Mid-cap securities trading is evolving

Innovative measures promote trading of mid-caps

To improve the liquidity of mid-size stocks, Euronext is rolling out new measures to reshape and improve its market model on SMEs. The aim is to increase the liquidity on these securities by offering an efficient and adapted trading model.

To this end:

  • Listed companies that are traded at fixing will now benefit from a double fixing at 11:30 and at 16:30,
  • and from the “Trading at Last” allowing investors to operate with a unique price in a particular time frame (from 11:30 to 15:00 and from 16:30 to 17:30). This represents a “hybrid” model between continuously traded instruments and fixing only.

Euronext as also decided to deploy a randomisation mechanism to all securities for the opening and closing price in order to secure the price formation process. Since July 2017, Euronext has been adding small and midcap securities to its Euronext Block service*, allowing investors to execute large-sized orders on this segment. To know more on Block trading:  https://www.euronext.com/en/news/euronext-partners-ax-trading-launch-pan-european-block-trading-mtf

* the launch of Euronext Block is subject to the approval of regulators.