Euronext Highlights Diversification

Shanny Basar

Euronext highlighted its diversification strategy as non-volume related revenue represented 52% of total group revenue for the pan-European exchange operator in its third quarter results.

Stéphane Boujnah, chief executive and chairman of Euronext, said on the results call this morning that the firm grew revenues by 20.4% to €181.7m ($200m).

Boujnah said: “The diversification strategy of the group was further enhanced with non-volume related revenue amounting to more than 50% and covering 129% of total operating expenses.”

Stéphane Boujnah, Euronext

He continued that the growth in net income was driven by organic growth, cost management and the consolidation of Oslo Børs VP.  Euronext completed its acquisition of the Norwegian exchange group in June this year.

“Revenues for custody and settlement increased three times,” he added. “Only revenues in clearing were down due to lower commodities offsetting increased derivatives volumes.”

Green bonds

Boujnah also highlighted last month’s release of Euronext’s new three-year strategic plan, Let’s grow together 2022, which focussed on growth, innovation and sustainable finance.

Last week the exchange announced the launch of the Euronext green bonds initiative across its six regulated markets. The segment is operated out of Euronext Dublin, the group centre of excellence for debt, funds and exchange-traded funds.

The green bonds offering went live on 5 November with more than 50 participating issuers, and marked the first product launch of the 2022 strategic plan.

“With more than 44,000 bonds, Euronext is the world’s number one venue for bond listing and has become a global leader in sustainable finance, with approximately €118bn worth of green bonds listed on Euronext markets, €40bn of which was raised in the last 12 months,” said the exchange.

In order to be eligible for inclusion, green bonds must be listed on a Euronext market, be aligned with recognizable industry standards such as ICMA Green Bond Principles or the Climate Bond Initiative Taxonomy, and be accompanied by an appropriate external review performed by an independent third party.

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