Euronext Launches French & Belgian Single Stock Offering Amidst High Demand

The exchange will see the addition of multiple short-term option classes on three Belgian shares and seven French shares.

Euronext, Europe’s largest exchange, has supplemented its offering with the launch of new weekly options on single stocks on both the Euronext Paris and Brussels derivatives markets, according to a Euronext statement.

More specifically, the exchange will see the addition of multiple short-term option classes on three Belgian shares (AB InBev, KBC Groep and UCB) and seven French shares (AXA, BNP Paribas, ENGIE, Orange, Peugeot, Societe Generale and Total).

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The launch aims to capture some of the success of Euronext’s weekly options on Dutch stocks, having been reinforced lately from market participants – back in July 2010, Euronext initiated its weekly Dutch options offering, which as of late has managed to notch increasing average daily volumes.

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Dutch options at Euronext in 2015 alone have seen a 60% YoY increase relative to the same year-to-date (YTD) period in 2014, with a steadfast 215% growth YoY from 2013. Euronext hopes to see a similar growth with its new offering. One important attraction of its weekly options is its inherently lower cost to trade than longer-dated alternatives. Furthermore, weekly options can benefit from the volatility of an individual share with short-term trading strategies.

According to Cathal Hardiman of Susquehanna International Securities Limited, in a recent statement on the new offering, “We are excited to see Euronext offering more products in this major growth area. Weekly options have seen significant growth in Europe this year, and are already very well established in the US (accounting for 25% of total options volume traded in 2014, according to TABB Group). As well as these new listings, Susquehanna market makes weeklies in all names where they are listed, and interacts with a high proportion of the weekly volumes traded in Europe.”

“With the launch of weekly options, we are answering the needs of the well-informed investor looking to leverage price fluctuations in blue chip stocks. By rolling out the successful franchise on Dutch stocks to Euronext Brussels and Paris, we are now the reference market for weekly options on Euronext listed stocks,” added Adam Rose, Head of Financial Derivatives of Euronext, in an accompanying statement.

Earlier this month, Euronext released its trading volumes for the month ending July 2015, having incurred a notable MoM decline from this past June. Euronext’s cash order book came in at just $8,590 million in July 2015, representing a fall of -12.3% MoM from June 2015.

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