The acquisition of the Irish Stock Exchange by Euronext was just completed, as planned, within Q1 2018, after it received approval from the regulatory authorities. Markets and the ISE in particular responded favourably to the move, which sets to further join the Irish Stock Exchange with other bourses across Europe.
ISE Acquired by Euronext after a Great Performance
The acquisition deal which was brokered at €137 million will add the ISE to the list of stock exchanges under the Euronext name. It was described as a significant milestone for the pan-European stock exchange in its mission to unite major European capital markets, as ISE currently lists over 36,000 securities for over 4,000 issuers. It comes at a time where the Irish market is performing very well, as according to the Independent, the ISE saw the volume of its equity turnover grow by 42% this year as compared to the same time in 2017, while equity deals went up by 50% and listings are running at 15% in comparison to last year.
It also taps into what seems to be a wider interest of the general public into stock investment and trading in general, as more and more people are turning to online trading platforms and discovering what is CFD. Complex derivative products like CFD (contracts for difference) allow individuals to trade in markets like equities, indices and forex without actually having to buy and sell shares, while they also provide the options of leverage and 24-hour trading, which makes them popular with retail investors. In contrast, traditional trading platforms like the ISE remain largely the domain of professional brokers – and the Euronext deal is set to boost their business even further.
Euronext Dublin to Join Five European Stock Exchanges in Federal Model
The ISE is set to change its business name to Euronext Dublin, as it joins the bourse of Amsterdam, London, Paris, Brussels and Lisbon under the Euronext umbrella. As indicated in the acquisition deal, the CEO of ISE Ms Deirdre Somers will take on the role of CEO of the new Euronext Dublin and will also get a position on the managing board of Euronext. The chairman of the Euronext managing board Mr Stéphane Boujnah emphasised that the Central Bank of Ireland helped the process go smoothly, from its position as the regulatory authority, as this was not the first time that it dealt with such an international deal.
The Independent furthers reports that Euronext plans to launch a new organisational structure within the next weeks to respond to the needs of the acquisition. It offers a pan-European liquidity pool and unified rules that go with its federal model, along with cutting-edge proprietary technology. It hopes that adding the ISE to its roster will enhance its market position after Brexit unfolds, as well as its general standing, as the Irish bourse has topped the global rankings in terms of investment and bond. Last year alone saw enterprises like Nokia and Ryanair as well as governments from Ireland to Kuwait, Oman and Saudi Arabia issue debt with the ISE.
Euronext has expressed its enthusiasm at the deal, which it sees as pivotal for consolidating its market leadership and crucial for its growth plan, hoping that it will allow the federal group to better respond to upcoming opportunities as it goes forward.
