Evolution in the Operation, Governance, and business Models of Exchanges: Regulatory Implications and Good Practices
As an operator of a group of exchanges, we call on IOSCO to recognise the diverse way in which regional capital markets are developed and exchanges are operated.
We ask that IOSCO acknowledges in its Good Practices the reality of exchanges operating within group constructs in Europe, maximizing efficiencies under applicable regulatory frameworks that ensure good governance, the management of risks and conflicts.
Euronext’s contribution to consolidation
We have led the way in reducing fragmentation by making important strides in EU capital markets integration. Our deep single liquidity pool now spans seven European countries, with a diverse investor base trading via a single trading technology on the basis of harmonised rules. It is clear that market-driven initiatives such as these contribute to capital markets integration.
As a true pan-European financial markets infrastructure provider across trading, clearing and settlement, Euronext helps overcome issues of fragmentation, providing benefits to investors and issuers alike.
Euronext suggestions with respect to the Governance of exchanges
When exchanges choose to consolidate, supervisory practices should not prevent them from introducing group efficiencies that support their clients’ needs, delivering shareholder value. At the very least, there is a need to allow for further streamlining of group efficiencies: the concept of group application should be considered in this case too, and duplication of roles and divergence of requirements should be eliminated.
More information
Our full position on this report can be downloaded below.
Also relevant is our view on the progress of the Capital Markets Union.
Download Euronext Reponse to the IOSCO Consultation Governance July 2024