NYSE Euronext launches an SME marketplace
NYSE Euronext (NYX) is beefing up its strategy and resources for small and medium-sized companies (SMEs) by launching a subsidiary dedicated to these businesses.
The project, set for launch on May 23, was developed in conjunction with market participants and is a key component of a dynamic financing framework designed especially for SMEs, the exchange said.
It will contribute to other measures for SMEs recently announced in France, as well as to various initiatives supporting SMEs prepared in Belgium, The Netherlands and Portugal.
The new entity will cover the B and C compartments of NYSE Euronext’s regulated market, as well as NYSE Alternext in each of the European countries where the group operates — a total of nearly 800 companies.
Managed by a dedicated subsidiary set up in France, it will have its own brand, operating budget and team. The structure will be headed by a CEO recruited externally.
It will have a 15-member international board of directors including the CEO, seven qualified external directors and seven directors from NYSE Euronext. Board members will be announced on 23 May and will focus on subjects of critical importance to SMEs.
The subsidiary will also have sales teams covering all NYSE Euronext markets. Some will operate from regional locations where they can make best use of close ties to small and medium-sized companies. Working with local networks and players, their brief is to help SMEs gain access to markets.
Following discussions with market participants, NYSE will contribute an annual €18m budget, with part going directly to the subsidiary. A range of promotional offers will be announced once the new entity has been launched, with a 50% reduction in transfer fees for companies moving from the regulated market to NYSE Alternext, and a 10% reduction in listing fees.
The “ambitious” project will give NYSE Euronext a truly pan-European market dedicated exclusively to SMEs, with a central orderbook and a transparent market model, the exchange said.
Dominique Cerutti, President and Deputy CEO of NYSE Euronext, and Chairman of the Managing Board of Euronext NV said action is “both our mission and our firm belief”, given how difficult it can be for SMEs to secure financing.
“NYSE Euronext is fully committed to assisting company leaders and all parties prepared to act to strengthen the entrepreneurial network, which makes a key contribution to growth and job creation.”
In 2012, NYSE Euronext’s European markets allowed businesses to raise over €83bn, including more than €57bn in France alone.
NYSE Euronext (NYX) exchanges in Europe and the United States trade equities, futures, options, fixed-income and exchange-traded products. With some 8,000 listed issues (excluding European Structured Products), NYSE Euronext equities markets – the New York Stock Exchange, NYSE Euronext, NYSE MKT, NYSE Alternext and NYSE Arca – represent one-third of world equities trading.
NYSE Euronext also operates NYSE Liffe, one of the leading European derivatives businesses and the world’s second-largest derivatives business by value of trading.