Euronext expands ETF activity to London

Lyxor lists first ETFs on new London market for ETF issuers and investors

Euronext has extended its range of ETF listing and trading venues to London, enabling ETF issuers to access the UK investor base alongside its existing Eurozone trading and distribution network. Further benefits to issuers include competitive pricing, superior European cross listing efficiency and reduced time to market. Lyxor today listed the first two ETFs on Euronext London, the Lyxor UCITS ETF FTSE EPRA/NAREIT Global Developed and the Lyxor UCITS ETF Euro Stoxx Banks [1].

Euronext provides ETF issuers with access to five European markets; Amsterdam, Brussels, Lisbon, Paris and now London, its FCA Recognized Investment Exchange. The service is delivered through a single entry point, on one technology platform with a harmonised rulebook. Clearing and settlement for London ETFs will take place through EuroCCP and Euroclear UK & Ireland respectively. The first trading participants on Euronext London include Société Générale and Kepler Cheuvreux.

“London is an important ETF market and the UK distribution network is increasingly valuable mainly thanks to the Retail Distribution Review (RDR) which is now starting to facilitate ETF penetration among the retail community,” said Lee Hodgkinson, Head of Markets and Global sales and CEO Euronext London. “By bringing together our unparalleled capital markets community we are helping Eurozone ETF issuers to extend their reach to UK investors and generate additional liquidity.”

Euronext is one of the leading platforms in Europe for ETF listing and trading, counting more than 700 instruments on its markets in Amsterdam, Brussels, Lisbon, Paris and London. Euronext’s ETF markets are strong and growing rapidly. In 2015 trading volume increased by 74%.