Introduction: Euronext

That article is about Introduction: Euronext. Euronext is a European stock exchange that is located in Paris. The same exchange has branches in the UK, Netherlands, Belgium and Portugal. Although it was operating as a single entity, by 2007 a merger took place in between New York Stock Exchange and Euronext, which resulted in the formation of NYSE Euronext.

European financial markets were in a state of constant turmoil before the formation of this stock exchange. The geographical boundaries were playing spoilsport and was affecting the entire economic condition of the European countries. In order to streamline the situation, the germination of Euronext was necessary.

Introduction: Euronext

Despite servicing the financial markets of various countries, Euronext still occupies the meritorious “fifth largest stock exchange in the world” title. However, you must never forget the fact that approximately 4000 companies are already listed in Euronext. Euronext had purchased the shares of the London International Finance Futures and Options Exchange in 2001.

Even after this transaction, LIFFE still functions as a separate entity. In any conventional stock exchange, the shares are traded in the form of company equities and derivatives. In order to ease the workload associated with Euronext, all the trades comprising derivatives take place in the electronic networks of LIFFE.

Many other stock exchanges such as the Warsaw Stock Exchange and the Helenski Exchanges have found favor in the eyes of Euronext. Euronext has already formulated various kinds of agreements with these exchanges. However, the stock exchange still refuses to take complete possession of these exchanges. Unlike the other stock exchanges, two diverse sections operate in the Euronext. They are the NextEconomy and NextPrime.

NextEconomy lists companies that are proficient in the IT and medical (biotechnology) sector. Conversely, the NextPrime section includes companies that indulge in other conventional activities. A consistent trading history with a positive outlook must be present for any company to be listed in the Euronext.

Like all the other stock exchanges, Euronext too follows the practice of segregating indexes. For instance, you will find the quoted companies included in Euronext 100, the Next 150. Zero liability companies with good trading history are often included in the Euronext 100.

The Next 150 houses the rest of the companies that present the next largest stocks. If you wish to trade using options and futures, then you can do so with the aid of Euronext.liffe. Options and futures are exclusively chosen by those unwilling to take risks with the stock market.

You must have a good understanding about the LIFFE electronic platform, if you wish to undertake trading sessions in the Euronext stock exchange. In fact, most of the renowned exchanges have already implemented stable and safe electronic platforms to impart additional convenience to the traders.

In order to generate additional revenue, Euronext is well known to lease their resources to other major stock exchanges operating in different parts of the globe. A typical instance is when Euronext leased the LIFFE CONNECT platform to the Tokyo International Financial Futures Exchange. The Chicago Board of Trade uses a subsidiary of this platform to execute afterhours trading.

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