• This significant milestone completes the migration of Euronext clearing business from LCH SA to Euronext Clearing and completes the integration of the Borsa Italiana Group
• The migration was delivered as planned and on schedule, and is the final step in reaching the targeted €115 million of run-rate EBITDA synergies by the end of 2024
• Euronext Clearing has become a leading multi-asset class clearing house in Europe
• Euronext is now the leading pan-European market infrastructure integrated across the entire trading value chain (listing, trading, clearing, settlement and custody), for the benefit of its clients and the attractiveness of the European markets

Euronext, the leading pan-European market infrastructure, is pleased to announce the successful completion of the expansion of Euronext Clearing activities to all Euronext financial derivatives markets. This milestone marks the conclusion of the migration from LCH SA to Euronext Clearing and the end of the contractual relationship with LCH SA. This was the final phase in the European expansion of Euronext Clearing, to create Euronext’s multi-asset class clearing house. This achievement, realised on schedule in September 2024, marks the last critical achievement in completing Euronext’s ‘Growth for Impact 2024’ strategic plan and the integration of the Borsa Italiana Group, three years after it was acquired by Euronext.

Over the last three years, Euronext has successfully and seamlessly migrated its core data centre from the UK to Italy, migrated Borsa Italiana cash and derivatives markets to its proprietary trading platform Optiq®, and expanded the clearing activities of Euronext Clearing to all Euronext cash and derivatives markets across Europe. The completion of the clearing migration solidifies Euronext’s role as a central player in the European financial landscape, positioning Euronext Clearing as the third-largest clearing house1 in Europe, underscoring its rapid growth and influence in the post-trade space.

The expansion to Euronext financial derivatives markets follows Euronext Clearing’s successful expansion to Euronext’s cash markets in November 2023 and commodity derivatives in July 2024. Euronext Clearing is now positioned as the Central Counterparty (CCP) for all of Euronext’s derivatives markets, to provide a robust and unified clearing solution across a comprehensive range of asset classes. The expansion of Euronext Clearing to all Euronext derivatives markets is a strategic milestone that brings significant benefits to market participants. These benefits include enhanced risk management through a VaR-based margin methodology, improved efficiency and reliability in risk capture and allocation, and the introduction of a unified equity and derivatives default fund to facilitate cross-margining. Clients can now streamline their collateral management and access consolidated information on collateral, risk and clearing activities through a single platform.

This integration strengthens Euronext’s ability to offer end-to-end solutions across the entire trading value chain, from listing, trading to clearing, settlement and custody. It also paves the way for further innovation and growth, empowering clients to optimise their trading strategies and operational efficiencies.

With the completion of this last phase of the clearing migration project, Euronext is on track to reach its target of €115 million run-rate annual EBITDA synergies by the end of 2024, as outlined in its ‘Growth for Impact 2024’ strategic plan. The expansion of the Euronext Clearing operations and business underscores Euronext’s ongoing dedication to delivering innovative and integrated market solutions, driving future growth and maintaining its leadership in the European and global financial ecosystems.

Stéphane Boujnah, CEO and Chairman of the Managing Board of Euronext, said: “Euronext continues to strengthen the backbone of the Capital Markets Union in Europe by expanding Euronext Clearing services to financial derivatives activities. The successful expansion of Euronext Clearing contributes to the defragmentation and the harmonisation of post-trade activities in Europe, to increase the attractiveness of our markets. This ensures that our single European liquidity pool is supported by a simplified, streamlined and fully integrated post-trade structure. I want to thank the LCH SA teams for the constructive cooperation that made this smooth migration possible.”

Anthony Attia, Euronext Global Head of Derivatives and Post-Trade, said: “This landmark achievement marks the end of the transformation of Euronext Clearing and the end of the migration of Euronext markets from LCH SA to Euronext Clearing. By offering a comprehensive clearing solution across multiple asset classes, we enhance the efficiency and reliability of the markets we serve, delivering significant value to our clients. Thanks to this achievement, Euronext now offers a streamlined and efficient market environment and is ready to innovate and develop new derivatives and clearing solutions for our clients.”

Euronext Acquires Leading Research And Market Data Benchmarking Provider Substantive Research

Euronext announces that it has acquired 100% of Substantive Research, an industry-leading pioneer providing in-depth transparency on product and pricing comparison for investment research spend, market data and investment research content.

Founded in 2015 and headquartered in London, Substantive Research provides research and market data benchmarking to a growing base of over 100 global clients, across Europe and North America, including asset managers, hedge funds, wealth managers, sell-side institutions and private markets. Substantive Research provides valuable insights into research pricing and spending, benchmarks of market data providers, and automated delivery of user-customised research content.

Euronext, through its subsidiary Commcise, offers cloud-based, fully-integrated commission management, research valuation, consumption tracking and payment solutions which are connected to over 1,000+ capital markets participants globally. Commcise brings the buy-side, sell-side and research providers together using technologies that are designed to service the needs of each participant, and its business has grown rapidly since joining Euronext in December 2018.

The combination of Commcise and Substantive Research offers multiple benefits for customers. Following the integration of Substantive Research, Commcise clients will be able to gain access to unique market benchmarks within the application. This will enable asset managers to demonstrate compliance with evolving regulation with the help of a single, integrated technology solution. Substantive Research customers will benefit from Euronext and Commcise’s scale, which will help Substantive Research to grow the universe of vendors that are benchmarked and also expand the variety of benchmarking products that it can offer to the buy- and sell-side.

The transaction complies with Euronext capital allocation policy. It will further reinforce Euronext’s growing investor services segment with high-quality, recurring revenues, and strengthen the Group’s proximity with the buy-side community.

Camille Beudin, Head of Diversified Services of Euronext, said: “The acquisition of Substantive Research will accelerate the growth of our Investor Services business with leading research and market data benchmarking capabilities and cross-selling potential with Commcise, our commission management and research valuation solutions. We are looking forward to work with the teams of Substantive Research to further scale the business to the benefit of our clients worldwide.”

Mike Carrodus, Founder and CEO of Substantive Research, said:“Euronext’s acquisition of Substantive Research underlines our team’s hard work in creating a unique price benchmarking database in investment research and market data.  With the research market poised for yet more regulatory-driven changes, plus market data consumers grappling with increasing costs and pricing opacity, we are so excited to be able to accelerate our coverage and data depth with Commcise and Euronext’s insight and resources. It feels great that we can now accelerate development into areas we know our clients need greater market transparency.”

Source: Euronext