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Definition: Euronext

Euronext is a stock and derivatives exchange formed after the merger of stock exchanges of Amsterdam, Brussels and Paris Bourse in the year 2000. This was done in order to take the advantage of single currency in the European Union Financial Markets. Product offering of Euronext group includes a wide range of products such as bonds, market listing data, derivative instruments, market solutions, exchange traded funds (ETF), market solutions etc. It also includes warrants and commodities. In the first quarter of June 2014, the Euronext group had the market capitalization of €2.6 trillion. It was ranked as number one in the whole continental Europe.

Euronext became Euronext LIFFE (London International Financial Futures and Options Exchange) in the year 2001 after acquiring shares of LIFFE. Hence, Euronext combines four National markets of Europe. In the year 2002, Euronext group further merged with Bolsa de Valores de Lisboa e Porto (BVLP) which is a Portuguese Stock Exchange. In the year 2007 Euronext was again merged with New York Stock Exchange group which was the owner of NYSE. However, Deutsche Bourse made several attempts to join Euronext but each time the deal was blocked because it may lead to monopoly in the European Financial Markets. In 2012, Euronext London was formed to provide the listing facilities in United Kingdom (UK).

Finally, in December 2014, Intercontinental Exchange (ICE) the owner of Euronext acquired NYSE Euronext in $8.2 billion deal. The deal was approved by all US regulators but then again Euronext separated from ICE and finally made its Initial Public Offering (IPO) in June 2014 as a standalone company.

In the year 2013, Enternext was created by Euronext as a part of its leading strategy to become a leader in the European Union for raising new capital. Enternext was formed to support the growth of Small and Medium Enterprises (SME) in the European region. Euronext also has a derivatives contract which acts as benchmark for prices for wheat in the European region.



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