How can the institutional market join the dots to encourage Retail investor access?

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How can the institutional market join the dots to encourage Retail investor access?

Euronext’s Dirk Donker joined The TRADE’s Retail Roundtable to discuss the ever-growing rise of retail, one of the industry’s hot topics in 2023 both from an innovation and regulatory standpoint.

They pointed out the differences in retail investment culture in Europe, the UK, the US and Asia, how market participants increasingly recognise the importance of treating retail investors equally and how beneficial retail engagement is for market liquidity, resulting in a greater need to explore the current barriers to entry and outline a roadmap for future progress.

At Euronext, we believe that retail investors are crucial to a diverse and healthy liquidity, one of the key factors of Euronext’s market quality, and that education is of vital importance to raise awareness for the various investor profiles, as was demonstrated in a survey with retail investors Euronext conducted jointly with ABN Amro.

In line with Euronext’s commitment to facilitate retail investor access to financial markets with superior market quality, Euronext is continuing to innovate with:

  • The expansion of its Global Equity Market (GEM), a one-stop-shop MTF that enables retail investors to trade a wide variety of pan-European and US stocks, also with a Trading After Hours session running until 20:30 CET

  • The growth of Best of Book, its best execution service for retail flow, which Euronext is working on extending in Italy and making more accessible to its retail members in light of increasing competition


Watch the four instalments of the roundtable here:

 

Episode 1

Unpacking the global landscape

Why and how markets differ from region to region

Episode 2

A closer look at behaviour patterns

How, when and what those active in these markets trade

Episode 3

The evolution of institutional access

How do they interact with the retail market and the importance of execution/price transparency

Episode 4

Regulatory hurdles

The dream of harmonisation in Europe, data access and post-trade







Thank you Annabel Smith (The TRADE), Wail Azizi (Equiduct), Nicky Maan (Spectrum), Martin Hendry (Liontrust Asset Management PLC) for these insightful interactions.