Euronext welcomes the publication in France of the decree authorising active open-end funds to be admitted to trading on regulated markets or multilateral trading facilities.
Following this legislative change, Euronext will soon admit active open-end funds to trading on its regulated market in Paris. These will be available for trading on the Net Asset Value (NAV) Trading Facility.
Euronext is working closely with asset managers and key market participants to develop this new service. The launch is planned to take place in the second quarter of 2014 and will build on Euronext Amsterdam’s fund service that has successfully operated in the Netherlands since 2007.
Asset managers in France are continuously seeking new, more operationally efficient and more transparent cross-border distribution networks to gather assets, in order to thrive in an increasingly competitive environment.
The Euronext Fund Service will respond to these needs by offering a complementary cross-border distribution network across its markets. The service will offer asset managers additional visibility for their open-end funds and access to a broad base of domestic and international investors through Euronext’s community of over 200 member firms across Europe.
The ability to trade funds on Euronext Paris will allow active open-end funds to compete with other asset classes, such as equities and bonds.
Investors will be able to trade on Euronext’s regulated, transparent and secure market, and benefit from streamlined clearing and settlement.
Eric Pagniez, deputy chief executive of the French Asset Management Association (AFG), said: " The French Asset Management industry, one of the largest in Europe, welcomes this move: French asset managers will now have the option to strengthen their distribution capacity thanks to this new initiative by Euronext."
Anthony Attia, CEO, Euronext Paris, said: "Our goal is to provide an exchange markets alternative for French asset managers to encourage international investment into French domiciled funds. The legislative change allows us to offer a new choice for fund distribution in France and is another example of Euronext’s approach to providing innovative solutions for different audiences in the financial services industry."