ISE buyer Euronext targets more deals
Euronext is looking to buy more European exchanges following last year's purchase of the Irish Stock Exchange (ISE), it said yesterday, as it strives to turn up the heat on bigger rivals Deutsche Boerse and the London Stock Exchange.
The pan-European exchange, which already operates bourses in Paris, Amsterdam, Brussels, London and Lisbon, also beat full-year core earnings forecasts, and said it should benefit from a pick-up in market volatility and an improving global economy.
"We include for the first time since our IPO a new exchange (ISE) and send a clear message to independent exchanges in Europe willing to benefit from our single liquidity pool and propriety technology platform," CEO Stephane Boujnah said on a media and analyst call after the results. Euronext bought ISE for €137m last year to boost its position in debt and fund listings, and step up competition to the London Stock Exchange Group and Deutsche Boerse.
Tight cost control and rising volumes helped Euronext to cope with relatively calm markets last year, compared with 2016 when the US presidential election and Britain's vote to leave the European Union boosted volatility.
Volatility is an important driver of trading across a range of asset classes, including futures, exchange-traded funds and cash equities.
"Our confidence is strong for the next two years. Core business revenue should grow in line with forecasts, and we will continue our cost control discipline," Boujnah said. Analysts say the Spanish stock exchange may be a target. (Reuters)