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Euronext launches electronic trading platform for non-listed securities

Euronext has launched Euronext Expert Market, an electronically traded secondary market offering a transparent and secure platform for the sale of non-listed securities by weekly auction.

Based in Belgium, the Euronext Expert Market is classed as a Multilateral Trading Facility and is the first market of its kind to be set up by a European exchange. The Euronext Expert Market replaces the former floor-traded Belgian Public Auctions Market (Marché des Ventes Publiques/Markt van de Openbare Veilingen), migrating from the current open outcry format to electronic trading.

The new electronic format aims at facilitating the trading of securities that are not admitted to listing on a regulated market by offering broader and more efficient access through Euronext Expert Market members who, over the years, have built expert knowledge in trading non-listed securities. By standardising and automating the post-trade chain, this market will become more transparent and more efficient. The Euronext Expert Market will help finance the real economy by enhancing the visibility and the accessibility of all kinds of securities belonging mainly to non-listed small companies and family businesses. In addition, the Euronext Expert Market, in its public auction format, has been the reference in trading Bank Bills (Bons de caisse / Kasbons) for decades.

The Euronext Expert Market will be launched on Tuesday 9 December. As of this date, weekly electronic auctions will take place every Tuesday for securities, bonds and other fixed income instruments. The Euronext Expert Market will remain open to all investors through their bank or broker, as this new platform requires expert knowledge to determine the exact value of the instruments and the opportunity to invest in them.

Vincent Van Dessel, CEO of Euronext Brussels, says: “There is an evident need in the market for a venue where non-listed securities can be traded. The ongoing disintermediation and growing number of private initiatives on the primary market, including crowd-funding, boost the demand for a reliable and transparent secondary market. With the Euronext Expert Market, we are more than ever playing our role as a centre for financing the real economy as we will be able to offer a transparent and secure platform for trading all types of financing instruments. Moreover, by converting a market that is over 140 years old into a modern venue, we are taking advantage of our knowledge of handling a huge range of financial instruments and combine it with the unique experience of our specialised brokers and banks.”

The launch of the Euronext Expert Market has been designed to coincide with the last phase of the dematerialisation process in Belgium, which will oblige the issuers of physical securities to sell any non-reconciled positions they may have in these securities.

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