiaries in Belgium, France, Netherlands, Portugal
and the United Kingdom. In addition to equities and derivatives
markets, the Euronext group provides clearing and information
As of January 31, 2006 markets run by Euronext had a market
capitalization of US$2.9 trillion, making it the 5th largest
exchange on the planet.
Euronext merged with NYSE
Group to form NYSE Euronext, the first global stock
formed on September 22, 2000 in a merger of the Amsterdam Stock
Exchange, Brussels Stock Exchange, and Paris Bourse, in order
to take advantage of the harmonization of the European Union financial
markets. In December 2001 Euronext acquired the shares of the
London International Financial Futures and Options Exchange (LIFFE),
which continues to operate under its own governance. Beginning
in early 2003, all derivatives products traded on its affiliated
exchanges trade on LIFFECONNECT, LIFFE's electronic trading platform.
In 2002 the group merged with the Portuguese stock exchange Bolsa
de Valores de Lisboa e Porto (BVLP), renamed Euronext Lisbon.
cross-membership and cross-access agreements with the Warsaw Stock
Exchange for their cash and derivatives products, and with the
Helsinki Exchanges on cash trading; ownership agreements are currently
excluded. The Euronext List encompasses all quoted companies.
It has two segments; NextEconomy, consisting of companies whose
equities are traded continuously and are active in sectors such
as information technology and biotechnology, and NextPrime, consisting
of companies in more traditional sectors that are traded continuously.
Inclusion in the segments is voluntary.
two broad-based indices. The Euronext 100 Index is the blue chip
index. The Next 150 Index is a market capitalization index of
the 150 next largest stocks, representing the large to mid capitalization
segment of listed stocks at Euronext. The NextEconomy and NextPrime
segments each have a price index and a total return index, weighted
by market capitalization and excluding the shares listed in the
Euronext 100 Index. The indices have a base date of December 31,
2001, with a starting level of 1000 points. Six NextWeather weather
indices for France, launched in January 2002, are among the sector
indices planned by Euronext. Exchange traded funds, called trackers,
comprise Euronext's NextTrack product segment, and have been introduced
on the AEX index, CAC 40 Index, DJ Euro Stoxx 50 Index, and various
pan-European regional and sector indices. Euronext has introduced
several commodity futures contracts, available to all constituents.
Winefex Bordeaux futures are traded on Euronext Paris. Euronext.liffe
is the subsidiary of Euronext responsible for all options and
futures contracts trading, formed by the merger of the derivatives
activities of the various constituents of Euronext with LIFFE.
was formed in January 2002 from the takeover of the London International
Financial Futures and Options Exchange by Euronext. The derivatives
activities of the other constituent exchanges of Euronext (Amsterdam,
Brussels, Lisbon and Paris), were merged into Euronext.liffe.
Trading is done electronically through the LIFFE CONNECT platform.
Euronext.liffe offers a wide range of futures and option products
on short-term interest rates, bonds, swaps, equities and commodities.
2004 were split as follows:
Rate: 313.3 million contracts
468.8 million contracts
8.0 million contracts
to this, it sells its technology to third parties. Since April
2003, the Tokyo International Financial Futures Exchange (TIFFE)
has run on LIFFE CONNECT. Furthermore, in January 2004, the Chicago
Board of Trade started electronic trading using e-cbot, which
is powered by LIFFE CONNECT. As a result, the Kansas City Board
of Trade (KCBT), the Minneapolis Grain Exchange (MGEX) and the
Winnipeg Commodity Exchange (WCE) use LIFFE CONNECT for their
was formed in 2005 by Euronext to help small and mid-class companies
in the Eurozone seek financing. Since the merger of Euronext and
NYSE since 2006, now completed in 2007, this market is now a division
of NYSE Euronext, named NYSE Alternext.
Due to apparent
moves by NASDAQ to acquire the London Stock Exchange,
NYSE Group (owner of the New York Stock Exchange) offered 8 billion
euros ($10.2b) in cash and shares for Euronext on May 22, 2006,
outbidding a rival offer for the European Stock exchange operator
from Deutsche Borse, the German stock market.
Contrary to statements that it would not raise its bid, on May
23, 2006, Deutsche Borse unveiled a merger bid for Euronext, valuing
the pan-European exchange at US$11 billion (¬8.6bn), ¬600 million
over NYSE Group's initial bid. 
Despite this, NYSE Group and Euronext penned a merger agreement,
subject to shareholder vote and regulatory approval. The initial
regulatory response by SEC chief Christopher Cox (who was coordinating
heavily with European counterparts) was positive, with an expected
approval by the end of 2007.
The new firm, tentatively dubbed NYSE Euronext, would be headquartered
in New York City, with European operations and its trading platform
run out of Paris. NYSE CEO John Thain, who would head NYSE Euronext,
intends to use the combination to form the world's first global
stock market, with continuous trading of stocks and derivatives
over a 21-hour time span. In addition, the two exchanges hope
to add Borsa Italiana (the Milan stock exchange) into the grouping.
dropped out of the bidding for Euronext on November 15, 2006,
removing the last major hurdle for the NYSE Euronext transaction.
A run-up of NYSE Group's stock price in late 2006 made the offering
far more attractive to Euronext's shareholders.
On December 19, 2006, Euronext shareholders approved the transaction
with 98.2% of the vote. Only 1.8% voted in favor of the Deutsche
Borse offer. Jean-Francois Theodore, the Chief Executive Officer
of Euronext, stated that they expected the transaction to close
within three or four months.
Some of the regulatory agencies with jurisdiction over the merger
had already given approval. NYSE Group shareholders gave their
approval on December 20, 2006. The merger was completed on April 4, 2007, forming the NYSE