Euronext Extends Automated Trading Services to Hong Kong Clientele

The European exchange has widened its gaze and market exposure into one of Asia’s foremost economic hubs with one stroke.

Euronext, Europe’s largest exchange, has received formal approval from the Hong Kong Securities and Futures Commission (HKSFC) for the provision of its automated trading services (ATS) to clients domiciled in Hong Kong, according to a Euronext statement.

The approval from the HKSFC is noteworthy as the European exchange intends to widen its gaze and market exposure into one of Asia’s foremost economic hubs. By allowing for the provision of its ATS to clients in Hong Kong, Euronext will help assure a direct membership and access to its platform between the region and its Paris derivatives markets.

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According to Tan Yueheng, Chief Executive Officer of BOCOM International Holdings Company Ltd and Chairman of Chinese Securities Association of Hong Kong (CSAHK), in a recent statement on the approval, “Applying to become Euronext’s first batch of Hong Kong members is in accordance with our group’s derivatives business strategy.”

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“Euronext, also an honourable member of CSAHK, will establish a bridge for Chinese brokers and futures companies domiciled in Hong Kong to gain easy access to the European derivatives market directly taking on board local firms as its members. In the long term, this breakthrough will allow Euronext to provide a more diversified and efficient derivatives service for Chinese clients,” he reiterated.

“China is at the core of our expansion plans and this approval is another milestone in our strategy to facilitate investment in our markets from the Chinese investment community. We can now provide clients in Hong Kong direct access to a wide range of our derivatives contracts including CAC40 index futures and options, as well as our benchmark milling wheat and rapeseed commodities,” added Lee Hodgkinson, Head of Global Markets & Sales, in an accompanying statement.

Earlier this week Euronext launched AtomX, a new service that caters to investors looking to bilaterally negotiate trades. AtomX will help allow users to fully customize and trade both options and futures, each of which will be cleared through LCH Clearnet, constituting the same clearing pool as the rest of Euronext derivatives positions. The launch comes amidst a push for more compliance and transparency in the clearing of over-the-counter (OTC) derivatives, notwithstanding the systematic risk associated with these instruments.

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