At TradeTech 2025, one of the key panels explored the critical question: What are the latest market structure and product developments that will help drive interoperability and improve ease of equity derivatives trading?
Moderated by Matt Howell, Global Head of Derivatives and Multi-Asset Trading at T. Rowe Price, the session marked the first time the event hosted a dedicated derivatives discussion, underscoring the asset class’s growing importance within Europe’s capital markets.
Euronext’s Charlotte Alliot, Head of Financial Derivatives – EQD & FI, was a leading contributor to the conversation, offering perspectives on how innovation, culture and regulatory clarity can shape a more efficient trading environment. Most notably, she explored how Euronext is responding to fragmentation and investor diversity through tailored product development, while advocating for greater transparency and alignment across venues and jurisdictions. Her insights point to a more unified and resilient future for financial derivatives in Europe.
Market structure complexity and the role of culture in equity derivatives
As market fragmentation and retail participation were a topic of discussion, the panel highlighted the increasing complexity of market structures. Charlotte Alliot opened the conversation by emphasising that while fragmentation is often cited as a core challenge, culture may be the more influential factor limiting retail growth in derivatives across Europe.
“It’s often said that fragmentation is the reason for lower retail participation in Europe,” she explained, “but that’s not the real issue. In reality, it’s a question of culture. In the US, for example, many retail investors rely on the markets to build their financial future. They don’t have the same pension systems we have in Europe, so there’s more incentive to be hands-on.”
She highlighted that Europe’s culture around financial education and local investor preferences plays a significant role in shaping retail participation in derivatives. For example, Dutch investors tend to prefer options thanks to early exposure in the national curriculum, while German investors often favour structured products like warrants and certificates. In Italy, there is a strong preference for fixed income and futures.
Recognising these nuances, Euronext has tailored its product strategy by launching mini and micro-sized contracts designed to match the needs and behaviours of each local market. Euronext’s continued product development, such as the introduction of mini futures on government bonds, which are set to launch in September, is one example of how the exchange is actively working to address these market challenges.
Driving product innovation
The panel also discussed how innovation plays a pivotal role in enhancing interoperability across diverse trading venues and market participants. Charlotte Alliot spoke to the increasing demand for more flexible and accessible derivatives products, which led to the development of mini options and other contract sizes that cater to both retail and institutional needs.
“We’re seeing strong demand for products that bridge the gap between institutional and retail traders,” she noted. “Mini options on indices like the AEX® have already been well received by the market, and we are now expanding into other asset classes, such as government bonds.”
The introduction of mini futures, which will have a contract size of €25,000, a fraction of the standard institutional size, is part of Euronext’s broader strategy to foster greater liquidity and enhance market access. The move, which also includes streamlining cash settlement and making the products easier for retail brokers to integrate, reflects a broader trend in the industry towards offering more flexible, easily tradable products that appeal to a wide range of market participants.
Ensuring a level playing field for retail participation
The discussion also centred on the growing influence of retail traders and how exchanges and market participants can better support this segment. The panel underscored the importance of education and transparency in promoting retail engagement. Charlotte Alliot shared insights into Euronext's educational initiatives, which include webinars, podcasts and tailored content in multiple languages, aimed at making equity derivatives more accessible to retail investors. The retail educational programme launched last year by Euronext is unique in Europe, as no other exchange has the links to the local trading communities.
“Education is key to fostering confidence among retail investors,” she stated. “By providing accessible resources, we can help individuals understand the value of trading equity derivatives and empower them to participate in the market with greater knowledge.”
Charlotte Alliot also highlighted the popularity of products like the CAC 40 daily options, which, since their launch, have seen growth in volume, further demonstrating the potential for retail engagement in derivatives markets. These educational efforts align with Euronext's broader mission to make the markets more inclusive and accessible for a diverse range of participants.
The future of European equity derivatives markets
The panel at TradeTech 2025 provided a compelling glimpse into the future of equity derivatives markets in Europe. Through innovative product offerings, increased retail participation and a focus on transparency, Euronext is positioning itself as a leader in driving the next phase of market evolution. With contributions from industry leaders like Charlotte Alliot, the conversation underscored the collaborative efforts necessary to navigate the complexities of the market structure as a basis to drive interoperability in equity derivatives trading. As the industry moves forward, it is clear that continued innovation, regulatory alignment and investor education will be crucial in shaping the future of European equity derivatives markets.
For further insights on how Euronext is driving broader retail participation in derivatives trading and launching new fixed income products, watch Charlotte Alliot’s interview with The TRADE.