Euronext introduces the European Common Prospectus to accelerate capital market integration and boost IPO activity across the EU.

Introducing the European Common Prospectus

Euronext has launched the European Common Prospectus, a single, standardised template for equity issuances that enhances capital market integration and cross-border investment across Europe. 

To permit long-term European competitiveness and innovation, improving access to European capital markets is essential. While the Listing Act, aimed at simplifying European listing rules, is not expected until June 2026, there is an immediate need to boost IPO activity in Europe. To meet this need, Euronext began to develop its new European Common Prospectus in November 2024, following the publication of the Listing Act.

Harmonisation and standardisation of prospectuses

As the backbone of the Capital Markets Union, Euronext has continuously simplified listing rules, with harmonised rulebooks to enable issuers to tap into our single liquidity pool powered by our single trading platform Optiq®. This new prospectus, designed for use across all Euronext countries, complies with existing EU regulation and offers immediate benefits to both issuers and investors.

The use of the European Common Prospectus is strongly encouraged for IPOs and other equity offerings across Euronext markets. It is already available and can be used immediately. It complements existing prospectus formats, such as the use of tripartite prospectuses, or the EU Growth Prospectus for SMEs and the Follow-on Prospectus, depending on the type of offering.

For issuers: an easy-to-use prospectus template

This streamlined template simplifies and harmonises the equity listing process across all seven Euronext markets—Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo and Paris—reducing complexity and preparation time for issuers by replacing the traditional 21-section structure with 11 sections. The prospectus uses English to enhance comparability and cross-border access to capital, ensuring greater consistency for investors across jurisdictions. 

The template is designed to be flexible and adaptable, ensuring it meets current regulations while being ready to incorporate future changes under the Listing Act, expected to apply from June 2026.

For investors: consistency and comparability of information

The European Common Prospectus ensures greater consistency in how companies present their information, supporting better decision-making across jurisdictions. It offers much-needed consistency and comparability across EU jurisdictions. Whether the prospectus is for a listing in Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo or Paris, investors will now be able to assess offerings based on a shared structure and language – making it easier to evaluate opportunities and make informed investment decisions. 

To ensure broad support and practical implementation, Euronext sought support from European stakeholders including ECM bankers, legal advisors, auditors, investors and issuers.

In summary, the European Common Prospectus brings clear benefits to:

The European capital markets:

• Enhances competitiveness
• Promotes cross-border investment
• Provides a consistent and comparable format

Issuers and investors:

• Easy-to-use template that reduces complexity
• Simplified drafting process (11 sections instead of 21)
• Better comparability 
• English as the accepted language across jurisdictions 

More about the European Common Prospectus

To learn more about the European Common Prospectus, read the full press release and:

download the European Common Prospectus template

Interested in listing on Euronext? Visit euronext.com/en/raise-capital

Euronext has released its latest report, the Capital Markets Update, offering a data-driven overview of current trends in equity markets and investor sentiment since the beginning of 2025.

Impact of recent global developments on European equity markets

The beginning of 2025 has been a volatile period for issuers and investors as markets continue to adjust to ongoing geopolitical and macroeconomic developments.

Euronext Capital Markets Update

Euronext's report shows an increase in market volatility broadly consistent with historical patterns observed during periods of macroeconomic stress. The current environment appears to be driven by a combination of forced derisking and elevated macroeconomic uncertainty. While this phase may feel pronounced, historical precedent – including episodes such as the COVID-19 market response – suggests that such conditions tend to normalise once initial adjustments are absorbed.

Download the report

Key insights

• Volatility trends:  Equity markets are facing significant volatility, with the VIX averaging 31 last week (14-20 April) — well above the 5-year norm of 19 — after peaking at 52 in early April. This level, while below those of past crises (COVID-19: 82, Ukraine war: 36, inflation fears: 34), still reflects elevated stress. Historically, the VIX returned to normal within 1.5 to 8.5 months post-crisis. Current spikes are triggering forced selling, especially on large-cap stocks.

• Market impact of recent US tariffs: The latest tariff announcements have triggered a sharp increase in trading volumes across Euronext markets in early April, particularly impacting large-cap stocks, while activity in mid- and small-caps remained largely stable. The third week of April saw a return to more normal levels, reflecting a stabilising global market environment during a shortened trading week.

• Sector performance and market rotation: Since the announcement of new US trade tariffs, Euronext markets have shown selective resilience in April, with Real Estate and Consumer Staples standing out in positive territory despite global trade tensions. While some sectors—particularly Energy, Telecoms and Financials—faced pressure due to their exposure to global trade and interest rates, others such as Healthcare and Utilities demonstrated relative stability. Cyclical segments like Tech and Consumer Discretionary experienced only modest pullbacks. Encouragingly, European indices remained resilient last week, supported by strong corporate earnings and renewed optimism in Asian markets regarding trade prospects.

For more information, we invite you to download the report.  

Should you have any queries, please contact the Euronext team. 

Building the future of post-trade in Europe: leadership, innovation and progress 

As we approach the end of a very busy year, many of you are surely looking forward to a well-earned break and time to recharge. 

2025 has been a very eventful year. Across geopolitics, the macro-economy and markets, we have navigated a complex landscape together. We were all proud to observe that, once again, the post-trade infrastructures industry in which we all play a key role has allowed issuers, investors and all capital market participants to trade, invest and raise capital, even in difficult or very volatile market conditions. 

Before you go on a well-deserved break, this newsletter will give you a brief update about the latest developments from Euronext Securities and the key steps we are taking together towards better and stronger European capital markets. 

Our “European Offering” initiative is gathering momentum, and we are encouraged by many of you saying that we are rightly shaking up a status quo that has lasted for far too long. From the expansion of our issuer CSD passports to new jurisdictions, extending the asset class coverage, building strategic partnerships with issuing agents, launching innovative tax and shareholder identification services, and the successful onboarding of clients for cross-border ETF settlement, we are making tangible progress. Recent milestones include a simplified settlement fee schedule in Milan that will clearly benefit our clients centralising their flows within our European model, and a €425 million convertible bond issuance via our platform, all supporting a truly connected European capital market. In parallel, our efforts to roll out new, future-proof, harmonised platforms across markets are progressing well. 

Our mission of converging to a future-proof platform and aligning processes across our five CSDs is rolling out. Our corporate events platform project has entered a critical phase, as you are now testing the new platform across Denmark, Italy and Portugal. The go-live will happen in January 2026 in Portugal, June 2026 in Italy and September 2026 in Denmark. In the meantime, after a very constructive process with Danish market participants, August 2028 has been agreed as the date for the migration of the Danish market to the brand-new platform. There is no European success without a Nordic dimension, which is why we greatly value the opportunity to collaborate with the Nordic community on this important project for the future of market infrastructures in the region and beyond. 

On the other side of Europe, we recently announced the success of our tender offer for ATHEX Group, the Greek market infrastructure. This transaction reinforces Euronext’s leadership in Europe and adds a fifth CSD, AthexCSD, to Euronext Securities’ network. 

We are also pleased to share recent leadership developments. The appointment of Olga Jordao as CEO of Euronext Securities Milan, alongside her ongoing leadership of Euronext Securities Porto and our business operations, is a testament to our commitment to strong, cross-market leadership and continuity for our clients. Olga’s experience and dedication will be instrumental as we further integrate our CSDs and drive operational excellence across all our locations. 

Finally, we warmly welcome the European Commission’s Market Infrastructure Package, a meaningful step towards a stronger Savings and Investments Union. A couple of months ago, Oxera Consulting prepared a report on the design and functioning of CSD markets in Europe (insert link here) and we are happy to see that the vision of a competitive, interconnected post-trade infrastructure leveraging Europe’s common settlement platform, Target2-Securities, described in the report, is fully aligned with European policymakers’ proposal. Euronext Securities is proud to be leading this transformation, working in close partnership with clients, market participants and regulators. 

Looking ahead to 2026, at Euronext Securities we will be focused on continuing to deliver the European CSD of choice for issuers and investors. We will also accelerate our convergence programme, which is central to building a unified future for post-trade services across Europe. We will continue innovating by further improving our added services on data and tax services to support our clients' needs. We are also looking forward to welcoming ATHEX clients and collaborators to further strengthen our unique European offer.   

I invite you to explore these articles and to engage with our teams as we continue to build the future of post-trade together. 

Thank you for your trust and partnership. 

Best wishes 

Pierre Davoust 



The rapidly evolving geopolitical landscape presents unprecedented challenges for Europe. 
In this context, all stakeholders, including policymakers, have a role to play. 
However, it is also incumbent upon us, as an industry, to take action. 

Euronext Securities is taking action 

At Euronext, we hold two strong beliefs: 

• first, this period offers a significant opportunity to simplify, expand, and make our markets more cost-effective, thereby creating growth opportunities for all. 

• Second, success stems from successful partnerships with you, our clients. 

Therefore, we aim to regularly share our insights on market trends and hot topics, featuring our experts to provide you with the latest updates on our strategic projects and explain the innovative solutions we are developing to meet your strategic needs. 

To contribute to our collective objectives, let us highlight three significant initiatives with tangible value for you that we are delivering together. 

Our initiatives

Firstly, together, we are implementing a common platform to support Central Securities Depositories (CSD) activity in Europe, beginning with the four CSDs we operate in Copenhagen, Milan, Oslo, and Porto. The objective is straightforward: to provide you with the best service in the long term by transitioning from fragmented, ageing systems to a future-proof European platform that benefits both our global and local clients. 

Second, we propose to manage more European markets through our European CSD model. We recently announced that the settlement of equity and exchange-traded fund (ETF) transactions on Euronext Amsterdam, Brussels, and Paris, will be centralised in Euronext Securities Milan by September 2026. This strategic move will offer increased cross-border trading opportunities, allowing you to navigate multiple markets with ease and enhancing liquidity. Operations will become more efficient, post-trade costs will be reduced, and adapting to regulatory changes will become more straightforward, such as the adoption of the T+1 settlement cycle by October 2027.  In doing so, we are offering a valid and innovative alternative for issuers and intermediaries through a truly European CSD model. 

Third, we are continuing to develop added-value services to help you focus on what is strategic for you - whether it is growing market share, entering new markets, or transforming your operations.  This includes expanding our data services catalogue and leveraging our recent acquisition of Acupay to boost our tax services offering. 

People often think of post-trade as the plumbing of financial markets. Some forget that the collective intelligence, hard work, and commitment of the “plumbers” who design and improve this infrastructure daily are essential to making these markets work. 

That is why I want to warmly thank you for the strong engagement you have shown so far in embarking with us on this ambitious journey. We look forward to shaping European markets for future generations together!

Author: Pierre Davoust, Head of Euronext Securities 
 

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Euronext enhances the CSD model

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CSD Convergence Programme

Introducing Acupay and BondCom

Preparing for T+1

The 13^th edition of the Euronext Annual Conference, held at Pavillon Gabriel in Paris, brought together influential leaders in finance, business and government to discuss the critical challenges shaping Europe’s capital markets, economic integration and long-term global competitiveness. 

The theme of this year’s conference, “Building the Savings and Investments Union for real,” provided a platform for a series of engaging discussions and panels that addressed pressing topics such as Europe’s financial future, innovation’s role in market evolution, defence spending, sustainability and the reform of equity markets. Below are some of the key highlights of the themes discussed at this year’s conference, which welcomed over 1,000 attendees and included keynote speeches and panel discussions from all four female CEOs of the CAC 40^®.   

Strategic autonomy amidst geopolitical challenges 

Global geopolitical challenges were a central theme in numerous keynote speeches and panel discussions throughout the conference, notably the ongoing conflict in Ukraine and rising global uncertainties. Stéphane Boujnah, CEO and Chairman of the Managing Board of Euronext, opened the conference by emphasising the necessity of building Europe’s strategic autonomy. He highlighted that it is now vital for Europe to have resilient, competitive capital markets that can support long-term growth and ensure a secure, adaptable financial infrastructure, and underscored Euronext's role in this transformation. 

A critical need for the European Savings and Investments Union 

In his keynote address, Eric Lombard, French Minister of Economy, Finance, and Industrial and Digital Sovereignty, emphasised the importance of strengthening Europe’s position as a global financial hub, particularly post-Brexit. He also underscored the need for greater investment in European defence. 

Meanwhile, Sébastien Lacroix, Senior Partner at McKinsey & Company, addressed Europe’s competitiveness gap with the US. He called for the creation of a true European Savings and Investment Union to better allocate household savings, reform equity markets, and harmonise regulations, ensuring long-term investments in key sectors like AI and semiconductors to enhance Europe’s global competitiveness. 

Decarbonisation and green financing 

One of the most pressing topics during the conference was Europe’s decarbonisation efforts, and how capital markets can play a crucial role in achieving Europe’s green transition goals. A panel discussion including speakers from Veolia, Engie, the French energy market regulator CRE (Commission de régulation de l’énergie), Crédit Agricole and Euronext focused on the need for substantial investments to address hurdles like grid connectivity, regulatory obstacles, and price signals. Improved market integration, clearer regulatory framework and better incentives to channel private capital into sustainable investments are needed. They noted that despite their potential, smaller, riskier ventures such as hydrogen technologies face greater challenges. 

A manifesto for a more integrated capital market 

The 13^th Annual Conference also saw the launch of the Manifesto for better corporate financing through capital markets, a call by key stakeholders in the French marketplace to mobilise European savings towards riskier assets, particularly stocks, to support local businesses. Despite the EU’s high savings rate, much of the capital is invested outside Europe. The manifesto advocates for increased exposure to equity markets, the creation of a "European label" with tax incentives and revitalisation of securitisation to improve liquidity for small and mid-cap stocks. The manifesto aims to redirect savings into local investments, fostering stronger and more integrated European markets.  

Euronext recognises market excellence with the Euronext Awards 

The conference also celebrated excellence in market operations with the annual Euronext Awards, hosted by Delphine d’Amarzit, CEO of Euronext Paris. Notable winners included Exosens, who received the Large Cap IPO Award for its successful €350 million listing, LightOn, who won the Small and Mid-Cap IPO Award, and Waga Energy who won the Small & Mid Cap Capital Increase. Roquette earned the Bond Issuance of the Year Award for its innovative senior and hybrid bond issuance, while Engie’s €3.8 billion green bond issuance won the ESG Bond Issuance of the Year Award, solidifying the company’s leadership in sustainable finance. 

Trends in the ownership of the CAC 40^® and SBF 120^® 

Mathieu Caron, Head of Primary Markets at Euronext, presented the most recent ownership study of the French flagship indices, the CAC 40^® and SBF 120^®. Key trends include the growing influence of family-owned businesses, now holding 21.2% of the shares in companies that make up the CAC 40, especially in luxury sectors. The French state’s stake rose to 2.5%, bolstered by defence and aerospace sectors. Institutional investors remain dominant, though passive funds have seen growth. Individual investors now hold 5.4% of the CAC 40. Overall, the top 10 shareholders control 30% of the index, reflecting a concentration of ownership and a shift towards more diverse market participation. Read the full CAC 40 and SBF 120 ownership study.  

Shaping the future of European capital markets 

As Euronext celebrates its 25^th anniversary, the group’s dedication to fostering an integrated European capital market remains a central focus. Stéphane Boujnah closed the event by urging participants to remain actively engaged in building the European Savings and Investments Union and highlighted the importance of collaboration between financial institutions, regulators, and businesses to drive economic growth across Europe. For more information about the conference and to learn about the speakers, visit the Euronext Annual Conference website.  

By Egidio Onesti.

The bond market, traditionally known for its stability, is undergoing a significant transformation. This change is driven by the rapid adoption of technology and the evolving regulatory landscape. The bond market landscape is evolving, with Algorithmic trading gaining considerable momentum, creating  opportunities but also presenting new challenges. This article explores Euronext’s innovative response to these emerging market dynamics.

Over the past ten years, the European bond market has undergone significant transformations driven by technological advancements and the increasing use of algorithmic trading. Recent events have confirmed the growing impact of electronic and algorithmic trading on market dynamics, influencing liquidity, efficiency, and the overall structure of the bond market.

Among the most recent developments, it is worth highlighting the publication of the European Stability Mechanism’s (ESM) report “Electronic trading – a boost to ESM bond market resilience” in November 2024. The report strongly endorses electronic trading in bond markets, stating that the evolution of electronic markets supports market efficiency by increasing secondary market liquidity and improving the efficiency of primary markets.

"These advantages enable the ESM to issue bonds more effectively, in support of its mission to uphold financial stability in the euro area."

Indeed, ESM data on €1.2 trillion in transactions involving its securities, show that the share of electronic trading has risen significantly. Value has risen from 40% to 60% over the past decade, while number of trades has increased from 55% to 80%.

Figure 1 - A diagram illustrating ESM and SFSF bond operations - Source [1]

This transformation is clearly illustrated by the chart in Figure 1, which shows MES and EFSF bond transactions over nearly a decade. Blue represents electronic trading, yellow represents voice trading, and the size of the circle indicates the transaction size.

Even more noteworthy is that electronic trading is no longer limited to smaller transactions; high-value trades exceeding €50 million are now routinely executed electronically.

Even more surprising, however, was the result of the analysis of electronic trading volumes during periods of extreme bond market volatility, such as the critical phases caused by the COVID-19 pandemic, the Federal Reserve's interest rate hikes in 2002, or the turmoil triggered by the collapse of Silicon Valley Bank in 2023.

In instances of great uncertainty and instability, electronic trading volumes dropped by up to 10% on days when bond market volatility reached the 99th percentile. However, volumes returned to normal within a few days, highlighting the stabilising effect of electronic trading during market stress.

The transformation of the corporate bond market has been more significant still. After decades of inertia, the share of trading volumes on electronic platforms grew substantially after the pandemic. In fact, following the pandemic, many companies increased bond issuance to cope with economic uncertainty, leading to record-high issuance volumes.

The number of credit market participants grew, the number of transactions increased, and more and more trades were handled electronically, though initially, they were smaller transactions. A contributing factor was the increase in the speed of technology, paired with a simultaneous fall in technology costs. Additionally, the introduction of young traders into the market, the increasing collection of data and analytics, and the development of pricing strategies fuelling further trading strategies, ETF arbitrage, and portfolio trading all played a role in this shift in market dynamics.

Bloomberg’s acquisition of the most widely followed bond indices, and their dissemination via its terminals further accelerated this trend. This evolution created undeniable benefits for investors, cementing the shift as irreversible.

Figure 2 – Percentage of electronic bond trading (%) - Source: Coalition Greenwich

The chart shown in Figure 2 illustrates the US bond market’s transition toward electronic trading, highlighting its varied impact across different segments based on the characteristics of the securities. Both the investment-grade and high-yield segments have seen an increase in electronic trading penetration. Notably, even less liquid and more fragmented markets, such as the high-yield segment, have experienced an expansion in electronic trading. This suggests that technologies and algorithms are becoming increasingly sophisticated, enabling greater adoption even for more complex instruments and less liquid, fragmented markets.

The spread of algorithmic trading, alongside major disruptive events, such as the "flash crash" of 6 May 6 2010 − when the US stock market suffered a sudden collapse – has created unprecedented challenges for regulators. In Europe, the implementation of MiFID II in 2018 introduced stringent rules, requiring greater transparency, rigorous algorithm testing, and detailed transaction records. Companies today must now ensure that their algorithmic trading systems comply with regulations, guarantee operational continuity, and operate securely by conducting thorough risk and transparency checks in their operations. Once again, technology has become a key tool in regulatory compliance. Both regulators and companies have started developing advanced monitoring and analysis systems that help detect and prevent abusive, suspicious, or irregular market behaviours in real time, thereby ensuring market integrity.

In the "MiFID II/MiFIR review report on Algorithmic Trading," published in September 2021, ESMA acknowledged the overall positive feedback from stakeholders of the MiFID II framework for algorithmic trading, finding no fundamental issues. It concluded that the existing regulatory framework has effectively met its objectives. However, ESMA identified specific areas for improvement, particularly regarding Regulatory Technical Standard 6 (RTS 6), which outlines the organisational requirements for investment firms engaged in algorithmic trading.

ESMA proposed enhancements to the organisational requirements established in RTS 6, including:

• Improving testing and deployment protocols for trading algorithms;
• Implementing robust risk controls, such as a "kill switch" functionality to promptly stop malfunctioning algorithms;
• Mandating comprehensive self-assessments to ensure that firms' systems and controls are effective and up-to-date.

The proposed recommendations aim to simplify and enhance the existing framework, ensuring that it remains strong and adaptable to evolving market dynamics. These insights have been presented to the European Commission for consideration in future legislative initiatives, reaffirming ESMA’s commitment to maintaining a fair, transparent, and secure trading environment within the EU.

Euronext's approach to algorithmic trading

The rise of algorithmic trading has intensified competition among market participants. To remain competitive, financial institutions have needed to significantly increase investments in advanced technological infrastructures and low-latency systems. These investments not only enable faster trade execution, but also allow real-time responses to market fluctuations, thereby improving operational efficiency.

In this evolving landscape, Euronext’s ultra-low latency trading solution, Traderpath, exemplifies how technology can transform market interactions by providing a modular suite of multi-market and multi-asset services for professional trading.

Within this Euronext solution, algorithmic trading functionalities are delivered through the Algopath module, which enables the implementation of sophisticated trading, quoting, and pricing strategies. Algopath is an open, high-performance, low-latency, and scalable algorithmic environment. It offers access to pre-integrated standard algorithmic strategies, along with an intuitive user interface for quickly and easily building and testing proprietary algorithmic models.

Algopath stands out for its technological and commercial neutrality, as it is designed to integrate seamlessly with any third-party trading platform. To meet market demands that require an extreme focus on latency, Algopath has leveraged all available technologies in a synergistic manner to achieve ultra-low latencies on conventional hardware.

Figure 3: Technologies used by Traderpath to reduce latency in ultra-low latency systems – Source: Euronext

However, to fully exploit the opportunities arising from achieving extremely low latencies, the ideal topological placement of ultra-low latency solutions is as close as possible to the core of trading and market data, meaning colocation with the market itself. This ensures the fastest possible access by eliminating all potential latencies introduced by the network.

When considering Euronext services, colocation within the Bergamo infrastructure offers additional benefits to its users, including:

• Reduction of propagation delay: fewer components for packets to pass through;
• Reduction of transmission delay: physical proximity to matching engines and market data infrastructure;
• Reduction of processing delay: significantly fewer components involved in packet processing.

These benefits translate into clear functional advantages, such as improved algorithmic trading performance, increased likelihood of accessing available liquidity, the ability to react more quickly to market changes, and the elimination of network capacity constraints.

Focusing on bond markets, it is important to note that in May 2024, MTS − the largest European market for supranational and government bonds − successfully migrated its Data Centre to the Aruba Global Cloud Data Centre in Bergamo. This synergy between Traderpath, Euronext Colocation, and MTS positions the European exchange at the highest level of competitiveness in providing solutions for algorithmic trading in European bond markets.

Having trading strategies co-located with the cash market is not always enough to complete bond market operations effectively. The need for synchronised, high-speed operation across multiple markets requires algorithms to be co-located in multiple trading venues. For example, it is common to trade simultaneously on a cash market like Euronext MTS in Bergamo and the Eurex futures market in Frankfurt to hedge risks through derivatives trading.

To meet this requirement, Traderpath's technology has developed a high-performance cache distributed across a network of installations, allowing algorithms to always use co-located data. As a result, no data is transferred between different geographic trading venues − only signals − significantly increasing the efficiency of the entire distributed system.

Euronext's approach to MiFID-RTS 6

Within the regulatory framework established by MiFID II, Regulatory Technical Standard 6 (RTS 6) plays a crucial role in preventing and managing disorderly market scenarios. MiFID II was designed to strengthen market integrity and mitigate systemic risks, particularly those associated with algorithmic trading. Through RTS 6, MiFID II specifies the regulatory obligations that investment firms must meet to ensure their algorithmic trading strategies function correctly, even under stressed market conditions and do not create or contribute to disorderly market conditions.

A "disorderly" market is characterised by behaviours that disrupt the natural balance of supply and demand, causing instability. This can result not only from technological malfunctions but also from poorly designed algorithms; or an algorithm’s inability to respond adequately to exceptional or stressful market conditions.

To mitigate these risks, RTS 6 requires investment firms to establish and implement clear methodologies for developing, testing, and validating their trading algorithms. Tests must be conducted in dedicated environments, separate from production environments, to avoid interference with real markets (Article 7). These environments may be internal or one provided by a trading venue or vendor.

Testing systems must be capable of simulating real market conditions, both stable and disorderly. This allows for evaluating the algorithm’s behaviour in adverse events such as drastic price movements, excessive volatility, or limited liquidity.

Additionally, firms are required to conduct periodic validation of their algorithmic strategies and related systems. This validation must include a performance review under both orderly and disorderly market conditions, along with a report demonstrating regulatory compliance.

Through these measures, RTS 6 aims to ensure that algorithms are robust and ready to react to unexpected situations so that markets maintain their integrity, avoiding episodes of high volatility or manipulation. This, in turn, helps investors maintain confidence in financial markets even during periods of turbulence and ensures that algorithmic trading − now an essential element of financial markets − is not considered a risk factor.

To assist investment firms in meeting the requirements of RTS 6, Euronext has developed Regpath, an integrated solution that provides a comprehensive framework for testing and validating trading algorithms.

Figure 4 - Regpath high-level architecture view – Source: Euronext

In accordance with the RTS 6 guidelines for investment firms engaged in algorithmic trading, Regpath integrates the bank's existing algorithmic trading solution with an independent, production-like ecosystem that allows for testing and validating algorithms on different trading venues. Regpath offers flexible integration, functioning both as a standalone system that connects to an organisation's internal or third-party trading platforms, and as a module within the Euronext trading suite. This versatility adapts to various operational setups, ensuring that companies can adopt the solution without having to completely overhaul their existing systems.

Distributed both on-premises and as a SaaS managed by Euronext Technology Services, the solution leverages Euronext's multi-asset trading technology to provide an independent means for executing test scenarios, helping companies refine their algorithm development processes and risk controls.

The platform supports testing across multiple asset classes, allowing companies to evaluate their trading algorithms independently of the methodologies used for their development. This ensures impartial evaluation and compliance with regulatory standards, as required by RTS 6. By emulating the protocols of different trading venues, Regpath enables the trading platform to interact as if it were connected to real markets. This feature facilitates realistic test scenarios, crucial for assessing algorithm performance under diverse market conditions.

Furthermore, Regpath creates a completely abstract environment where different market participant behaviours can be simulated, generating disordered market conditions. This capability allows users to configure market emulators, manage test scenarios that simulate both orderly and disorderly market conditions, and generate reports to demonstrate algorithm resilience and compliance − Table 1 lists the available scenarios for bonds. This is done in total independence from the trading system, allowing algorithms to be tested within their target platforms, ensuring compatibility, transparency, and adherence to regulatory standards.

Table 1 - Test scenarios available in Regpath for Bonds - Source: Euronext

References:

_{[1]        The ESM electronic bond trading - Robin Wigglesworth, December 2024
www.ft.com/content/78851a71-c3be-40cb-91ca-95dd9f5a1e0b}

_{[2]        Credit trading finally exits the Dark Ages, April 2023
www.ft.com/content/8d30cdd3-cd5d-44c4-8ef2-b83ba62df295}

_{[3]        ESMA - Article 17 Algorithmic trading
www.esma.europa.eu/publications-and-data/interactive-single-rulebook/mi…}

_{[4]        Final report Benchmarks RTS
www.esma.europa.eu/document/final-reportbenchmarksrts}

_{[5]        MiFID II Review Report, 2021
www.esma.europa.eu/sites/default/files/library/esma70-156-4572_mifid_ii… algorithmic_trading.pdf}

_{[6]         Algorithmic trading: discover Algorithmicpath | Euronext
www.euronext.com/en/technology/trading-solutions/algorithmicpath-for-tr…}

_{[7]        Euronext Data Center
www.euronext.com/en/technology/euronext-data-centre}

_{[8]        Regpath | Euronext
www.euronext.com/en/technology/trading-solutions/regpath}

As part of its plan to address market fragmentation and deliver a unified European CSD solution for issuance, settlement and custody, Euronext has taken a major step towards streamlining post-trade operations across Europe by announcing the consolidation of the settlement of equity trades and Exchange-Traded Funds (ETFs) in its Amsterdam, Brussels, and Paris markets under Euronext Securities. As of September 2026, these markets will join those already supported by Euronext Securities in Lisbon, Milan, and Oslo. This initiative aligns with Euronext’s commitment to improving market efficiency and advancing the European Savings and Investment Union.

A key milestone achieved

As a listed company, Euronext N.V. changed the issuing CSD of its own to Euronext Securities Milan in March this year, marking a significant milestone in the overall transition. This move demonstrates Euronext’s confidence in its model and provides a proven blueprint for further issuer migrations. It also strengthens Euronext Securities Milan’s position as a European Issuer CSD. 

Benefits for market participants

The consolidation of settlement under Euronext Securities Milan brings several advantages for market participants:

• Increased trading and investment opportunities by simplifying cross-border transactions, in particular for retail investors
• Reduced post-trade costs through a single CSD covering multiple markets
• Streamlined market access with a single CSD membership across key European markets, not only for settlement but also to safekeeping purposes, thanks to its ability to support asset servicing requirement for French, Belgian and Dutch securities.
• Enhanced liquidity and operational efficiency by centralising settlement activities
• Easier adaptation to regulatory changes, particularly ahead of the planned transition to T+1 settlement in October 2027.

Next steps in the transition

The execution phase has now begun. In the coming months Euronext Securities will:

• Engage with clients through market-wide discussions to ensure readiness and alignment
• Deliver technical specifications, client documentation and test plans over the course of Q2
• Begin the transition for those issuers who have already decided to move their shares and finalise agreements with issuer agents

This initiative marks a decisive step in strengthening European capital markets, reducing fragmentation, and enhancing competitiveness on a global scale. By consolidating issuance, settlement and custody, Euronext is delivering a more integrated and efficient marketplace for issuers, investors, and financial institutions.

Author: Jerome Blais
Head European Expansion, Euronext Securities

As the financial industry prepares for the transition to a T+1 settlement cycle, significant changes are on the horizon for corporate events processing. The European Securities and Markets Authority (ESMA) has recommended that this transition take effect by 11 October 2027, marking a fundamental change in how transactions are settled across European markets.  

Leading the initiative to analyse the impacts of T+1 on corporate events and to provide recommendations aimed at enhancing compliance with international standards is the Corporate Events Group (CEG).    

The CEG operates under the governance of the Advisory Group on Market Infrastructure for Securities and Collateral (AMI-SeCo), a European Central Bank (ECB) forum that brings together central banks, financial market infrastructures, and market participants to foster harmonisation and integration of post-trade services in Europe.  

What is changing with T+1?

The move to T+1 reduces the time between the execution of a trade and its final settlement. Traditionally, European markets have operated on a T+2 cycle, where settlement occurs two business days after a trade is executed.  With T+1, settlement will occur in just one business day, aiming to:  

• enhance market efficiency
• reduce counterparty risk
• improve liquidity

To accommodate the T+1 settlement cycle, several key changes are required in the processing of corporate events. These changes are designed to ensure that key dates align with the new requirements, processes are automated to enhance efficiency, and compliance gaps with European corporate event standards are addressed.   

Aligning key dates

One of the primary adjustments involves the alignment of key dates for various corporate events.  Key events such as distributions, mandatory reorganisations and voluntary reorganisations will need to conform to the shortened settlement cycle.  

For distributions, payment dates must be adjusted to ensure timely settlement and disbursement of funds. Mandatory reorganisations, such as mergers and acquisitions, will require changes to processing timelines to accommodate the shorter settlement cycle. Similarly, voluntary reorganisations, which involve shareholder elections, must synchronise election deadlines and execution dates with T+1.  

Streamlining processes through automation and standardisation

Automation also plays a crucial role in the transition to T+1, offering a means to streamline workflows and reduce manual intervention. Two areas of focus are buyer protection instructions and market claims. Automating workflows for buyer protection instructions will facilitate the submission and processing of these instructions, ensuring that they are handled accurately and on time.   Market claims, which arise from discrepancies in corporate actions, will also benefit from automation, reducing the need for manual processing and enhancing overall efficiency.   

To support these automated processes, the adoption of ISO 20022 messaging is essential. This standardised messaging format enables seamless communication and processing, ensuring that all parties involved in corporate events are on the same page and can execute transactions smoothly.  

Meeting European corporate event standards

Compliance with European corporate event standards is another critical aspect of the transition to T+1. Stakeholders must identify and resolve compliance gaps to meet the new standards and ensure readiness for the T+1 settlement cycle. This involves engaging with market participants, including issuers, custodians and investors, to collaborate on the necessary changes and ensure adherence to the new requirements.  

Learning from the US experience

As Europe prepares for its transition to T+1, valuable lessons can be learned from the US market, which has already shifted to T+1, making the switch on 28 May 2024. The US approach provides insights into the challenges and opportunities associated with the transition, offering a roadmap for European markets to follow.  

The transition to T+1 settlement is more than just a regulatory requirement; it is an opportunity to transform corporate events processing for the better. By aligning key dates, automating processes, and ensuring compliance, the industry can enhance efficiency, reduce risks, and improve liquidity. To ensure a smooth and successful transition, Euronext Securities will continue to collaborate and engage with stakeholders to ensure that market participants’ needs are met, paving the way for a more efficient, competitive, and resilient European financial ecosystem.  

Euronext Securities is actively participating in technical working groups and contributing to the Industry Steering Committee as part of the new governance structure for the T+1 settlement cycle in the European Union. 

This initiative has been established by the European Post Trade Forum (EPTF) and is supported by regulators, market infrastructures, and industry associations such as ECSDA:

• Alessio Mottola – Co-lead of the Corporate Actions Working Group
• Thomas Metier – Co-lead of the Settlement Efficiency Working Group
• Chiara Rossetti – Co-lead of the Trading Working Group

Author: Alessio Mottola 
CEO, Euronext Securities Milan and co-leader of the T+1 settlement cycle Corporate Events workstream in the European Union

For more information on ESMA and the T+1 Governance Structure please see: https://www.esma.europa.eu/esmas-activities/markets-and-infrastructure/…

In October 2024, Euronext acquired Acupay and its sister company, BondCom, integrating them into the Euronext Securities family. The companies’ expertise in identifying investors for tax relief, tax compliance and liability management aligns with Euronext Securities' ambition to become the preferred CSD for European capital markets.

A legacy of innovation

Acupay and BondCom both trace their origins to a firm founded in New York in 1986. Acupay specialises in technology-driven solutions for global tax relief at source, tax reclaim services, and tax compliance on cross-border bonds. BondCom is a global leader in bondholder initiatives, including consent solicitations, tender and exchange offers, and complex restructurings.

BondCom was established in the mid-1990s to enhance bondholder communication, a crucial aspect of liability management. Over the past two decades, it has helped issuers in 51 countries engage with bondholders across over 21,000 ISINs, representing US $1.8 trillion in bonds. 

Acupay emerged in 2005 to address Spain’s new tax compliance requirements, rapidly expanding into a leading global tax compliance and reclaim agent. To date, it has processed over US $346 billion in cross-border securities, serving 720 custodian banks and 1.1 million investors across 180 countries. 

The combined expertise of Acupay and BondCom played a pivotal role in Greece’s historic US $270 billion sovereign debt restructuring in 2012. 

Proximity to CSDs

In 2010, Acupay partnered with the Italian CSD, the predecessor of Euronext Securities Milan, to develop an innovative bond structure, enabling Italian issuers to access cross-border capital markets more efficiently. 

The collaboration continued in 2016, when Acupay developed the TPS solution for the Italian CSD streamlining tax processing through real-time transaction management, tax computation, and documentation handling. This innovation helped Euronext Securities expand its services and attract non-resident intermediaries.

Advancing tax services at Euronext Securities

A key objective in Euronext’s Innovate for Growth 2027 strategy is to position Euronext Securities as the CSD of choice for European capital markets.  Supporting investors, custodians, and issuers with harmonized tax services is fundamental to achieving this ambition.  Acupay, with BondCom, will play a key role, bringing advanced technology, robust operational capabilities, and deep market expertise.

Expanding tax services for investors, custodians, and issuers

Euronext Securities already offers a broad range of tax solutions, including:

• Annual and monthly tax reporting
• FATCA and CRS reporting
• Financial transaction tax
• Tax intelligence and advisory services

Meanwhile, Acupay specialises in technology providing broad solutions related to:

• global tax relief at source
• international tax reclaim services
• tax compliance on cross-border bonds

Together, these services enable seamless market access for issuers while simplifying tax processes for custodians and investors.

The five pillars of Euronext Securities’ tax strategy

Euronext Securities’ new tax strategy has been developed collaboratively by the CSDs and Acupay teams. It is built on five key pillars that will drive the expansion and enhancement of tax services:

1. CSD convergence – modernising legacy systems and unifying the tax product portfolio across markets via common platforms
2. European Expansion – developing the necessary tax services to support issuance and trading from other Euronext markets, Belgium, France, and the Netherlands
3. Global market access – replicating the success of Italy’s Yankee bond and ADR programmes by creating new cross-border tax solutions for issuers
4. Legislative & market alignment – adapting to regulatory changes, such as the EU’s FASTER Directive, to improve withholding tax procedures while ensuring compliance and service enhancement
5. Tax relief for investors – integrating the first four pillars to streamline cross-border tax relief and recovery, ensuring investors who use Euronext Securities for the custody of their equities, bonds, and ETFs receive their full entitlements efficiently

These five pillars reinforce Euronext Securities’ commitment to harmonising tax services across Europe. The goal is to continue streamlining back-office tax processes, removing barriers that investors encounter when accessing European capital markets.

By combining the expertise and innovative technology of Acupay and BondCom with its existing established products, Euronext Securities will be able to redefine tax services in European capital markets to remove barriers, enhance investor confidence, and drive sustainable growth for issuers, custodians and investors.

Authors:
Inessa Collier, Business Development Lead
Stef Lambersy, CEO, Acupay and BondCom
Kristine Bastøe, CEO, Euronext Securities Oslo and Head of ES Services, Products

Join us for an exclusive interview with DNB's Head of Issuer & Investor Services Nicolai Christensen, who shares his journey and expertise in the Norwegian securities market. With extensive experience in the industry, he offers a unique perspective on the challenges and opportunities, including harmonisation, cybersecurity, and the potential of digital assets. Discover how his team is shaping the future of post-trade services and learn about the unexpected lessons he's uncovered in the financial world.

Tell us a bit about yourself and your role at DNB

My name is Nicolai Christensen and I am the Head of Issuer & Investor Services at DNB. I have been with DNB since 1998, except for a three-year period when I worked at Verdipapirsentralen (now known as Euronext Securities Oslo). This experience has given me a deep understanding of the industry and a strong familiarity with Euronext Securities Oslo and many of its employees.

In my current role, I lead a team that acts as the bridge between issuers and Euronext Securities Oslo in our capacity as Issuer/Paying Agent/Issuer Account Operator, as well as a bridge between investors and Euronext Securities Oslo in our capacity as Investor Account Operator. We assist issuers in registering with the CSD, handle dividend distributions, organise and facilitate digital and traditional general meetings, manage employee share savings plans, provide technical support for all types of corporate events and act as a speaking partner for issuers and their legal advisors.

Our team delivers a wide range of services to participants in the Norwegian securities market, and DNB holds a significant market share in this area. We are working closely with various parts of DNB to distribute the service from Euronext Securities Oslo to the Norwegian market.

We also provide subject matter expertise to Euronext on major projects and initiatives such as Convergence, the Common Corporate Action Platform, amongst other initiatives. My team consists of approximately 30 highly skilled individuals with extensive knowledge of the infrastructure of the Norwegian securities market.

On a personal note, I own and live on a farm outside Oslo. I enjoy skiing, hunting, working out and traveling. I’m married and we have a son who has been an active ski jumper for many years.

What do you see as the biggest opportunity and challenge that needs to be addressed in the post-trade industry?

The post-trade industry is at a pivotal juncture, presenting both significant opportunities and challenges.

One critical area is harmonisation. It is important to note that harmonisation does not equate to consolidation. The primary focus for CSDs in the Nordics should be aligning with EU standards rather than exploring mergers and acquisitions. 

T2S and T+1 will be here shortly. It’s crucial that the Norwegian infrastructure can support this transition to remain a relevant registry/listing venue.

Enhancing CSD's integration with tax authorities to obtain relief-at-source and efficient, integrated tax reporting is another significant opportunity. The implementation of the FASTER Directive will be a key step in this direction.

Cybersecurity and resilience are paramount. Ensuring the safety and security of assets against cyber threats is a top priority.

While the Nordics have not yet seen a significant push towards digital assets, this represents an opportunity. 

Additionally, continuous simplification and streamlining of processes and procedures are vital for cost-effective operations. This includes leveraging system solutions and artificial intelligence (AI) to enhance efficiency. Furthermore, it is essential to remain responsive and agile in seizing business opportunities and developing new services and products.

What’s the most unexpected lesson you’ve learned or myth you’ve debunked by working in the financial industry?

When I first entered the financial industry, I believed that the infrastructure of the securities market was straightforward. However, the longer I have worked in this field, the more I have come to realise the immense complexity involved.

The infrastructure is a sophisticated network that requires seamless coordination and integration. It involves numerous processes and systems that must work together efficiently to ensure the smooth functioning of securities markets. This complexity is further compounded by the differences between various securities markets, each with its own unique set of rules and practices.

As I have gained more experience, I have come to appreciate the intricate nature of this infrastructure, and the continuous efforts required to maintain and improve it. This realisation has made me particularly excited about the initiatives Euronext is currently working on to standardise and harmonise processes across different securities markets whilst securing the integrity of the local markets.