Frequently Asked Questions - Cash markets

Euronext Cash Markets

Frequently asked questions about our cash markets

What is Euronext?

Euronext is the first pan-European exchange, spanning Belgium, France, the Netherlands, Portugal and the UK. Euronext provides access to our markets through five different listing venues. Euronext also have representatives in Germany, Switzerland, Spain and Italy. From young, growth-oriented companies to long-established enterprises, Euronext offers various types of markets with multiple entry points to provide our issuers with a tailor made listing offer. Euronext’s regulated market is mainly dedicated to large cap and mid-cap companies. Euronext Growth provides fewer obligations and is intended primarily to small and mid-cap growth companies. Euronext Access is an MTF offering companies at an early stage an easy access to capital markets and a framework adapted to their specific needs. Euronext is the largest cash market in Europe by number of transactions registered in the central order book. The EURO STOXX 50 stock index comprises 26 Euronext listed issuers.

Euronext organises, operates and offers access to the stock market. The competent regulator in each country supervises markets that Euronext operates in those countries.

The group is a world leader that provides:

  • Admission to listing and trading of corporate securities
  • Trading of equity and fixed income products
  • Trading of derivatives
  • Publication of market data
  • Index management
What are Euronext’s cash markets?

Euronext includes a number of cash markets in Europe:

  • Euronext, a Regulated Market, with market locations in Amsterdam, Brussels, Lisbon, London and Paris;
  • Euronext Growth, a Multilateral Trading Facility, with market locations in Brussels, Lisbon and Paris;
  • Euronext Access, a Multilateral Trading Facility, with market locations in Brussels, Lisbon and Paris;
  • BondMatch, a non-regulated Multilateral Trading Facility specifically for bonds, with a market location in Paris.
Which type of market is Euronext?

Euronext is the first integrated cross-border regulated exchange, combining the stock exchanges of Amsterdam, Brussels, Lisbon and Paris into a single market and now with a London market as well. Issuers who meet European Union (“EU”) regulatory standards are qualified for listing on the regulated markets operated by Euronext. Euronext’s regulated exchanges list a wide variety of securities, including domestic and international equity securities, convertible bonds, warrants, trackers and debt securities, including corporate and government bonds.

Euronext’s markets are regulated markets within the meaning of the Markets in Financial Instruments Directive (MiFID) (Article 4(1) (14) of MiFID). As such, they are governed by a common set of rules applicable to all the Euronext Securities Markets – the so-called Harmonised Rules (Rule Book I) – and each is also governed by a set of local rules applicable to that particular market – the so-called Non-Harmonised Rules (Rule Book II).

Euronext’s markets are regulated markets within the meaning of the Markets in Financial Instruments Directive (MiFID) (Article 4(1) (14) of MiFID). As such, they are governed by a common set of rules applicable to all the Euronext Securities Markets – the so-called Harmonised Rules (Rule Book I) – and each is also governed by a set of local rules applicable to that particular market – the so-called Non-Harmonised Rules (Rule Book II). The free float must be at least 25% of subscribed capital represented by the class of securities concerned or such lower percentage determined – in its absolute discretion – by the Euronext in view of the large number of the securities concerned and the extent of their distribution to the public. This percentage shall not be lower than 5 % of the subscribed capital represented by the class of securities concerned and must represent a value of at least €5 million calculated on the basis of the subscription price.

Blue chips indices managed by Euronext are the AEX® in Amsterdam, the BEL 20® in Brussels, the CAC 40® in Paris and the PSI 20® in Lisbon. Euronext manages several indices for large to small capitalisations on Euronext. For more information, please refer to Euronext indices section in the present document.

Which type of market is Euronext Growth?

Euronext Growth is a- Multilateral Trading Facility that offers market access with fewer obligations and is intended primarily to make small and mid-cap growth companies available to a wide range of investors. Euronext Growth is not a regulated market within the meaning of EU directives, but rather a multilateral trading facility (MTF) operated under the Euronext Growth name by the relevant market operator in Brussels, Lisbon and Paris. Euronext Growth offers a lighter regulatory regime compared to Euronext’s regulated markets.

Euronext Growth traded companies benefit from a market with less stringent listing requirements and innovative operating rules that guarantee protection and transparency for investors. Listed companies have greater flexibility in their choice of accounting standards and are subject to less extensive post-listing reporting requirements than companies listed on Euronext. Companies that wish to be admitted to Euronext Growth must choose a listing sponsor to assist them during the admissions procedure and guide them throughout their time of being admitted to Euronext Growth.

The Euronext Growth market is based on the same pan-European trading platform as the Euronext main cash market, enhancing liquidity. The Euronext Growth® All-Share Index improves investors’ ability to benchmark Euronext Growth -listed companies, which also helps promote trading.

Which type of market is Euronext London?

Complementary to the regulated markets operated by Euronext in Paris, Amsterdam, Brussels and Lisbon, Euronext London is a regulated market aimed at attracting issuers to list in the UK regulatory environment, with a focus on international issuers. Launched in 2010, Euronext London offers international issuers the opportunity to list shares and depositary receipts on the Official List of the Financial Conduct Authority. In addition, these listed companies benefit from having their securities trade in London on Euronext’s Universal Trading Platform (UTP) that connects all our European securities markets, creating Europe’s largest cross-border equity market and providing enhanced liquidity to issuers and investors.

Which type of market is Euronext Access?

Euronext Access provides companies with easy access to a listing and a framework adapted to their specific needs. This multilateral trading facility provides a channel for disseminating buy and sell orders, with trades executed by a Euronext Market Member. The criteria for admission to the markets are less stringent. Market abuse and transparency provisions do however apply in accordance with applicable laws. Euronext Access mainly serves early stage growth companies.

What is Euronext Access+?

Launched in June 2017, Euronext Access+ is a compartment of Euronext Access. Designed for both start-ups and SMEs, Euronext Access+ helps them make a smooth transition and acclimatisation to other Euronext markets, notably in terms of investor communications and transparency. This new compartment, which is part of Euronext Access, is a springboard to other Euronext markets. Companies admitted to trading on Euronext Access+ are given additional assistance and their shares will benefit from greater visibility.

Companies can apply for listing on this new compartment as long as they comply with the following criteria:

  • financial statements covering at least two years, including audited accounts for the previous year, €1 million minimum free-float,
  • obligation to have a Listing Sponsor, starting with listing and continuing throughout the market experience, and, commitment to regularly communicate towards the market.
How many companies are listed on Euronext, Euronext Growth and Euronext Access?

As of 30 June 2017, Euronext, Euronext Growth and Euronext Access had the following breakdown of listings.

MARKET/ LOCATION

 

AMSTERDAM

 

BRUSSELS

 

PARIS

 

LISBON

 

TOTAL

Euronext

123

127

521

47

818

Compartment A

60

39

164

11

274

Compartment B

25

43

152

13

233

Compartment C

38

45

205

23

311

Euronext Growth

-

8

187

3

198

Euronext Access+

-

-

-

-

-

Euronext Access

-

13

218

10

241

Where can I find a list of listed company?

The list of companies listed on our markets is available on our website in the equities-directory section. https://www.euronext.com/en/equities/directory

What are the “capitalisation compartments”?

Through capitalisation compartments, all the securities listed on the Euronext regulated markets can be viewed by market capitalisation or by size.

There are three compartments: A, B and C.

  • Capitalisations of more than €1 billion belong to compartment A;
  • Capitalisations between €150 million and €1 billion belong to compartment B;
  • Capitalisations of less than €150 million belong to compartment C.

Euronext Growth has no market capitalisation limit but aims to attract growth companies.

How are issuers allocated to the capitalisation compartments?

The breakdown of companies between the various compartments is reviewed on 31 December of each year and any changes are published by Euronext via a Corporate Event Notice.

For the purpose of this inquiry, market capitalisation is calculated by taking into account:

  • Shares of the first trading line;
  • New shares (if admitted for trading);
  • Preference shares (if admitted for trading);

The market capitalisation of the underlying shares in case of depositary receipts.

The market capitalisation used is based on the average daily opening price recorded over the 60 trading days prior to the inquiry.

A new issuer is integrated in the Market Capitalisation Compartment from its admission to listing, on the basis of the first quote or the reference price as specified in the announcement of such new listing.

The Euronext Notice N°6- 02 on the Classification in Market Capitalisation Compartments issued 23 March 2005, effective 4 April 2005 provides detailed on Euronext market capitalisation compartments which are namely on market capitalisation criteria, the way securities are allocated those distinct compartments. This notice is available on our website at the section Regulation/Markets rules.

What is the professional segment of Euronext Paris?

The professional compartment was created in 2007. It is dedicated to admissions on Euronext Paris without prior initial public offering or sale of shares i.e. dedicated to admission through a direct listing or following a private placements towards qualified investors. Legislative and regulatory provisions resulting from European directives and which applies to securities admitted on a regulated market also apply on securities admitted on the Professional compartment. Admission on professional segment enables simplification of the operation realization through (i) waiver on a letter from the Auditors stating that they have completed their assignment, (ii) waiver to provide certificate by the investment service provider and (iii) waiver to translate the Prospectus summary in a language customary in the sphere of finance. Admission on the professional compartment also enables reduction of permanent and periodic information reporting obligations including possibility to (i) publish all regulated information in language customary in the sphere of finance, (ii) waiver to publish auditors fees and (iii) waiver to establish pro forma accounts in the context of periodic information. Professional compartment is open to French and foreign companies and welcomes shares and different types of securities. It allows international issuers to dual-list outside public offer domestic regime. Besides, issuer can decide to include a private placement as part of its secondary listing. By definition, obligation to offer at least 10% of securities to public or to establish a price range do not apply on this segment. On the secondary market, retail can access to the securities only on its own initiatives and after having been informed of the characteristics of this compartment by its investment service provider. Any marketing toward retail is forbidden.

What is EnterNext?

EnterNext is the Euronext subsidiary dedicated to SMEs. Launched in May 2013, it covers domestic companies listed on the B and C compartments of Euronext and Euronext Growth, i.e. issuers with a market cap of less than 1 €billion. EnterNext is a pan-European initiative, covering about 750 companies listed on Euronext’s markets in Belgium, the Netherlands, Portugal and France.

EnterNext is not an exchange but a marketplace. Therefore, there is no formal EnterNext membership The EnterNext subsidiary gathers together all Euronext’s SME resources, enabling us to define and implement a strategy focused specifically on the needs of SMEs. Our objective is to build closer relationships both with listed companies by helping them make better use of the market through secondary issues (stocks or bonds), and non-listed companies by highlighting the benefits that the financial markets can bring them. EnterNext is also very active in federating the ecosystem and promoting the market to investors and intermediaries.

The EnterNext team has a strong field presence, including local representations that have been set up in major French cities (Marseille, Lyon, Bordeaux, Nantes) as well as in Lisbon, Brussels and Amsterdam.