NYSE Euronext has underscored its commitment to SMEs with a raft a new measures designed to provide easier access to capital markets and improving both the visibility and the liquidity of midsize companies listed on its European market.
NYSE Euronext is setting up a strategic planning committee that will give SMEs greater say in market governance, whether they are listed in the B and C compartments of its regulated market or on NYSE Alternext. Composed of issuers, intermediaries and other key stakeholders, this will be in place by the end of 2011. It will be chaired by Fabrice Demarigny, a lawyer with Marccus Partners, Head of Capital Market Activities at Mazars Group and author of a report on the Small Business Act for Europe. The Committee’s brief includes identifying key priorities in developing the market for SMEs, and helping the NYSE Board of Directors to make strategic choices in this segment.
NYSE Euronext is developing a new pan-European offering for the listing, placement and trading of corporate bonds. Designed especially for listed and unlisted SMEs, this new system will boost their visibility and diversify their sources of financing. NYSE Euronext will promote the system to investors, who will gain direct access to these investment securities through it.
In addition, NYSE Alternext recently launched two new segments – Public Offering and Private Placement –to distinguish companies listed by private placement from those listed by public offering. Since the beginning of 2011 there have been ten listings through public offerings, confirming a return to favour for this procedure despite difficult market conditions. Over the same period, four listings have taken place through private placements.
NYSE Euronext plans a substantial increase in the number of training and information workshops for listed companies and listing candidates. Sessions are currently organised year round in conjunction with top specialists and major banking/brokerage networks. NYSE Euronext’s next key industry event will be its first annual stockmarket conference, to be held on 9 November in Paris, with participants representing the entire financial community. In the past 18 months, NYSE Euronext has directly organised or sponsored no fewer than 191 similar events in France.
NYSE Euronext is also working hard to structure the market’s ecosystem, and between now and the end of 2011 will be bringing together professional auditors and certified accountants. This builds on the creation of ALIS – the Association for Listing Sponsors – in May 2010, and ADB – the Securities Lawyers’ Association – in September 2011.
Finally, NYSE Euronext recently expanded its dedicated sales force for SMEs with a view to stepping up regional initiatives. Agreements with Lyon Pôle Bourse and CEFIM in Marseilles have been renewed, along with other initiatives in regions around France.
“SMEs create value and jobs. They are a driving force in economic development in the eurozone, and represent around 80% of companies listed with us – which places them at the heart of our business and makes them a strategic priority,” says Dominique Cerutti (pictured), President and Deputy CEO at NYSE Euronext. “Our merger with Deutsche Börse will raise French SMEs’ profile with investors already active in the German market, and give them access to a larger pool of liquidity and investor base. Encouraging these companies to turn to stock markets to finance their operations will be a priority for the new entity created by the merger.”
“NYSE Euronext is working hard to create a better balance of sources of finance for businesses in Europe, as recommended by most economists tracking the impact of the financial crisis” adds Cerutti. “Today 30% of financing for European businesses comes from financial markets, compared with 70% from bank loans and private equity. And the proportion is even lower for SMEs.”
“Going public allows companies to diversify their resources and consolidate their capital more easily to finance growth," notes Cerutti. “At NYSE Euronext, we promote the benefits of listing, and we do so with energy and conviction. We are also launching ever more initiatives, but we need to rally the full range of stakeholders to achieve results in keeping with SMEs’ needs. Our expanded governance project is an excellent example of this strategy.”
