Europe has built much of the infrastructure needed to connect its capital markets. The question now is how to make those connections work more efficiently. That was a central theme at last week’s PostTrade 360° conference in Stockholm, where Euronext joined industry leaders in looking at what the European post-trade landscape could look like in 2027 and beyond.
Technology is opening up new possibilities, while clients are looking for more efficient ways to access markets and manage their assets. At the same time, Europe is still working through the fragmentation that has historically created additional complexity to cross-border investment.
For Pierre Davoust, Head of Euronext Securities and Member of the Executive Committee at Euronext, this reflects a broader change in the role of post-trade. “Post-trade has moved from downstream processing to strategic market infrastructure,” he said during the conference’s opening panel, “The forces shaping post trade through 2027 and beyond.”
As post-trade becomes more closely connected to the wider functioning of capital markets, efficiency in this part of the value chain can have a direct impact on clients and on the competitiveness of European markets.
From ambition to delivery
But integration is not only an ambition to discuss – it must be delivered in practice. For Euronext, this means turning the infrastructure already in place into tangible improvements for clients and market participants. A concrete example is the go-live of Euronext’s new settlement model on 21 September, under which Euronext Securities will become the default CSD for equity and ETP markets through one European CSD, bringing greater simplicity, efficiency and economies of scale, while preserving choice through access to alternative CSDs. Delivered on time, this milestone puts Euronext’s ambition for a more competitive and consolidated European post-trade infrastructure into practice.
Making European markets feel more connected
Europe has already made significant progress in creating a more connected post-trade environment. The introduction of TARGET2-Securities (T2S), together with the network of connections between CSDs, has created important foundations for cross-border settlement. But infrastructure alone does not remove all of the barriers to cross-border investment.
During the panel “2027’s CSD agenda”, Olga Jordão, CEO of Euronext Securities Milan and Porto, highlighted the importance of making better use of the tools that are already available. For investors, the ambition should be for investing in another European market to feel as straightforward as investing in their domestic market. For issuers, it means having access to a deeper pool of European liquidity without having to navigate unnecessary complexity.
CSD links can play an important role in this. They allow market participants to connect across markets and can reduce the number of steps involved in cross-border settlement. But, as the discussion highlighted, links are only part of the picture. Differences in tax treatment, legal frameworks and market practices can still create complexity further along the investment chain.
The next step for European integration is therefore not simply about creating more connections, but about making existing infrastructure work more effectively for the people using it.
Turning European integration into client choice
This evolution is also changing the competitive landscape for CSDs. In the panel “Settling in: understanding the evolution of post trade in France, Belgium and the Netherlands”, Jérôme Blais, Head of European Expansion at Euronext, focused on the role that competition can play in improving the experience for clients. “Clients want an outcome. They want operational excellence,” he explained. Competition can help create the incentive to improve services and find better ways of meeting those expectations.
Choice is becoming increasingly tangible in the European settlement landscape. From 21 September, Euronext Securities will become the default place of settlement for securities traded on Euronext Amsterdam, Brussels and Paris, while market participants will remain free to choose where they settle.
For Euronext, this is an important step towards a more open model, where CSDs compete to offer the services and expertise that clients value. Price is one consideration, but so are service quality, predictability and the ability to meet different client needs.
The shift also reflects a wider change in the European market. As Jérôme Blais noted, the industry has spent many years building the infrastructure that connects European markets. Euronext is now putting those foundations into action, moving from the ambition of greater integration to a model that gives market participants greater choice in practice.
Looking beyond today's infrastructure
At the same time, the post-trade industry is preparing for changes that go beyond today's market structure. Artificial intelligence, tokenisation and digital assets are already changing the conversation around how financial markets operate. Pierre Davoust noted that AI could have a particularly significant impact, with the potential to improve productivity across the post-trade industry. But the challenge will be taking these technologies from individual applications to adoption at scale.
The same applies to tokenisation. Rather than replacing existing market infrastructure overnight, the transition towards digital assets will need to work alongside the systems and assets that already exist.
Changing expectations around market opening hours could also have an impact. As some markets move towards longer trading windows and digital assets operate continuously, questions around when markets trade, when transactions settle and how liquidity is managed will become increasingly relevant.
These developments will bring new questions as well as new opportunities. Faster and more continuous markets are not necessarily better in every circumstance, and the industry will need to consider the impact on liquidity, operational resilience and the way market participants manage their businesses.
From building the rails to delivering the next phase
The discussions in Stockholm showed that Europe's post-trade industry is entering an important next phase. Much of the infrastructure needed to connect European markets is already in place. The challenge now is to make those connections work better, reduce unnecessary complexity and give issuers and investors greater choice.
For Euronext, this means continuing to turn its vision for a more integrated European post-trade landscape into tangible outcomes for clients, while investing in the infrastructure and services that support them today and preparing for the changes that will shape capital markets in the years ahead. The 21 September go-live is a step in that direction, putting this approach into practice across multiple markets.