Euronext Securities Copenhagen today announced that BNY has signed an agreement to become a direct participant in the Danish Market.

Henrik Ohlsen, Head of Sales at Euronext Securities, commented:

 “We are pleased to partner with BNY, a leading global financial services company, to provide them with direct access to the Danish market.  BNY joins a growing number of Euronext Securities customers choosing to access our markets directly and capitalise on the benefits of that approach, such as lowering operational risk and accessing the market infrastructure directly.   We believe this trend of market optimisation, with market infrastructures linking together, not only benefits our international clients, but also helps connect European economies to global capital markets. Concretely, international investors now have more direct and efficient access to the €1.5 trillion of assets issued in the Danish capital market.”

Strengthening ties to the Danish and Nordic markets

For BNY, having a direct interface to the Danish market through local CSD connectivity will help the financial institution further support its customers in Denmark and the Nordic region, as well as internationally. 

Søren Eberhard, Copenhagen Branch Manager at BNY commented: 

“Following the establishment of our branch office in Copenhagen (2020) and Depositary Bank (2021), we are excited to take yet another step in our international growth strategy and expand our commitment to the Danish and Nordic markets. BNY provides clients with local expertise powered by global capabilities including technological resources, resiliency, and scale needed to meet the increasing regulatory requirements of institutional investors and their growing investments needs.”

The financial industry relies heavily on the speed and reliability of data transmission to execute trades and manage orders. In the fast-paced environment of stock exchanges, where milliseconds can translate to significant financial gains or losses, the method by which order data is transmitted is crucial. Wireless microwave networks have emerged as a critical technology for order transmission, offering numerous advantages over traditional methods.

How stock exchanges use wireless microwave networks 

Wireless microwave networks transmit data using high-frequency radio waves, providing a direct line of communication between stock exchanges and trading firms. This method bypasses the latency issues associated with fibre optic cables, which often take longer, more circuitous routes. 

In practice, microwave networks are used to create more direct connections between trading venues and firms’ data centres, significantly reducing the physical distance that data needs to travel. These networks are engineered to ensure the shortest possible path, often spanning hundreds of miles with minimal signal degradation.

Euronext Wireless Network EWiN

Euronext recently launched its own wireless network (EWiN) that uses microwave technology. This service is set to significantly enhance the speed of order transmission between London and the exchange’s data centre in Bergamo, offering unparallelled improvements in latency for Euronext’s London-based members that will choose EWiN.

By leveraging the faster transmission speeds of microwave technology, EWiN provides a direct and highly efficient communication pathway that significantly reduces the time it takes to send orders to Euronext’s single liquidity pool, powered by the single technology platform Optiq^®.

Euronext is the first exchange in Europe to offer a Plug & Play solution for trading via microwave technology, which has roughly half the latency of the fastest fibre routes available (less than 4ms one way, compared to 6-8ms one way through fibre).

Banks and brokers will benefit from reduced latency and greater market efficiency, enhancing execution quality for investors. Euronext members can request tailor-made bandwidth based on the order entry capacity they want to allocate to this service.

This new service is provided in collaboration with McKay Brothers, the largest independent microwave network provider in Europe.

The future of data transmission

The transmission of stock exchange order data via wireless microwave networks offers significant advantages in terms of speed, reliability, and cost-effectiveness. In the competitive world of high-frequency trading, the ultra-low latency provided by these networks can be the difference between profit and loss. 

With the continuous advancements in microwave technology, these networks are set to play an increasingly vital role in the financial sector, ensuring fast, secure, and efficient data transmission. 

As trading continues to evolve and the demand for speed intensifies, wireless microwave networks will remain a cornerstone of modern trading infrastructure, enabling market participants to stay ahead in the race for speed and efficiency.

Learn more about Euronext Wireless Network (EWiN)

Julien Tessier steps into the role of CEO at Euronext Corporate Services, signifying a major milestone amid rapid growth.

Euronext Corporate Services has announced the appointment of Julien Tessier as its new CEO. This marks a significant milestone for Euronext Corporate Services.

Euronext Corporate Services is a dynamic and integral subsidiary of Euronext, offering a suite of digital solutions in governance, compliance, communication and investor relations. Initially developed to provide services for companies listed on the Euronext stock markets, Euronext Corporate Services is now dedicated to empowering both private companies and public entities, leveraging the expertise acquired through working in the highly regulated environment of listed companies. Its unique suite of software and expert teams help organisations navigate the business landscape, offering practical solutions and strategic insight. 

Euronext Corporate Services has seen rapid and impressive growth since it was first founded in 2016. It currently serves more than 4,500 clients including over 1,000 listed companies, private companies, advisors and public organisations. Clients are located within all Euronext markets and all across Europe, with its solutions used in over 25 countries. Euronext Corporate Services delivered €45.4 million of revenue in 2023 and saw growth of over +30.72% CAGR between 2017 and 2023, making it one of the key growth engines in the Euronext group. Its strong local footprint with over 170 employees means it is ideally placed to support companies wherever they are in Europe.

Julien Tessier states that he has been consistently impressed by the dedication of the Euronext team members across all locations, highlighting his plans to leverage the strength and quality of the teams. Ultimately, Euronext Corporate Services’ vision is to shape tomorrow's corporate solutions software, and to revolutionise every aspect of corporate decision-making. 

Our focus remains on driving innovation and setting the standard in corporate software solutions, all while maximising value for the 4,000+ organisations we proudly serve.

Euronext Corporate Services’ next big step

With its ambitious growth plans and Europe-wide teams, Euronext Corporate Services requires a competent and innovative leader, with the necessary expertise and experience to lead a fast-paced and expanding company. With 17 years of leadership experience across Europe, United States and Asia, Julien Tessier is highly skilled in enterprise sales strategy, scale-up operations, international business development and M&A integration. Mathieu Caron, Head of Primary Markets at Euronext, believes that Julien is positioned to drive the company’s growth ambitions, adding that his leadership will elevate its software offerings in the Investor Relations, Compliance and Governance fields.

Julien’s vision and expertise will empower our clients to achieve unparallelled efficiency, accountability, and success in competitive capital markets.

With the appointment of Julien Tessier as CEO, Euronext Corporate Services is ready to continue its trajectory of rapid growth and innovation.

Key strategic elements  

Julien believes there are four key factors needed to successfully scale and further grow Euronext Corporate Services:

With the strong foundation Euronext Corporate Services has built, I am confident that together, we can make a meaningful difference for the benefit of our clients and teams.

Dedication to clients

Two months into his tenure at Euronext Corporate Services, Julien has been impressed by its continued growth. He highlights Euronext Corporate Services’ dedication to clients, pointing out the benefit of being part of the wider Euronext ecosystem, which gives the company unique access to clients and opportunities to showcase its suite of software and services. 

Our Corporate Solutions – focused on governance, compliance, investor relations, and communication – resonate deeply with the needs of issuers and corporations as they navigate their capital markets path.

Customer-focused solutions

Julien outlines the range of solutions that ensure the needs of clients, listed companies, and organisations are met effectively. These solutions all begin with actively listening to customer feedback, which informs the product roadmap. 

Whether it’s our governance platform for effective board management, our compliance portal ensuring regulatory compliance, or our investor relations solutions for shareholder engagement and financial communication, this continuous improvement approach ensures alignment with our clients’ evolving requirements.

Julien also points out the benefit of comprehensive bundle solutions for corporations preparing to enter the capital markets. He explains that these bundle solutions empower corporations to be compliant with market regulations and successful with investor relations from day one of their capital market journey.

ESG solutions

ESG considerations have evolved into a crucial valuation factor for all corporations, especially those listed on the market. Julien acknowledges Euronext’s unique position between corporations and investors. 

Euronext Corporate Services provides advisory solutions and tools that empower companies to enhance access to capital, identify sustainability expectations, engage effectively with investors.

This in turn allows companies to establish a truly differentiating ESG pillar that strengthens their value proposition.

Euronext Corporate Services solutions: the backbone of the organisation

Euronext Corporate Services solutions are designed to help companies navigate the world of capital markets, EU regulations and relations with stakeholders. These include a set of solutions developed to help with investor relations and communication, which cover CRM and targeting for investor relations, webcast solutions, post-listing advisory and market intelligence, and a board portal solution that helps companies engage effectively with their investors. 

Compliance solutions include an insider list management solution that facilitates companies’ compliance with the EU Market Abuse Regulation, an employee trading monitoring solution, and a secure whistleblowing software solution that companies can set up for their employees to comply with the EU Whistleblowing Directive.

Euronext Corporate Services also offers a training academy providing certifications and bespoke training. 

Mathieu Caron is proud of the transformative impact of our Corporate Solutions on Euronext clients.

The solutions integrate effortlessly into existing workflows, boosting efficiency, accountability, and strategic decision-making, empowering our listed companies to succeed in their capital markets journey.

Case studies: how Euronext Corporate Services solutions have transformed a company’s strategic processes

As issuers and private companies continue to navigate the complexities of the financial landscape in Europe and beyond, they can turn to the suite of services and solutions offered by Euronext Corporate Services to tackle capital markets, ensure compliance and enhance their communication and governance. 

Visit the Euronext Corporate Services website to learn more about our solutions and how they can streamline and secure your business operations. 

In June 2024, Euronext Dublin had the pleasure of welcoming leading financial services provider Cantor Fitzgerald Ireland and clients to the stock exchange’s historic Market Floor, one of the first events to take advantage of a new event space in Dublin.

The Market Floor Dublin

The imposing high-ceilinged room in Anglesea Street, the Market Floor, was known simply as ‘the Room’ by traders who carried out their daily trading there for well over a century . Built in the Italianate style, the Market Floor features ornate pillars and wood panelling, and is lit by chandeliers from Waterford Crystal, the world-renowned Irish crystal manufacturer.Prices were chalked up a large chalkboard, and traders gathered at wooden desks arranged in a wide oval.

With the advent of electronic trading in June 2000, open outcry trading came to an abrupt end and the traders swapped the activity of floor trading for screens and electronic pricing. 

Now that the Market Floor no longer sees the hustle and bustle of traders, it has been converted to become a very special meeting and events space, and has been brought right up to date with the latest event technology and furnishing matching your event needs , while retaining its impressive history. 

Cantor Fitzgerald Ireland client event

Cantor Fitzgerald Ireland’s event began with a cocktail reception in the exchange’s modern Atrium, followed by a panel discussion and networking in the impressive Market Floor room. 

“We would like to thank Euronext Dublin’s CEO, Daryl Byrne, for providing us with exclusive access to such a prestigious Dublin landmark and sharing its unique history, and of course, to our clients for making it such an enjoyable evening.”
Cantor Fitzgerald Ireland

The event was just one example of the type of event that Euronext Dublin can help organise. Many other options and configurations are available: you could consider holding a Bell Ringing Ceremony, corporate lunch, AGM, cocktail reception or other celebration event on the Market Floor. 

For more information, visit our website: Renting the Market Floor | Euronext Dublin

What is the difference between daily and monthly options? Learn about the unique features, benefits, and considerations of both daily and monthly options, allowing you to make informed decisions aligned with your trading objectives.

Foundations of index options

Before we investigate the differences, an understanding of index options is crucial. Index options are derivatives based on the value of underlying indices like the CAC 40, the FTSE 100 or the S&P 500. These financial instruments give the holder the right, but not the obligation, to buy (in the case of call options) or sell (in the case of put options) the index at a predetermined price, known as the strike price, before the option expires. The main appeal of index options derives from the ability to offer clients exposure to the broader market or specific sectors, enabling strategies ranging from hedging and income generation to speculative bets on market directions.

Daily index options: a snapshot

Daily index options are a relatively recent innovation designed to cater to the needs of traders seeking to capitalise on short-term market movements. These options have an expiration period of just one trading day, meaning they expire at the end of the trading session on their expiry date. This characteristic gives daily index options a high degree of flexibility and responsiveness to market volatility, making them an ideal tool for traders aiming to exploit daily market fluctuations.

Key characteristics of daily index options:

• Short lifespan
  Their one-day lifespan demands a proactive trading approach, with strategies often executed and unwound within the same trading day.
• High sensitivity to market movements
  Daily options are particularly sensitive to immediate market news, economic reports, and geopolitical events.
• Rapid time decay
  The value of daily options erodes quickly, a factor that traders must diligently manage.

Monthly index options: an overview

Monthly index options, the traditional format of index options, have a longer time frame, typically expiring on the third Friday of the expiry month. This duration gives traders and investors the flexibility to engage in medium- to long-term strategies, including hedging positions over an earnings season, capitalising on anticipated macroeconomic trends, or generating income through premium collection strategies like covered calls or cash-secured puts.

Key characteristics of monthly index options:

• Longer duration
  They allow a broader window for the realisation of market predictions or hedging strategies.
• Lower time decay rate
  While all options experience time decay, monthly options do so at a slower rate compared to their daily counterparts, offering more leeway in timing decisions.
• Versatility in strategies
  The longer timeframe allows for a wider range of strategies, from simple directional investments to complex spreads and combinations.

Comparative analysis: daily vs. monthly index options

Time horizon and decay 

The main difference between daily and monthly index options lies in their respective time horizons. Time decay, or theta, is a critical factor in options trading, representing the erosion of an option's extrinsic value as expiry approaches. Daily options are characterised by an accelerated time decay, which can significantly impact profitability if the market does not move as anticipated. Daily options cater to traders with a short-term focus, who want to navigate the market's day-to-day volatility. Monthly options, benefiting from a longer life, decay far more gradually, giving traders more flexibility to manage or adjust their positions. Therefore, they are better suited to strategies with a longer view, requiring less frequent monitoring and adjustment.

Risk and reward dynamics

Daily index options offer the potential for rapid gains, reflecting their high sensitivity to short-term market movements. However, this comes with a heightened risk profile, including the possibility of totally losing your premium in a single day. Monthly options, while still risky, provide a more moderated risk-reward balance, with time to recover from adverse market movements or to adjust strategies as conditions evolve.

Impact of time decay

Time decay, or theta, is a critical factor in options trading, representing the erosion of an option's extrinsic value as expiry approaches. Daily options are characterised by an accelerated time decay, which can significantly impact profitability if the market does not move as anticipated. Monthly options, benefiting from a longer life, decay far more gradually, giving traders more flexibility to manage or adjust their positions.

Liquidity and market depth

Liquidity, or the ease with which an asset can be bought or sold in the market without affecting its price, varies between daily and monthly options. Generally, monthly index options have greater liquidity due to their established presence and broader utilisation by a diverse selection of market participants. Daily options, though growing in popularity, may sometimes face liquidity challenges, particularly for less widely followed indices or out-of-the-money strikes. To counter and reduce this risk, so-called market makers provide tradable prices to the market. Market makers are active in both daily and monthly options.

Strategic flexibility and complexity

The strategic applications of daily and monthly index options differ significantly. Daily options are often used for straightforward directional plays or very short-term hedges. In contrast, the extended timeframe of monthly options accommodates a wider variety of strategies, including those that benefit from the passage of time, such as iron condors, butterflies, and calendar spreads.

The choice between daily and monthly index options is not just a matter of preference but a strategic decision aligned with the trader’s trading style, risk tolerance, and market outlook. Traders and investors must weigh these factors carefully, considering not only their personal trading philosophy but also the current market environment and their specific financial goals. As with all trading endeavours, a deep understanding of the instruments at hand, combined with disciplined risk management, is paramount to achieving long-term success in the world of index options trading.

More about daily index options:

How to find quotes for daily index options

What are daily index options?

As the 2024 AGM season concludes, a look back shows a period marked by adaptability, resilience, and innovation. Across Denmark, Norway, and Italy, Euronext Securities coordinated and supported over 550 AGMs, expanding beyond traditional in-person gatherings into virtual and hybrid formats. This AGM season has tested and highlighted new directions for shareholder engagement and corporate governance amidst changing global dynamics and shareholder expectations. Reflecting on the season, our experts identify key trends shaping the future of AGMs, focusing on the integration of technology, transparency, and stakeholder participation. The adoption of virtual platforms and the blend of physical and digital elements in hybrid meetings have broadened the scope of accessibility and inclusivity.

The season in figures:

• AGMs held: 550+ (2023: 425+)
• Highest online attendance at a hybrid AGM: 700+ (2023: 580+)
• Highest attendance at a physical AGM: 4,900+ (2023: 1,600+)

In Denmark, we facilitated over 229 annual general meetings, ranging from virtual to hybrid and large physical events. The physical general meeting in Denmark remains a highly valued occasion. Numerous companies continue to utilise the AGM as a marketing and branding platform. In Denmark, it serves as a means of nurturing a robust local investor culture, allowing smaller investors to demonstrate their dedication and involvement with the companies they have invested in.

In Italy, the team supported 190 general meetings. The preferred option remains having a designated representative act on behalf of all investors. However, we are also witnessing the return of physical meetings after a period during which nearly all meetings were held virtually due to Covid.

In Norway, 115 companies use the Euronext Securities system. Euronext Securities Oslo supported 14 AGMs directly, with the rest supported via our account operators.

Across Denmark, Italy, and Norway, we facilitated over 550 annual general meetings in 2024, demonstrating our commitment to supporting diverse formats from virtual to hybrid and large physical events. In Denmark, AGMs continue to be a cornerstone for fostering local investor engagement. Italy has seen a resurgence of physical meetings, highlighting a return to tradition after the pandemic. Meanwhile, in Norway, our collaboration with account operators has enabled seamless support for numerous companies. These efforts reflect our dedication to enhancing shareholder participation and corporate governance.

Nicholas A. Schulz, Head of Issuer & Tax Services, Euronext Securities

Navigating corporate communication and shareholder empowerment

As the AGM season of 2024 concludes, the lessons learned and trends observed provide a compass for navigating the evolving landscape of corporate discourse and shareholder empowerment.

Proactive ESG focus in Danish AGMs

During the current Danish AGM season, many companies are prioritising Environmental, Social, and Governance (ESG) issues on their agendas. This trend highlights a commitment to sustainability and responsible governance, driven by increasing investor demand for transparency and accountability. Stakeholders, including customers and employees, are also pushing for stronger ESG practices. By addressing ESG proactively, companies are managing risks, anticipating future regulations, and gaining a competitive edge.

Adding to this proactive focus, the Danish Parliament passed Bill L 107 on 2 May 2024, implementing the Corporate Sustainability Reporting Directive (CSRD) into Danish law. The law, effective from 1 June 2024, will be phased in gradually based on company size. The largest companies must integrate a sustainability report into their annual reports for fiscal years starting on or after 1 January 2024. Specifically, large companies, including publicly listed companies and state-owned enterprises with more than 500 full-time employees, will be required to submit their first sustainability report in 2025.

This new legislation mandates that Danish companies produce a sustainability report as an integral part of their annual report, specifically as a separate section in the management commentary. By aligning with these regulations early, Danish companies demonstrate their commitment to transparency and sustainable business practices, setting a benchmark for responsible corporate behaviour and positioning themselves as leaders in ESG performance.

Focus on SRD II regulation and GM notifications in Norway

In Norway, the recent AGM season has been significantly influenced by the implementation of the Shareholder Rights Directive II (SRD II) regulation and the associated General Meeting (GM) notifications. SRD II aims to enhance long-term shareholder engagement and improve transparency between companies and their investors. This regulation mandates greater disclosure of information, particularly concerning remuneration policies and related party transactions. Furthermore, regulatory changes have been made regarding how Norwegian companies are required to provide notifications ahead of their GMs, ensuring that shareholders are well-informed and able to exercise their rights effectively. This shift not only strengthens corporate governance but also promotes a more transparent and accountable business environment in Norway.

Looking at the figures from January to May we see that the number of SRD II registrations in Norway is 195 out of 280 general meetings, which equals a 70% usage rate. While the use of the SRDII infrastructure currently is lower than anticipated and hoped for, we are confident that more issuers will soon recognise the significant benefits of including the new SRD II infrastructure into their general meeting processes, and we expect this number to grow in the future.

In Norway, issuers have the option to use our GM Notice service to ensure SRD II compliance. Euronext Securities strongly encourages all relevant issuers to adopt the new SRDII infrastructure into their general meeting process. Euronext Securities Oslo can provide comprehensive support to issuers throughout this process. Our experienced teams will help you stay compliant and take full advantage of the new regulatory framework.

Focus on regulatory changes in the Italian market

In the Italian market, recent regulatory changes have garnered significant attention. On the general meeting front, Italy has introduced the possibility of conducting virtual general meetings through a single Shareholders' Representative. This modern approach aims to enhance accessibility and streamline the decision-making process. Concurrently, Italy is aligning its Increased Voting Rights (IVR) option with other jurisdictions, such as the Netherlands, allowing voting rights to be empowered up to 10x from a previous maximum of 2x. This adjustment is designed to strengthen shareholder influence and engagement. Many Italian companies are actively considering these new options and planning to adopt these changes before next year through dedicated extraordinary meetings that we expect to happen in autumn/winter 2024. These regulatory updates are poised to improve corporate governance and shareholder participation across Italy.

The ESG-friendly AGM

For the 2025 AGM season, issuers will have access to a new innovative Shareholder Register and Annual General Meeting (AGM) platform from Euronext Securities. This marks a significant leap towards modernising our services for issuers.

This project is set to redefine the way issuers and shareholders interact, with a special focus on streamlining General Meeting and Shareholder Register processes across Denmark, Norway and Italy.

The Shareholder Register and AGM platform is designed with sustainability and responsibility in mind. Euronext Securities recognises the growing importance of Environmental, Social, and Governance (ESG) considerations in corporate governance. The platform empowers issuers and shareholders to engage in AGMs with a focus on ESG principles, fostering dialogue and decision-making that aligns with sustainable business practices.

For more information about the new Shareholder Register and AGM platform, please visit the Euronext Securities website. We also invite you to download our recent eBook: “An ESG-Friendly AGM”.

Visit your local CSD to find out how we can support your AGM:

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