Europe’s post-trade infrastructure is vital to the functioning of capital markets, but persistent fragmentation and inefficiencies continue to drive up costs for investors and limit the competitiveness of EU companies. Euronext Securities is moving decisively with a pan-European strategy that brings competitive choice, technological innovation and long-term scalability to the core of post-trade services. A recent economic report by Oxera Consulting LLP sponsored by Euronext has demonstrated why this approach is adapted to the current fragmented post-trade markets. The report sheds light on the challenges facing the EU’s post-trade infrastructure and the growing opportunity to drive down costs, boost efficiency and improve market resilience through smarter, interoperable infrastructure.  

An economic analysis of EU CSD services 

The report, titled The Design and Functioning of CSD Services in the EU, explores the structure of Central Securities Depository (CSD) services across the EU. It responds to a growing policy focus driven by the Draghi and Letta reports (2024) and the European Commission’s recent work on the need for further consolidation or integration of market infrastructures. The analysis assesses whether Europe’s current framework can deliver more competitive and efficient outcomes for issuers and investors. 

Fragmentation and missed opportunities 

The EU is home to over 30 CSDs, mostly defined by national boundaries. This fragmentation has long been seen as a source of inefficiency and complexity, particularly for cross-border trading and settlement. However, the report challenges the idea that the only path to improvement is full consolidation into a single EU-wide CSD. Instead, it argues that effective competition can be equally powerful if the right conditions are in place. 

Competition is an effective way to address fragmentation, provided all CSDs use T2S 

The report explains that economies of scale, scope and network effects are key drivers of efficiency in the Central Securities Depository (CSD) market. TARGET2-Securities (T2S), along with regulations such as CSDR and MiFID, has established the technical and legal foundations necessary to support competition. Importantly, the report emphasises that competition does not lead to fragmentation. As long as CSDs remain connected through platforms like T2S, network effects are maintained, and users can continue to access services seamlessly. 

What’s needed now 

While the foundations for competition exist, the report notes that effective issuer and settlement competition has yet to emerge. The lack of competitive pressure has contributed to persistently high costs, limited service innovation and slower market integration. The analysis concludes that the market is now at a critical juncture, and with the right strategic interventions, competitive dynamics could deliver meaningful benefits for all market participants. 

Turning analysis into action: Euronext’s strategic response 

Euronext Securities’ strategy is a credible and ambitious response to the challenges of Europe’s post-trade. It provides the benefits of both choice and consolidation to clients. 

The strategy is anchored in three priorities: 

• Offer market participants (trading firms, custodians, settlement agents, etc.) a single point of entry to European markets: Starting September 2026, clients will become able to consolidate settlement and custody for the Belgian, Dutch and French markets in Euronext Securities, alongside Italy, Denmark, Norway and Portugal. 

• Offer issuers the best access to Euronext, Europe’s single liquidity pool: By joining Euronext Securities, issuers can support the liquidity of their shares, broaden their investor base or simplify their journey on capital markets. Euronext offers a credible alternative for the first time, which it has already proven by migrating its own share issuance to Euronext Securities. 

• Deliver technology and service innovation: Euronext is rolling out a new, future-proof, harmonised CSD platform across all CSDs it operates, delivering a better, integrated client experience and value-added services to clients. 

Together, these steps are designed to enable true pan-European post-trade integration, delivering lower costs, greater operational efficiency and more competitive services. In doing so, the expansion project also contributes to strengthening the EU’s financial sovereignty and strategic autonomy by supporting a more resilient, interconnected and autonomous capital markets infrastructure.  

Choice against fragmentation 

Euronext is offering clients a choice that did not exist before: starting September 2026, for the first time in decades, clients will be able to manage multiple European markets (France, Belgium, the Netherlands, Italy) in one single CSD.  

Euronext is building an open model: Clients can use Euronext Securities’ offering even if they trade or clear on other trading and clearing venues. Conversely, Euronext trading members will have the possibility to settle at another CSD than Euronext Securities – provided the applicable regulatory framework (CSDR and MiFID) is respected. 

Euronext’s proposal fosters market integration, thanks to the use of Target2-Securities: T2S has been designed to allow settlement across multiple CSDs with no friction or extra cost. Hence, offering a choice of CSD (provided T2S is used), like Euronext offers, does not break the liquidity pool. It rather offers clients willing to do so the ability to consolidate European markets in one CSD. 

Leading the market towards integration 

As Pierre Davoust, Head of Euronext Securities, explains: “Europe’s post-trade should be completely integrated. Capital market participants should be able to manage their operations as if Europe was a single domestic market.” 

To advance this vision, Euronext is investing in modern, value-added services, from tailored data solutions to tax processing, with the launch of its European offering in September 2026. The hub will enable participants to manage post-trade activity across Belgium, France, Italy and the Netherlands from a single securities account, simplifying operations and enhancing scale. 

Shaping the future of capital markets 

The Oxera report highlights a clear opportunity: with the right strategic action, Europe can foster meaningful competition in post-trade services. Euronext Securities is acting on that opportunity by building on regulatory progress, infrastructure scalability and operational expertise to help reshape the European post-trade environment. As the EU continues its journey toward more integrated capital markets, Euronext Securities is helping ensure it does so with purpose, scale and resilience. 

For more insights, read the original report, The Design and Functioning of CSD Services in the EU.

On 24 September 2025, Euronext celebrated the launch of the first-ever Mini Cash-Settled Futures on main European Government Bonds with bell and gong ceremonies across its Milan, Paris, Amsterdam and London offices.

Euronext's leaders Fabrizio Testa, Delphine d'Amarzit, Anthony Attia, Simon Gallagher, Janina Marks and René van Vlerken took the stage with clients, partners and teams to highlight this significant innovation in European financial derivatives, that kicked off with positive momentum.

Charlotte Alliot, Head of Financial Derivatives - EQD & FID at Euronext animated an insightful panel discussion, live from Palazzo Mezzanotte, with our guest speakers Andrea Busi, CEO of Directa, Alessandro Forconi, Head of Advanced Trading in Fideuram - Intesa Sanpaolo Private Banking, Gianni Marziali, Head of ETD Brokerage at Banca Akros and Matteo Rolle, Head of Sella Financial Markets at Banca Sella.

 Listed on Euronext Derivatives Milan, Euronext's Mini Bond Futures provide unparalleled accessibility and flexibility to hedge and gain exposure to government bonds. This initiative represents a major step forward in the fixed income space, meeting evolving market demand and delivering added value to investors.

Thank you to all our clients and partners for joining the celebrations and for their trust and support in building this new initiative.

Throwback to the bell and gong ceremonies

Interview of Charlotte Alliot, Euronext

Interview of Andrea Busi, Directa

Interview of Gianni Marziali, Banca Akros

Interview of Alessandro Forconi, Fideuram - Intesa Sanpaolo Private Banking

As part of World Investor Week, Euronext is proud to continue our Next Generation series designed to prepare young and first-time investors with the tools they need to build financial confidence. We believe that financial empowerment begins with a solid understanding of the fundamentals. 

This article is the third in a three-part series in celebration of World Investor Week designed specifically for first-time investors, with the aim of making investing more accessible, understandable and empowering for those just beginning their investment journey.  

One of the most important yet often overlooked fundamentals in investing is the stock market index. Whether you are just beginning your investment journey or simply curious about how markets function, grasping what an index is and why it matters can offer a clearer view of how economies evolve and investments grow. 

What is a stock market index? 

A stock market index is essentially a benchmark to measure how a specific group of financial assets, usually company shares, are performing at a given time. But indices cover more than just stocks – they can track bonds, commodities or even newer asset classes like cryptocurrencies. An index is comparable to a snapshot of the health and trends of a particular market segment. 

Indices serve several key purposes: 

• Tracking the overall health of a market or economy 

• Serving as the foundation for investment products such as ETFs (exchange-traded funds) 

• Acting as performance benchmarks for portfolios and investment strategies. 

The CAC 40^®: France’s economic heartbeat 

In France, the CAC 40^® stands out as the most recognised index and a symbol of national economic strength and resilience. Managed by Euronext, the CAC 40^® was created in 1987 with a base value of 1,000 points. Since then, it has reflected the changing tides of both the French and global economy from the tech boom of the early 2000s to today’s focus on luxury, innovation, energy, finance, health and defence sectors. 

In May 2024, the CAC 40^® reached a record high of 8,295 points, highlighting France’s evolving economic landscape. Companies like L’Oréal, LVMH, TotalEnergies and Michelin have been pillars of the index since its inception, demonstrating enduring market leadership. 

The AEX®: a broader view of the Dutch market 

In September 2025, the AEX^®, Euronext’s flagship index for the Dutch market, expanded from 25 to 30 companies for the first time since its creation in 1983. This change followed a thorough market consultation and reflects Euronext’s efforts to better represent the diversity and scale of the Dutch economy. By increasing the number of constituents and updating its methodology, the AEX ^® now offers investors broader exposure to leading Dutch-listed companies and improved index diversification. Alongside the CAC 40^®, the AEX^® remains one of Euronext’s most important benchmark indices, helping channel investment into national and international leaders based in Amsterdam. Euronext’s other national benchmarks include the MIB for Italy, PSI for Portugal, BEL 20 for Belgium, the OBX for Norway, and the ISEQ for Dublin. 

A reflection of the economy 

Indices  are living benchmarks. Their composition is regularly reviewed and adjusted to mirror the changing economy and the emergence of new sectors. Today’s indices are built on transparent, rules-based methodologies, giving investors clarity on what they are investing in and why. 

Euronext manages more than 1,800 indices delivering market coverage across blue-chip national indices, fixed income, ESG, crypto, and thematic sectors such as AI, healthcare, space, cybersecurity, and more, catering to the growing demand from investors seeking tailored exposure to various markets and strategies. 

How indices are created 

Creating and maintaining an index is a complex process involving financial engineers, analysts and data specialists. These teams set clear rules, calculate index values and ensure accurate, timely data dissemination, influencing billions in investment decisions worldwide. 

Indices can be broad or focused on specific themes such as clean energy, artificial intelligence, or sustainable investing. Many are developed in collaboration with banks, asset managers and other institutions to support investment products like ETFs and structured financial instruments. 

Investing with purpose 

Environmental, social and governance (ESG) factors have reshaped index design. Euronext pioneered low-carbon indices in 2008 and now offers ESG-focused versions of major indices like the CAC 40 ESG^®, AEX ESG^®, MIB ESG^® and BEL ESG^®. These enable investors to align their portfolios with personal values and global sustainability goals. 

Additionally, thematic indices tracking sectors such as healthcare, fintech or companies supporting job creation in France provide investors with targeted exposure to emerging opportunities. 

Why indices matter for new investors 

For those new to investing, indices offer insights into the market’s broad trends. Many investment products, including ETFs, are built on indices, and provide a cost-effective and diversified path to participate in economic growth, reducing risks associated with single stock exposure. 

Euronext joins the CAC 40^®: a milestone in our journey 

As of 22 September 2025, Euronext, itself a listed company, has proudly joined the CAC 40^®, marking a significant milestone in our transformation as a company from a national exchange operator to a leading, integrated European capital markets group. This inclusion recognises more than a decade of strategic growth and diversification, reinforcing our commitment to innovation, scale and supporting Europe’s financial future. 

Discover more about Euronext’s inclusion and our journey in the Euronext CAC 40^® introduction brochure. 

Learn more 

To learn more about how indices work and to access practical resources tailored for first-time investors visit the Euronext Education Centre.