Pan-European exchange Euronext has partnered with Societe Generale to provide retail investors of the French banking giant with ‘Best Execution’, a solution that allows them to capitalise on the increasing fragmentation of liquidity, which is also a major consequence of MiFID II.
Euronext’s Best of Book provides customers in Societe Generale’s French network with price improvement on over 550 stocks listed on Euronext markets, traded through the exchange’s central order book. The tool works by adding a layer of liquidity for retail flow while a group of ‘dedicated liquidity providers’ compete openly to offer quotes that are at, or better than, the European Best Bid and Offer.
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The principle of offering clients best execution is required by MiFID II rules, which came into force in January 2018, and has long been lacking for retail investors. As such, the service enables users to benefit from a greater quality of order execution, whilst facilitates compliance with regulatory requirements for the brokerage community.
Commenting on the partnership, Laurent Goutard, Head of Societe Generale Retail Banking in France, noted: “By offering Best of Book to our investor clients, Societe Generale guarantees the best execution of their buy and sell trades on European markets. Our customers gain access to better prices for over 550 Euronext shares, including the Societe Generale share. This solution is transparent and complies with new regulations (MiFID II), and another reason to invest in shares directly through our app or our website.”
Anthony Attia, CEO of Euronext Paris, added: “Our partnership with Societe Generale is a milestone in the expansion of our Best of Book offer. Together, we will support retail investors by providing a transparent and cost-efficient order execution service.”