The leading European derivatives exchange Euronext announced two significant developments today (Tuesday): the successful expansion of its clearing operations to all financial derivatives markets and the acquisition of research benchmarking provider Substantive Research.

Euronext Expands Clearing Operations, Integrates Borsa Italiana

The completion of Euronext Clearing's expansion to derivatives markets marks the final phase of migrating clearing activities from LCH SA. This milestone concludes the integration of the Borsa Italiana Group, which Euronext acquired three years ago.

“The successful expansion of Euronext Clearing contributes to the defragmentation and harmonization of post-trade activities in Europe, increasing the attractiveness of our markets,” stated Stéphane Boujnah, CEO of Euronext. “This ensures that our single European liquidity pool is supported by a simplified, streamlined and fully integrated post-trade structure.”

With this expansion, Euronext Clearing has become the third-largest clearing house in Europe, offering a unified clearing solution across multiple asset classes. The move is expected to enhance risk management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term and operational efficiencies for market participants.

“By offering a comprehensive clearing solution across multiple asset classes, we enhance the efficiency and reliability of the markets we serve, delivering significant value to our clients,” added Anthony Attia, Euronext's Global Head of Derivatives and Post-Trade. “Euronext now offers a streamlined and efficient market environment and is ready to innovate and develop new derivatives and clearing solutions for our clients.”

Exchange Acquires Research Benchmarking Firm

Euronext also announced the acquisition of Substantive Research, a London-based firm specializing in research and market data benchmarking. The purchase aims to bolster Euronext's investor services segment and strengthen its relationship with the buy-side community.

Substantive Research, founded in 2015, provides insights into research pricing and spending to over 100 global clients, including asset managers, hedge funds, and wealth managers.

“The acquisition of Substantive Research will accelerate the growth of our Investor Services business with leading research and market data benchmarking capabilities,” said Camille Beudin, Head of Diversified Services at Euronext. “We are looking forward to working with the teams of Substantive Research to further scale the business to the benefit of our clients worldwide.”

The integration of Substantive Research with Euronext's subsidiary Commcise is expected to offer enhanced compliance solutions for asset managers and expand benchmarking products for both buy-side Buy-Side The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim Read this Term and sell-side clients.

“With the research market poised for yet more regulatory-driven changes, plus market data consumers grappling with increasing costs and pricing opacity, we are so excited to be able to accelerate our coverage and data depth with Commcise and Euronext’s insight and resources,” concluded Mike Carrodus, Founder and CEO of Substantive Research.

In August, investor activity in Euronext's currency market amounted to $638 billion compared to $583 billion in July. ADV jumped to $29 billion, up from $28 billion.