Euronext Launches Next Generation Execution Service for Retail Investors

Euronext, the eurozone’s largest exchange, has launched Best of Book, its next generation best execution service, which the company has announced is available with immediate effect.

Best of Book provides access to superior execution quality and will provide retail investors with significant price improvement on Euronext stocks within the secure and transparent environment of the regulated market.

The service already counts a large group of retail brokers among its customers and it can now offer them the best prices on over 550 of the most liquid stocks listed on the Euronext markets.

How it Works

Trading takes place through brokers’ existing connections on an entirely transparent platform integrated in Euronext’s central order book. The service works by providing an additional layer of Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term for retail flow within the central order book.

A group of dedicated Liquidity Providers Liquidity Providers A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi Read this Term compete to offer quotes that are placed at or better than the European best bid and offer. Retail orders which are not matched against these quotes are immediately executed against the deep liquidity pool residing in the central order book.

Investors will therefore tap into the deepest source of liquidity for Euronext-listed stocks while benefiting from corresponding price advantages. Euronext noted that in Q3 2016, the pre-launch version of the service already delivered an average saving to retail investors of 9.87 basis points per trade.

Lee Hodgkinson, Head of Markets and Global Sales at Euronext, said: “Complexity in the trade execution process has increased with the proliferation of trading venues and fragmentation of liquidity. As a result of this disjointed environment, retail investors have found it difficult to prosper from the advantages of competition and choice. By launching Best of Book, ahead of MiFID II, we will deliver benefits of competition to end investors in a fair, competitive, transparent and highly regulated environment."