Euronext NV is exploring the possibility of consolidating all exchange-traded products (ETPs) listed across its seven European exchanges onto a single trading venue, reports Bloomberg. According to sources familiar with the matter, the move is aimed at streamlining liquidity and reducing complexity in Europe’s fragmented capital markets.
The exchange operator, which runs bourses in Amsterdam, Paris, Oslo, Brussels, Dublin, Lisbon, and Milan, is evaluating different models for consolidation, according to sources. One potential solution would see all ETPs moved to Euronext Amsterdam, while another option would allow each issuer to select a single exchange for all of its listings.
Discussions are ongoing, and a final decision has yet to be made. If implemented, changes could take effect as early as the third quarter of 2025. A spokesperson for the exchange declined to comment on the plans when contacted by Bloomberg.
Fragmentation in Europe’s ETF market
With more than 3,000 product listings from around 50 issuers, Euronext’s plan comes at a time when Europe’s ETF industry is grappling with inefficiencies caused by market fragmentation. Unlike the U.S., where the ETF sector has consolidated around a handful of major venues, European ETFs are often listed across multiple jurisdictions, leading to divided liquidity and increased costs for issuers.
The European ETF market has grown rapidly in recent years, reaching around $2.4 trillion in assets, but still lags behind the nearly $11 trillion U.S. industry. Euronext’s proposal aligns with broader European Union efforts to unify capital markets, including the long-awaited introduction of a consolidated tape.
Clearing and settlement considerations
If Euronext moves forward with centralising listings in Amsterdam, the exchange operator is expected to ensure access for participants not yet connected to that venue. According to Bloomberg, sources indicate that Euronext is also assessing how to structure clearing and settlement under the new system. One potential model would see euro-denominated products settled through Euronext Securities, while non-euro-denominated trades could be processed via Euroclear Bank.
