Euronext Stock Exchange (ESE)

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euronext stock interchange (ese) – stock interchange in america.

euronext n. V. Is a pan-european stock interchange based in amsterdam and with subsidiaries in belgium, france, netherlands, portugal and the unified kingdom. In addition to equities and derivatives markets, the euronext group provides clearing and info services. As of august 2010, markets run by euronext had a market capitalisation of us$ 2. 41 trillion, making it the 5th greatest interchange internationally. Euronext unified with nyse group in april 4, 2007 to shape nyse euronext, the “ introductory global stock exchange”.

background.

euronext was formed on 22 september 2000 following a merger of the amsterdam stock interchange, brussels stock interchange, and paris bourse, in order to take vantage of the harmonisation of the european union financial markets. In december 2001, euronext acquired the shares of the london global financial futures and options interchange (liffe), which proceeds to operate underneath its own governance. Beginning in early 2003, all derivatives productions swopped on its affiliated exchanges trade on liffeconnect, liffe’s electronic trading platform. In 2002 the group unified with the portuguese stock interchange bolsa de valores de lisboa e porto (bvlp), renamed euronext lisbon. Hours of operation on non-holidays are 9:00-17:30 cet.

structure and indices.

euronext has cross-membership and cross-access agreements with the warsaw stock interchange for their cash and derivatives productions, and with the helsinki exchanges on cash trading; ownership agreements are presently excluded. The euronext list encompasses all cited companies. It is having two segments; nexteconomy, consisting of companies whose equities are swopped without being interrupted and are active in spheres such like info engineering and biotechnology, and nextprime, consisting of companies in more traditionalistic spheres that are swopped without being interrupted. Inclusion in the segments is voluntary.

euronext manages two broad-based indices. The euronext 100 index is the blue chip index. The following 150 index is a market capitalisation index of the 150 next greatest stocks, representing the huge- to mid-capitalisation segment of listed stocks at euronext. The nexteconomy and nextprime segments every have a price index and a total return index, weighted by market capitalisation and excluding the shares listed in the euronext 100 index. The indices have a base date of 31 december 2001, with a starting level of 1000 points. Six nextweather weather indices for france, launched in january 2002, are between the sector indices planned by euronext. Interchange swopped funds, called trackers, comprise euronext’s nexttrack product segment, and have been introduced on the aex index, cac 40, euro stoxx 50, and various pan-european territorial and sector indices. Euronext has introduced various commodity futures contracts, available to all parts. Winefex bordeaux futures are swopped on euronext paris. Euronext. Liffe is the subsidiary of euronext responsible for all options and futures contracts trading, formed by the merger of the derivatives actions of the various parts of euronext with liffe.

euronext. Liffe

euronext. Liffe was formed in january 2002 from the takeover of the london global financial futures and options interchange by euronext. The derivatives actions of the other constituent exchanges of euronext (amsterdam, brussels, lisbon and paris), were unified into euronext. Liffe. Trading is done electronically through the liffe connect platform. Euronext. Liffe offers a wide range of futures and option productions on short-term interest rates, bonds, swaps, equities and commodities. 200px applied from 2000 to 2007 volumes in 2004 were split as follows:

interest rate: 313. 3 million contracts

Equities: 468. 8 million contracts

Commodities: 8. 0 million contracts

in addition to this, it sells its engineering to third parties. Since april 2003, the tokyo global financial futures interchange has run on liffe connect. Moreover, in january 2004, the chicago board of trade started electronic trading using e-cbot, which is powered by liffe connect. As a result, the kansas city board of trade, the minneapolis grain interchange and the winnipeg commodity interchange use liffe connect for their overnight trading. 200px

alternext.

alternext was formed in 2005 by euronext to help little and mid-class companies in the eurozone seek financing. From that time of the merger of euronext and nyse since 2006, now completed in 2007, this market is now a section of nyse euronext, named nyse alternext.

merger with nyse.

due to apparent moves by nasdaq to acquire the london stock interchange, nyse group, possessor of the new york stock interchange, offered €8 billion (us$ 10. 2b) in cash and shares for euronext on 22 may 2006, outbidding a rival offer for the european stock interchange operator from deutsche börse, the german stock market. Contrary to affirmations that it would not raise its bid, on 23 may 2006, deutsche börse unveiled a merger bid for euronext, valuing the pan-european interchange at €8. 6 billion (us$ 11b), €600 million over nyse group’s introductory bid. In spite of this, nyse group and euronext penned a merger agreement, subject to stock holder vote and regulatory approval. The introductory regulatory response by sec chief christopher cox (who was coordinating heavily with european counterparts) was positive, with an expected approval by the end of 2007. The new firm, tentatively dubbed nyse euronext, would be headquartered in new york city, with european operations and its trading platform run out of paris. Then-nyse ceo john thain, who was to head nyse euronext, intended to use the combining to shape the world’s introductory global stock market, with constant trading of stocks and derivatives over a 21-hour time span. In addition, the two exchanges hoped to add borsa italiana (the milan stock interchange) into the grouping.

deutsche börse dropped out of the bidding for euronext on 15 november 2006, removing the last major hurdle for the nyse euronext dealing. A run-up of nyse group’s stock price in late 2006 made the supplying far more attractive to euronext’s stockholders. On 19 december 2006, euronext stockholders approved the dealing with 98. 2% of the vote. Only 1. 8% voted in favour of the deutsche börse offer. Jean-françois théodore, the chief executive officer of euronext, stated that they expected the dealing to close within three or four months. Some of the regulatory agencies with jurisdiction over the merger had already given approval. Nyse group stockholders gave their approval on 20 december 2006. The merger was completed on 4 april 2007, forming nyse euronext.

attempted merger with deutsche börse.

on november 25, 2008, deutsche börse and nyse euronext started out merger talks which involved creating a keeping company to buyout deutsche börse stockholders, then use euronext to merge into the new corporation. A deal was reportedly not struck due to valuation deviations. Nonetheless, such a merger would develop the greatest interchange in history.