Euronext, Europe’s largest exchange, has teamed up with Morningstar, inking a new agreement to help facilitate the launch of a new composite of product creation opportunities and risk management tools.
The new collaboration will be based on Morningstar’s existing index suite, which will include European indices for blue chips, aimed at providing investors with access to relevant benchmarks and related market data at a reduced cost. The partnership will also aim to target a wide ranger of investors, including asset managers, brokers, and banks.
As such, the jointly introduced products will aim to provide different investors with equity beta indices that can be utilized as benchmarks and for investable product creation. The decision to team up with Morningstar will also see the two venues lean on its Global Index Family, which also caters to disruptive business model solutions through the use of low cost licenses.
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Moving forward, Euronext will also be contributing to the partnership in another way, via the launch of options and futures contracts on the two new European indices.
According to Sanjay Arya, Global Head of Morningstar Indexes, in a statement on the partnership: “Morningstar’s mission is to create great products that help investors reach their financial goals. Our indexes practice is an extension of that mission. Our collaboration with Euronext is designed to help investors gain accessible, consistent exposure to European markets with tools to manage risk in their portfolios.”
“This agreement with Morningstar is part of our ‘Agility for Growth’ strategy aimed at diversifying and strengthening our index offering in Europe. The Euronext Group is well positioned to meet rising demand for these products from clients at a time when the European market is actively seeking new business models. Working closely with our clients lets us deliver innovative solutions to the industry as a whole,” explained Stéphane Boujnah, CEO and Chairman of the Managing Board, Euronext N.V.