As we bid farewell to 2024, we are left with many questions about the dawn of 2025, a year that promises to be a game-changer. We already have key milestones within the ever-fluid EMEA regulatory landscape, including DORA and implementing the Mifid II and Mifir review. We will likely witness further regulatory divergence between the UK and the EU. Still, all parties must act swiftly to address the macro-level challenges affecting primary market listings and the lack of investment in the EMEA region. It is imperative that action is taken on all fronts. 

We should finally see, on a grander scale, AI usage moving from an over-used buzzword bingo to a reality. The pursuit of innovation will persist, with new entrants needing to demonstrate credible and distinctive credentials in a highly competitive and demanding environment, where only those that offer something unique will ultimately endure.

As the industry moves towards a consolidated tape and the looming T+1 deadline, established players will likely continue positioning themselves to expand their market share or protect their existing trading, data, and technology businesses. This is set against a backdrop of rising industry costs, which will inevitably face heightened scrutiny.  Liquidity sweet spots like retail, blocks, bilateral and VWAP crossing will again dominate many liquidity discussions. The bilateral debate will likely persist, and we can expect engaging discussions from industry participants and regulators. 

Furthermore, the ‘Trump effect’ looms on the horizon; this could exacerbate market volatility in the year ahead, a reality that will soon become apparent. In 2025, we must challenge existing workflows and the status quo to innovate and compete globally. We all have a role to play in establishing the EMEA ecosystem as a model of excellence for the global trading community next year and beyond.

Steve Walsh, director of product and solutions, Duco 

This has been one of the most consequential years for financial market regulation in a decade. New compliance requirements have reshaped frameworks in Europe and across the globe. The two most important regulations were the Emir refit at the end of April and the US transition to a T+1 settlement cycle. Both regulations aim to enhance transparency and resilience. 

The Emir refit’s primary motivation was to improve data quality and transparency in the European derivative markets with mandatory data reconciliation requirements and obligations to report material issues to national competent authorities (NCAs). While the transition was largely successful, regulators next year will need to address lingering issues around data accuracy and integrity on data reported to trade repositories. 

Meanwhile in America, T+1 has created operational difficulties, highlighting data quality and transformation issues as well as poor processes and a lack of automation throughout. Resolving these issues will be relevant in Europe as well, as T+1 is expected to reach both the EU and the UK by the end of 2027. European firms need to start preparing while learning from their US peers.

Vikesh Patel, global head of clearing, and president, Cboe Clear Europe 

In 2025, we anticipate renewed regulatory efforts to promote more resilient, efficient and integrated pan-European financial infrastructures. Striking the right balance between fostering growth and innovation on one hand and maintaining regulatory oversight and financial stability on the other will be essential for advancing the region’s capital markets and we look forward to Emir 3.0 helping bring this to life. Whilst we anticipate that talk of top-down consolidation for Europe’s post-trade infrastructure is likely to persist, we will continue to advocate for strengthening the existing competitive framework, particularly in cash equities through mandating true clearing interoperability for all major exchanges.

We remain dedicated to fostering a stronger and more resilient European market by continually driving innovation and equipping participants with the tools they need to drive a more efficient use of their capital, ultimately contributing to long-term growth and stability across the region.

Matt Smith, chief executive officer, SteelEye  

Following several years marked by significant fines for record-keeping breaches related to encrypted messaging apps, we expect to see a broadening focus in 2025. E-comms will remain a regulatory focus, but so too will areas such as voice surveillance. 

Voice surveillance currently represents a big gap in many firms’ communications surveillance programmes due to ambiguous regulatory rules. However, it is likely regulators will clarify expectations around voice surveillance in 2025, and financial firms should prepare for this. 

Currently, regulatory rules do not specify how voice data should be monitored which has resulted in many financial institutions simply carrying out manual reviews of a sample of voice calls, leaving a considerable gap for missed risks.  With advancements in transcription and analytics technology, voice surveillance will move from being an overlooked channel to a critical component of risk management frameworks in 2025. 

Simon Gallagher, chief executive officer, Euronext London 

In 2025, the realities of increased competition from the US for capital and liquidity will be a wake-up call for Europe. On both sides of the channel, policy makers will accelerate measures to bridge the gap between the region’s vast, untapped household savings and its equity markets.

As part of this wider effort, Europe will need stronger and simpler market structures. Euronext will play its full role, making material contributions to simplifying Europe’s post-trade complexity, harmonising its fragmented ETF markets and leveraging our new clearing capability to unlock value for clients. In addition, following our recent push for a single, unified European prospectus, we will continue to proactively propose ‘bottom-up’ solutions to simplify European markets.

Under strong political leadership, I am optimistic that the region will be able to catch up with the US in funding innovation and infrastructure and in creating greater wealth for its citizens. 

The post The TRADE predictions series 2025: The evolving regulatory landscape appeared first on The TRADE.

The firm is introducing 21 new German single stock options, completing its coverage of all DAX 40 index constituents, as well as six Irish and four Portuguese single stock options.

These stock options mark the first that Euronext has listed on Irish stocks.

The new listings round out the range of options contracts available across Euronext markets to give investors increased access to key assets in Europe through Euronext’s single order book.

Dedicated market makers will ensure onscreen liquidity for investors on the new stocks, according to the firm.

Read more: Fireside Friday with… Euronext’s Anthony Attia

Trading in the new options is powered by Euronext’s Optiq trading platform, which offers access to a large and diverse pool of liquidity.

Clearing will take place through Euronext Clearing, offering risk management and portfolio-wide margin efficiencies.

Euronext added that the expansion of single stock options is designed to deliver greater value to investors by allowing them to trade a broader range of European options on a single platform.

“This growth of our derivatives offer was made possible following the successful completion of the expansion of Euronext Clearing to all markets across the Euronext Group,” said Anthony Attia, global head of derivatives and post-trade at Euronext.  

“It not only allows us to broaden our equity derivatives offering, but also paves the way for future product launches as part of our new strategic plan, which will be announced in November, leveraging the full strength of our integrated pan-European model.”

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The initiative was established to further develop BondVision, a multi dealer-to-client (D2C) trading platform for rates, credit and repo, alongside promoting competition within the market.

“Sustainably competitive and straightforward” fees will be introduced by the initiative for all BondVision dealers.

This will incentivise improved service levels to clients from supporting dealers as they tap into the benefits offered, while also building on MTS’s market presence, dealer and end-user network, and proprietary technology.

The top ten BondVision dealers support the initiative’s underlying principles. This includes: Barclays, Bank of America, BNP Paribas, Crédit Agricole Corporate and Investment Bank, Citi, Deutsche Bank, JP Morgan, Morgan Stanley, Nomura and UniCredit.

“MTS is a critical component of Euronext’s growth ambitions for the coming years,” said Stéphane Boujnah, chief executive and chair of the managing board of Euronext.

“The initiative announced today with Euronext’s longstanding partners demonstrates our commitment to adapt our solutions to meet the evolving needs and priorities in the fixed income world”.

As a subsidiary of Euronext Group, MTS is committed to investing in talent and technology to support the initiative.

“We are excited to support this initiative as it fosters innovation, which has benefits for the entire European bond market,” said Pierre Morel, global co-head of investment grade trading at JP Morgan.

“By addressing key concerns like cost pressures and enhancing data use provisions, BondVision improves efficiency and delivers significant advantages to all market participants.”

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London-headquartered Substantive Research provides research and market data benchmarking to more than 100 global clients across Europe and North America.

Speaking about the deal, Mike Carrodus, founder and chief executive of Substantive Research, said: “Euronext’s acquisition of Substantive Research underlines our team’s hard work in creating a unique price benchmarking database in investment research and market data.  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. 

“It feels great that we can now accelerate development into areas we know our clients need greater market transparency.”

Read more: In conversation with… Substantive Research’s Mike Carrodus

Substantive Research will be particularly beneficial for clients of Euronext’s subsidiary Commcise, which offers cloud-based, fully integrated commission management, research valuation, consumption tracking and payment solutions. 

With the integration of Substantive Research, these clients will be able to gain access to unique market benchmarks, enabling asset managers to demonstrate compliance with evolving regulation in a single, integrated technology solution.

Camille Beudin, head of diversified services, Euronext, said: “The acquisition of Substantive Research will accelerate the growth of our investor services business with leading research and market data benchmarking capabilities and cross-selling potential with Commcise, our commission management and research valuation solutions.” 

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Anthony Attia

The new index family consists of 26 indices that measure the total return of Euro-denominated government bonds from ten Eurozone countries, deriving from the mother index Euronext MTS EGB Broad GR.

The new index family will use prices from MTS Cash trading platforms, ensuring a level of transparency and replicability that is unique in the bond market.

Euronext added that all European government bonds available for trading on MTS’s dealer-to-dealer regulated markets are eligible for inclusion in this family of indices.

Versions for all Eurozone countries, fixed coupon instruments, single-country indices, and other customised indices, are included in the index family.

“We are proud to launch this family of 26 European government bond indices, further solidifying our position as a leading index provider,” said Anthony Attia, global head of derivatives and post-trade at Euronext.

“By leveraging MTS’s high-quality trading data, we are broadening the range of investment solutions available to our clients, helping them deploy capital in European fixed income markets with greater efficiency.”

Elsewhere, Euronext and MTS are launching the Euronext MTS EU Gross Return Index, supported by MTS’s role as a DMO-designated interdealer platform for EU primary dealers, offering improved price transparency to investors.

The Euronext MTS EGB Index Family, reviewed monthly, is ideal for ETFs, investment funds, and as a reference for further customisation and sub-indices, added Euronext.

The index family is designed to support both active managers and those with passive fixed income strategies.

“Our position as Europe’s leading electronic fixed income trading platform ensures the highest level of price transparency and accuracy, providing investors with robust and reliable benchmarks,” said Angelo Proni, chief executive at MTS.

“The launch of Euronext MTS EGB Broad Index Family demonstrates our commitment to the European fixed income market.”

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Stephane Boujnah

The trading venue saw Q2 2024 revenue and income increase 12.2% when compared to the same period last year, totalling €412.9 million.

Overall trading revenue grew 20.7% to €142.7 million year-on-year, driven by increases in revenue across all trading segments compared to Q2 2023.

Fixed income trading saw the most significant increase in revenues, up 40.7% year-on-year and totalling €35.6 million.

Euronext’s fixed income trading volumes achieved record quarterly volumes at MTS, which the trading venue attributed to an economic environment favouring money markets, sustained sovereign issuance activities and supportive volatility. 

FX trading also showed promise, with a reported revenue of €7.9 million, up 28.7% -thanks to a favourable volatility environment, according to Euronext.

Similarly, cash trading and derivatives trading both saw year-on-year revenue increase; up 13.8% and 6.6%, amounting to €74.2 million and €13.9 million, respectively.

Euronext stated that cash trading revenues were supported by increased volatility, while derivatives trading reflected higher trading volumes for equity, index and commodity derivatives.

Elsewhere, within Euronext’s post-trade business, total revenues were up 16.9% year-on-year, achieving €108.9 million.

Contributing to this, clearing as well as custody and settlement figures were up 33.2% (€39.2 million) and 9.4% (€69.7 million), respectively.

Euronext’s Q2 2024 results follow a strong Q1 for the trading venue where trading revenues grew 7.4% year-on-year, driven by strong results within its fixed income and power trading segments.

Read more: Euronext sees Q1 trading venues rise despite declines in cash and derivatives

“Strong organic growth in our non-volume related businesses, combined with dynamic trading activities across asset classes drove the Group’s revenue growth to +12.2%,” said Stéphane Boujnah, chief executive and chair of the managing board at Euronext.

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The trading venue claims to be the first exchange in Europe to offer ‘plug and play’ ‘order entry in London via microwave technology.

The new offering is expected to enhance the speed of order transmission between London, UK and Bergamo, Italy where Euronext’s core data centre is located.

The EWIN has 100% fibre back-up, offering order submission via microwaves from London Equinix LD4 to Bergamo Aruba IT3 in less than 4 milliseconds.

By leveraging the faster transmission speeds of microwave technology, EWIN provides a direct communication channel, which Euronext explains reduces the time it takes to send orders to its single liquidity pool – powered by the single technology platform Optiq.

“With EWIN, we are enhancing our technological infrastructure to reinforce Euronext’s position as the leading listing and trading venue in Europe, and to provide our members with the tools they need to thrive in an increasingly competitive environment,” said Stéphane Boujnah, chief executive of Euronext and chair of the managing board of Euronext.

McKay Brothers, the largest independent microwave network provider in Europe, collaborated with Euronext to provide this new service.

“We are honoured to support Euronext’s creation of a groundbreaking wireless order entry offer. This will contribute to a more level playing field, democratise cutting-edge technologies, and improve the markets’ efficiency for investors,” said Stéphane Tyč, co-founder of McKay Brothers and Quincy Data.

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Stephane Boujnah

The trading venue saw Q1 2024 revenue and income up 8% when compared to the same period last year, totalling €401.9 million.

Overall trading revenue grew 7.4% year-on-year to €138.4 million, driven by strong results within its fixed income and power trading segments.

Fixed income revenue was up significantly – 34.5% compared to Q1 2023 – totalling €35.2 million, while power trading figures were up 23.7%, with a total revenue of €12.2 million.

Trading revenue figures were, however, offset by cash trading and derivatives trading, which were down 1.6% and 10.2% year-on-year, which resulted in totals of 70.6 million and €13.4 million, respectively.,

Euronext attributed declines to cash trading and derivatives trading to a softer trading environment.

The trading venue also posted positive results for FX trading, which saw revenues within the segment up 12.7% year-on-year, totalling €7.1 million.

Elsewhere, within Euronext’s post-trade business, total revenues were up 11.5%, achieving €104.8 million.

Contributing to this, clearing as well as custody and settlement figures were up 23.1% and 6%, with a total of €37 million and €67.8 million, respectively.

“In the first quarter of 2024, Euronext reached record revenue and income of €401.9 million. Strong organic growth in our non-volume related businesses, combined with record quarter in fixed income and power trading and double-digit growth in our post-trade activities, drove the Group revenue’s growth to +8.0%,” said Stéphane Boujnah, chief executive officer and chairman of the managing board of Euronext.

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Appital appointed John Coules to its business development team following 17 years at HSBC, most recently as a pan European equity sales trader. Coules has more than 30 years of experience in client-facing sales trading. He previously spent 12 years at Lehman Brothers, also as an equity sales trader. Speaking to The TRADE, Coules said: “I am very excited to join Mark, Brian and the team at Appital to further the ambitions of the platform. Exciting times ahead!”

StoneX Group appointed Simon Pickworth as an institutional fixed income trader for the Central and Eastern Europe, Middle East and Africa (CEEMEA) region. Pickworth previously served at MUFG for 13 years, most recently as executive director for the firm’s CEEMEA trading desk. Before joining MUFG, he held an emerging markets fixed income trading role at BNP Paribas, responsible for Middle East and North Africa (MENA), Gulf Cooperation Council (GCC), Africa and South Africa flow trading. Earlier in his career, Pickworth served as a junior syndicate desk manager and traders assistant at Paribas, prior to its merger with Banque Nationale de Paris.

BIDS Trading appointed Brian Hickey senior director of product. Hickey previously served as head of product at LedgerEdge for nearly a year and a half, prior to the trading platform closing down last year. Prior to joining LedgerEdge, Hickey spent nearly 14 years at State Street Global Advisors (SSGA) in various senior positions. Most recently, he served as head of cross-asset electronic trading, a position he held for just over three years. Elsewhere during his tenure at SSGA, Hickey was vice president across various positions, including as a senior alternatives trader, credit trader and senior equity trader. Before joining SSGA, he served as an international equity trader at Putnam Investments.

The post People Moves Monday: Euronext, Appital, StoneX Group and more… appeared first on The TRADE.

Ruiz previously spent nearly 12 years at Credit Suisse, most recently as director, sales trader for Credit Suisse’s suite of algorithmic trading strategies, Advanced Execution Services (AES).

Prior to this she held the same role as vice president for five and a half years.

Before joining Credit Suisse, Ruiz spent two and a half years at Cheuvreux as an electronic equities sales trader.

Elsewhere, Ruiz held a team leader position for European sales traders at IG Markets, alongside previously serving as a sales trader at WH Selfinvest.

“Nathalie brings with her a wealth of experience in sales trading, having spent 12 years at Credit Suisse as director of electronic sales trading covering Europe hedge funds,” said Nicolas Rivard, head of cash equity and data services at Euronext, in a social media post.

“Her passion and dedication for sales and EU capital markets make her a perfect fit for Euronext and our team!”

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