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Euronext: The Architects of European Capital Markets
I. Introduction: Europe's Market Plumber Becomes a CAC 40 Giant
On a crisp September morning in 2025, French Finance Minister Éric Lombard joined Stéphane Boujnah at the Paris Stock Exchange to ring the ceremonial bell. As of September 22, 2025, Euronext officially joined the CAC 40, France's flagship blue-chip index. This inclusion marked a defining moment in Euronext's evolution from a national exchange group to a diversified, integrated European leader.
The symbolism was unmistakable: the company that runs Europe's largest stock exchange had finally become significant enough to join the elite tier of companies it lists. Euronext's market capitalisation grew from €1.4 billion at IPO in June 2014 to €14.5 billion by August 2025—a tenfold increase in just over a decade.
But the CAC 40 milestone tells only part of the story. Euronext N.V. (short for European New Exchange Technology) is a European bourse that provides trading and post-trade services for a range of financial instruments. Registered in Amsterdam but with operational headquarters in Paris, it operates major stock exchanges in eight countries: France, the Netherlands, Belgium, Ireland, Portugal, Italy, Greece, and Norway.
The company's transformation over the past decade represents one of the most remarkable corporate comebacks in financial services. In 2024, Euronext achieved several key milestones that allowed it to expand its presence across the entire capital markets value chain, finalizing the integration of the Borsa Italiana Group and exceeding its 2024 financial targets for revenue and EBITDA growth. It also strengthened its non-volume business with strategic acquisitions such as GRSS, Substantive Research, and Acupay.
The central question this analysis explores: How did three European bourses create a model for cross-border exchange consolidation, survive being absorbed by the NYSE, get spun off by a commodities giant, and emerge as Europe's dominant market infrastructure?
Euronext's entry into the CAC 40 Index reflects the Group's significant development since its initial public offering in June 2014. Euronext's share price performance since 2014 demonstrates how the Group has transformed itself and, more widely, European capital markets. At IPO, Euronext operated four market infrastructures across Europe. Today, Euronext is the leading European capital market infrastructure, operating regulated markets across seven countries.
Supported by Euronext's trademark cost discipline, annual EBITDA has more than quadrupled from €225.4 million in 2014 to more than €1.0 billion adjusted EBITDA in 2024.
The story spans over four centuries of financial innovation—from the world's first stock exchange in Amsterdam to the digital trading platforms of today—and reveals how a company that was once an afterthought in a commodities conglomerate's portfolio became the backbone of European capital markets.
II. The World's First Stock Exchange: Amsterdam Origins (1602-1990s)
To understand Euronext's strategic position, one must first appreciate the extraordinary historical foundation upon which it stands. The company traces its lineage to nothing less than the invention of modern finance itself.
The Amsterdam stock exchange is considered the oldest "modern" securities market in the world. It was created shortly after the establishment of the Dutch East India Company (VOC) in 1602, when equities began trading on a regular basis as a secondary market to trade its shares.
The VOC's creation represented a quantum leap in financial engineering. Established on March 20, 1602, by the States General of the Netherlands amalgamating existing companies, the VOC was granted a 21-year monopoly to carry out trade activities in Asia. Shares in the company could be purchased by any citizen of the Dutch Republic and bought and sold in open-air secondary markets, one of which became the Amsterdam Stock Exchange.
Consider the audacity of this innovation. The Dutch East India Company held its 'initial public offering' in August 1602. It was the first of its kind in world history and therefore a key event in financial history, and the history of the capitalist world. "All the residents of these lands," stated article 10 of the VOC charter, "may buy shares in this Company." Subscribers could decide for themselves how much to invest: there was no minimum or maximum.
A sum of 3,674,945 guilders was raised from the 1,143 initial investors. One of them was Neeltgen Cornelis, who worked as a maid for one of the owners of the VOC. She invested 100 guilders, a hard-earned sum when her wage amounted to 50 cents a day. This democratization of capital formation—allowing ordinary citizens to share in mercantile risk and reward—would reshape the global economy.
The VOC also transformed the Amsterdam Stock Exchange, causing a number of innovations to be introduced, such as futures contracts, options, short selling, and even the first bear raid. The Vereenigde Oost-Indische Compagnie was not only the first multinational corporation to exist, but also probably the largest corporation in size in history. The company existed for almost 200 years from its founding in 1602 until its demise in 1796.
The other founding members of Euronext also carry distinguished pedigrees. Although the Paris Bourse was initially created in 1724, the modern bourse had its true start with the arrival to power of Emperor Napoleon. The new government restructured France's economy, establishing the Banque de France as the exclusive issuer of banknotes. The modern Bourse de Paris was given official status in 1801; construction of the new exchange building, the Palais Brongniart, began soon after and was completed in 1827.
The Brussels Stock Exchange, meanwhile, developed in the 1990s through modernization reforms. In the 1990s, the Brussels Bourse joined in the movement toward creating a single pan-European investment market. The country's stock market was modernized through the passage of the Financial Transactions and Market Act of 1990. Then, in 1999, the government merged the country's exchange operations, including the Bourse de Brussels, Belfox (the Belgian Futures and Options Exchange), and the country's central securities depository, CIK, into a single company called Brussels Exchanges.
Amsterdam also played a pioneering role in modern derivatives. The European Options Exchange (EOE) was founded in 1978 in Amsterdam as a futures and options exchange. In 1983, it started a stock market index, called the EOE index, consisting of the 25 largest companies that trade on the stock exchange.
The key insight from this history is that the invention of the public stock market wasn't just Dutch innovation—it was risk management technology that enabled globalization. The same principles that allowed 17th-century merchants to spread the risk of spice trading across thousands of investors would eventually underpin the Euronext business model: pooling liquidity, standardizing rules, and creating trusted infrastructure for capital formation.
III. The Euro, Consolidation, and the Birth of Euronext (1998-2001)
The Catalyst: Single Currency, Fragmented Markets
The late 1990s brought a fundamental question to European finance: Would the single currency create a single market? The introduction of the euro eliminated currency risk within the eurozone, but capital markets remained stubbornly national in character. Each country maintained its own exchange, its own clearing house, its own listing rules. The opportunity for consolidation was obvious; the execution would prove treacherous.
In 1998, the London Stock Exchange and Deutsche Börse announced their intention of forming an alliance to fend off competition from the United States and take advantage of the European Union's single currency and harmonisation of financial markets. In April 1999, the stock exchanges in Paris, Zurich, Madrid, Brussels, Amsterdam, and Milan signed a memorandum of understanding in Madrid, which formalised plans to include these bourses as well.
In the meantime, the run-up to the creation of the single European currency had led to a jockeying for position among the region's three largest exchanges—London, Frankfurt, and Paris—to see which would become the financial center for the new Europe. In 1998, Bourse de Paris appeared to have lost the race, after Deutsche Börse and the London Stock Exchange announced their plans to merge to form the IX Stock Exchange. The new partners offered to include Bourse de Paris in the new company, but only as a minority partner at just 20 percent.
Jean-François Théodore's Countermove
Enter Jean-François Théodore, the man who would become the architect of Euronext. Jean-François Théodore (December 5, 1946 – May 18, 2015) was a French businessman who served as President, Chairman and CEO of Euronext N.V. Born in Paris to civil servants, he attended Institut d'Études Politiques de Paris, the prestigious École Nationale d'Administration (ENA), and received his law degree from Université de Paris. He began his career at the Treasury Department in the Ministry of Economy and Finance, where he worked from 1974 to 1989.
He became head of SBF Bourse de Paris in 1990, then spurred the creation of Euronext a decade later. Théodore was exactly the kind of énarque—graduate of France's elite civil service academy—who understood both the mechanics of financial markets and the politics of European integration.
The outraged Théodore declined the 20% minority stake offer and instead sent out an offer to the stock exchanges in Milan, Madrid, Amsterdam, and Brussels to form a counterforce to the proposed IX exchange. The Amsterdam and Brussels exchanges took up the offer, leading to the creation of Euronext in 2000.
Following the move to the Euro, Théodore saw that consolidation was the future of the financial markets. Through his efforts, in 1999, various French markets (MATIF, MONEP, New Market) merged into a single company Paris Stock Exchange (Paris Bourse SA). His next efforts were concentrated on forming a new pan-European exchange and moving the European financial market to a more modernized structure. In 2000, this resulted in creation of Euronext with a merger of the former Paris, Brussels, and Amsterdam national exchanges. At the time of its creation, the stocks listed on Euronext markets had the combined value of $2.2 trillion, which was almost twice that of the Deutsche Börse in Frankfurt at $1.4 trillion.
Ultimately, only three decided to proceed, and on September 22, 2000, Euronext was formed following a merger of the Amsterdam Stock Exchange, Brussels Stock Exchange, and Paris Bourse. The new entity combined the continental exchanges into a unique federal model with unified rules and a Single Order Book, operating on the same electronic trading platform and cleared by LCH S.A.
In September 2000, Théodore initiated the creation of Euronext, the first pan-European exchange, and was appointed Chairman of the Management Board. Created in September 2000, Euronext brought together the exchanges of Amsterdam, Brussels and Paris around a single exchange operator model. In 2001, he led the IPO of Euronext.
Théodore's colleagues, financial market specialists, and press noted that his efforts and achievements were not so much for personal financial gain, but for reaching the goals of his vision for the company and the markets. In part, the success and speed of achievements were attributed to his modest approach, absence of arrogance and strength of conviction. He was described as having a Gallic sang-froid as well as charm, being prudent, patient and paying a great deal of attention to details.
Early Expansion: LIFFE and Lisbon
The young company moved quickly to expand. In December 2001, Euronext acquired the shares of the London International Financial Futures and Options Exchange (LIFFE), forming Euronext.LIFFE. In 2002, the group merged with the Portuguese stock exchange Bolsa de Valores de Lisboa e Porto (BVLP), renamed Euronext Lisbon.
In 2002, Théodore convinced the shareholders and management of LIFFE, the second largest derivatives market in Europe, to join Euronext, allowing the company to significantly expand its geographical scope and its activities. In the same year, the Lisbon Stock Exchange joined Euronext, making the group present in five European countries.
The acquisition of LIFFE placed Euronext at the top of the world's derivatives market—the fastest-growing exchange sector. By 2003, the company had achieved meaningful integration. In 2003, Euronext cash products were integrated onto a single platform (NSC). In 2004, Euronext derivatives products were integrated onto LIFFE CONNECT.
In the meantime, the company worked toward full integration of its member exchanges and their platforms. By 2003, Euronext had merged its clearing and counter-party services, the London Clearing House and Clearnet, into a single entity, LCH Clearnet, which then became the European leader in this sector. The following year, Euronext standardized its trading platforms, establishing NSC, developed by the Paris bourse, as its cash trading platform, and LIFFE Connect for its derivatives. The integration of Euronext's operations, described as "bumpy" and "tedious," was finally completed in 2004.
In 2005, Euronext introduced Alternext as a market segment to help finance small and mid-class companies in the Eurozone. This SME-focused initiative would later evolve into Euronext Growth, demonstrating the company's early understanding that exchanges needed to serve not just blue-chip corporations but the entire ecosystem of European enterprise.
The federation model Théodore established would prove enduring: maintain local presence and regulatory relationships while unifying technology and liquidity. This structure would survive multiple ownership changes and become the template for all future Euronext expansion.
IV. The Transatlantic Gambit: NYSE Merger (2006-2007)
The Bidding War
By 2006, Euronext had established itself as continental Europe's premier exchange group. But the company found itself caught in the crossfire of a global consolidation race. NASDAQ was making aggressive moves toward the London Stock Exchange. Deutsche Börse, having lost out on IX, was hungry for a major deal. And the New York Stock Exchange—the world's most iconic capital markets brand—saw Euronext as the perfect vehicle for its international ambitions.
Contrary to statements that it would not raise its bid, on May 23, 2006, Deutsche Börse unveiled a merger bid for Euronext, valuing the pan-European exchange at €8.6 billion (US$11b), €600 million over NYSE Group's initial bid. Despite this, NYSE Group and Euronext penned a merger agreement, subject to shareholder vote and regulatory approval. The initial regulatory response by SEC chief Christopher Cox was positive, with an expected approval by the end of 2007. Deutsche Börse dropped out of the bidding for Euronext on November 15, 2006, removing the last major hurdle for the NYSE Euronext transaction.
A run-up of NYSE Group's stock price in late 2006 made the offering far more attractive to Euronext's shareholders. On December 19, 2006, Euronext shareholders approved the transaction with 98.2% of the vote.
Creating NYSE Euronext
The NYSE Group and Euronext merger on April 4, 2007, signaled the creation of the world's largest and most liquid exchange group—NYSE Euronext. NYSE Euronext, Inc. was a transatlantic multinational financial services corporation that operated multiple securities exchanges. On April 4, 2007, NYSE Group, Inc. merged with Euronext N.V. to form the first global equities exchange, with its headquarters in Lower Manhattan.
The New York Stock Exchange consummated its $11 billion takeover of Paris-based exchange operator Euronext at ceremonies in the U.S. and Europe. The combination into NYSE Euronext formed the world's biggest stock market, and ushered in a new era for financial markets where securities could be traded on two continents up to 12 hours a day. The merger was a crowning achievement for John Thain, the former president of Goldman Sachs who became chief executive of the NYSE in 2004.
Then-NYSE CEO John Thain, who was to head NYSE Euronext, intended to use the combination to form the world's first global stock market, with continuous trading of stocks and derivatives over a 21-hour time span. The new firm, NYSE Euronext, was headquartered in New York City, with European operations and its trading platform run out of Paris.
As explained by NYSE Group boss John Thain: "A partnership with Euronext fulfils our shared vision of building a truly global marketplace with great breadth of product and geographic reach that will benefit all investors, issuers, and our shareholders and stakeholders."
What Actually Happened
The transatlantic dream proved more complicated in practice. Théodore became deputy CEO of the combined entity, but power resided firmly in New York. The Paris Bourse and its allies in Amsterdam, Brussels, and Lisbon had become distant provinces of the New York Stock Exchange.
In 2006, Euronext and the New York Stock Exchange announced their merger, and Jean-François Théodore became Deputy Chief Executive of the transatlantic NYSE Euronext group. In December 2009, Théodore left the NYSE Euronext group.
In January 2008, NYSE Euronext announced it was acquiring the American Stock Exchange for $260 million in stock. The deal was completed on October 1, 2008, and the exchange was re-branded as the NYSE Amex Equities.
The financial crisis of 2008-2009 consumed management attention, and the ambitious vision of continuous 21-hour trading never materialized. The cultural gap between Wall Street and European exchanges proved wider than anticipated. European regulators watched nervously as American oversight frameworks threatened to spill over into their markets.
The merger delivered scale, but it also raised fundamental questions about European sovereignty over financial infrastructure. Were Europe's capital markets now controlled from New York? The tension between global scale and local autonomy would remain unresolved—until events forced a dramatic restructuring.
V. The Deutsche Börse Saga and Regulatory Reckoning (2008-2012)
The years following the NYSE merger brought repeated attempts at further consolidation—and a definitive regulatory answer about the limits of exchange concentration.
In 2008 and 2009, Deutsche Börse made two unsuccessful attempts to merge with NYSE Euronext. Both attempts did not enter into advanced steps of merger. In 2011, Deutsche Börse and NYSE Euronext confirmed that they were in advanced merger talks. Such a merger would create the largest exchange in history. The deal was approved by shareholders of NYSE Euronext on July 7, 2011, and Deutsche Börse on July 15, 2011, and won antitrust approval from US regulators on December 22, 2011.
The proposed combination would have created a behemoth controlling an overwhelming share of European derivatives trading. The commission rejected the merger on antitrust grounds, saying the combined businesses would dominate Europe's on-exchange derivatives trading with an estimated 93% market share.
On February 1, 2012, the deal was blocked by European Commission on the grounds that the new company would have resulted in a quasi-monopoly in the area of European financial derivatives traded globally on exchanges. Deutsche Börse unsuccessfully appealed this decision.
On February 1, 2012, the European Union blocked the planned merger between NYSE Euronext and Deutsche Börse. The European Commission—the EU's executive body—ruled against the merger because, they said, the combined exchange would control more than 90% of the trade in European derivatives. The European Commission report stated, "The merger between Deutsche Börse and NYSE Euronext would have led to a near-monopoly in European financial derivatives worldwide."
Separately, in December 2012, Intercontinental Exchange announced plans to acquire NYSE Euronext in an $8.2 billion takeover.
The regulatory block delivered a crucial lesson for exchange consolidation: equity markets could consolidate more freely than derivatives. The clearing and settlement of derivatives created systemic risk concentrations that regulators would not tolerate. This insight would shape Euronext's future strategy—and ironically, the regulatory intervention that blocked the Deutsche Börse deal set the stage for Euronext's eventual independence.
VI. The ICE Acquisition and Euronext's Second Birth (2012-2014)
ICE Takes Over
On December 20, 2012, the boards of directors of both Intercontinental Exchange (ICE) and NYSE Euronext approved an $8 billion acquisition of NYSE Euronext.
Under the terms, shareholders of NYSE would receive either $33.12 in cash for each share or 0.2581 IntercontinentalExchange Inc. shares, or a combination of $11.27 in cash per share plus 0.1703 shares of stock. The acquisition was subject to regulator approval, though since the operations of ICE and NYSE had little in common—ICE was largely devoted to trading commodities, as opposed to NYSE's business of trading stocks and securities—the deal was not expected to be blocked. ICE said that after the deal closed it would sell the Euronext portion of the company, including stock exchanges in Amsterdam, Brussels, Lisbon and Paris.
ICE's interest lay squarely in LIFFE—the derivatives franchise Euronext had acquired back in 2001. The continental European cash equities business was, frankly, an afterthought. A spin-off of Euronext was expected since ICE's $11 billion deal to take over NYSE Euronext. The public offering would be a return to independence for Euronext, acquired as part of NYSE's international push in 2007.
The Spinoff Structure
After a complex series of operations, the spinoff occurred on June 20, 2014, through an initial public offering. The former Euronext.LIFFE was retained by ICE and renamed ICE Futures Europe. In order to stabilise Euronext, a consortium of eleven investors decided to invest in the company as "reference shareholders."
On June 24, 2014, Intercontinental Exchange announced the closing of the initial public offering of the ordinary shares of Euronext N.V. Euronext's ordinary shares were listed under the symbol "ENX" on Euronext Paris, Euronext Amsterdam and Euronext Brussels and commenced trading on June 20, 2014. ICE sold 42,248,881 ordinary shares of Euronext in the IPO at €20 per share, 23,352,000 ordinary shares of Euronext to a group of European institutional investors that would replace ICE as reference shareholders at €19.20 per share, and 188,296 ordinary shares to eligible Euronext employees at €16 per share.
In order to stabilize Euronext, a consortium of eleven investors decided to invest in the company. These investors, referred to as "reference shareholders," owned 33.36% of Euronext's capital and had a 3-year lockup period: Euroclear, BNP Paribas, BNP Paribas Fortis, Société Générale, Caisse des Dépôts, BPI France, ABN Amro, ASR, Banco Espirito Santo, Banco BPI, and Belgian holding public company SFPI.
Jeffrey C. Sprecher, Chairman and CEO of Intercontinental Exchange, said: "Our goal from the inception of the acquisition of NYSE Euronext was to establish Euronext as an independent exchange via a public listing. The proceeds will enable us to repay debt, invest for growth and return capital to shareholders. We are pleased to have executed on our plan and are now focused on our strategic initiatives, which include further integrating ICE and Liffe."
The Strategic Reset
Euronext emerged smaller but focused—a pure European play without the LIFFE derivatives franchise. The company's initial market capitalization of just €1.4 billion reflected modest expectations. Euronext's IPO was a resounding success thanks to a combination of a responsible selling shareholder, support from a core group of reference shareholders, a driven and focused management team, and a clear strategy for the group following its separation from ICE. Positioning Euronext as Europe's leading financing centre to support the real economy was on track. The company executed well on cost savings and defended market shares in an ever-increasing competitive landscape.
The reference shareholders model proved crucial: it provided strategic stability through committed long-term investors who understood the importance of European capital markets infrastructure. These weren't just financial investors—they were institutions with deep stakes in the functioning of continental finance.
In retrospect, being "unwanted" by ICE became a gift. Forced independence and European focus allowed the company to chart its own course—and the next decade would prove just how far that course could take it.
VII. The Boujnah Era: Building the European Infrastructure (2015-2020)
New Leadership, New Strategy
In September 2015, following a recommendation by the Nomination and Governance Committee, the Supervisory Board unanimously approved the nomination of Stéphane Boujnah as CEO of Euronext N.V. and Chairman of the Managing Board. Boujnah joined Euronext from Santander Global Banking and Markets where he had held the position of Head of France & Benelux since 2010, and Head of Continental Europe since June 2014. His proven track record as a successful manager of international organisations and his extensive experience of the financial markets made him a highly suitable candidate for the role.
Boujnah's background was unusual for an exchange CEO. From 1997 to 1999, Stéphane Boujnah was adviser to the French Minister for Economy, Finance and Industry, Dominique Strauss-Kahn. He was responsible for innovation policies, privatisations in the technology sector, international investments projects in France and the development of the New Economy. He started his career in 1991 as a business lawyer at Freshfields, focusing on M&A, privatisations and international investments in Eastern Europe. He holds a Master degree and a DEA in Law from La Sorbonne Paris, an LLM from the University of Kent in Canterbury and an MBA from INSEAD.
Boujnah was a member of the Commission pour la Libération de la Croissance Française established by President Nicolas Sarkozy in 2007. He is founder and Vice-President of the French think tank En Temps Réel, where he published "L'inoxydable modèle suédois" in 2003, a book on the Swedish government and economic model.
This combination—investment banker, policy adviser, M&A lawyer, intellectual—gave Boujnah a unique perspective on what Euronext could become. Boujnah joined Euronext in November 2015 as CEO and Chairman of the Managing Board. Since then he has significantly increased the operating performance and diversification of the Group. He has realised an ambitious expansion strategy to establish Euronext as Europe's leading market infrastructure. As a result, Euronext now manages activities across the entire capital markets value chain, operating under a highly scalable and diversified model.
Since Boujnah's renewal as CEO and Chairman of the Managing Board in 2019, Euronext doubled its annual revenue and increased its market capitalisation by 1.5 times. Euronext has a unique track record of integration and operational leverage, achieving more than €180 million of synergies over the course of its strategic plans implemented under Boujnah's management. With the acquisition of Borsa Italiana Group, Boujnah has established Euronext as the largest listing venue in Europe.
The Acquisition Spree
Under Boujnah, Euronext embarked on a disciplined but ambitious acquisition strategy:
On August 14, 2017, Euronext announced the completion of its acquisition of FastMatch, a currency trading platform. On March 27, 2018, Euronext announced the completion of its acquisition of the Irish Stock Exchange, rebranded as Euronext Dublin, to expand its reach into the debt and funds markets. On June 18, 2019, Euronext announced the completion of its acquisition of the Oslo Stock Exchange. On December 5, 2019, Euronext announced that it would acquire 66% of the European power exchange Nord Pool. The acquisition was completed on January 15, 2020.
The Irish Stock Exchange deal demonstrated strategic foresight. On March 27, 2018, Euronext announced the completion of its acquisition of the Irish Stock Exchange, rebranded as Euronext Dublin, to expand its reach into the debt and funds markets. Dublin was positioned as a Brexit contingency—a eurozone venue for companies that might otherwise have listed in London.
Oslo Børs added something entirely new: the Norwegian VPS, a central securities depository. For the first time, Euronext would own post-trade infrastructure, beginning the expansion beyond pure trading.
On April 23, 2020, Euronext announced that it would acquire ca. 70% of the Danish Central Securities Depository, VP Securities. The acquisition was completed on August 4, 2020.
Building the Value Chain
The shift from "exchange" to "market infrastructure" was more than marketing. Boujnah was systematically building capabilities across listing, trading, clearing, settlement, custody, and data. Each acquisition added a piece to the puzzle.
When you look at the post-trade side of the value chain in Europe, it's extremely fragmented. There are several clearing houses supporting our markets, and over 30 national CSDs [Central Securities Depositories]. As a part of our 2024 strategy, we wanted to align this post-trade chain, as we've done on the exchange side.
The rationale was both strategic and economic. Fragmented European markets meant multiple clearing memberships, multiple settlement systems, multiple compliance frameworks—friction that increased costs and reduced liquidity. By consolidating infrastructure, Euronext could offer efficiency while earning fees at multiple points in the value chain.
As 2020 began, Euronext had transformed from a pure-play cash equities exchange into a diversified market infrastructure company operating across six countries. But the biggest deal was yet to come.
VIII. The Borsa Italiana Acquisition: Crown Jewel of European Consolidation (2020-2021)
The Opportunity
In September 2020, regulatory necessity created an extraordinary opportunity. The London Stock Exchange Group (LSEG) had agreed to acquire data provider Refinitiv for $27 billion. European regulators demanded divestiture of Borsa Italiana to approve the deal.
On September 18, 2020, as part of regulatory remedies to see through its $27 billion purchase of data provider Refinitiv, the London Stock Exchange Group entered into exclusive talks to sell the Italian Bourse (formally 100% of London Stock Exchange Group Holdings Italia S.p.A.), situated in Milan, to Euronext. As part of the deal, CDP Equity, 100% owned by Cassa Depositi e Prestiti, would become a significant shareholder in Euronext.
Euronext pulled off a €4.325 billion offer to the London Stock Exchange for the acquisition of Borsa Italiana group, which would count for an important proportion (34%) of the new group's total revenues. The offer, made with the strong support from Cassa Depositi e Prestiti through CDP Equity and Intesa Sanpaolo, beat the competition from Deutsche Börse and the Swiss SIX.
The Strategic Logic
On April 29, 2021, Euronext completed the acquisition of the Borsa Italiana Group for a final consideration of €4,444 million. Stéphane Boujnah stated: "Today marks a new chapter in the history of Euronext and of European capital markets. With the completion of the acquisition of the Borsa Italiana Group, Euronext delivers on its ambition to build the leading pan-European market infrastructure, connecting local economies to global capital markets."
In addition, Euronext increased its business diversification with new capabilities in fixed income trading and clearing, as well as consolidation of a significant CSD. This transaction strengthened Euronext's profile and enhanced its strategic prospects for future growth.
What Borsa Brought
The Borsa Italiana acquisition was transformative on multiple dimensions:
The acquisition of Borsa Italiana also included multiple companies within the Borsa Italiana group that facilitated revenue generation and data processing within the Italian financial markets, including MTS, CC&G, and CSD Monte Titoli.
MTS provided leadership in fixed income trading—the first time Euronext would have meaningful bond market presence. CC&G (Casa di Compensazione & Garanzia) delivered something even more valuable: a multi-asset clearing house that Euronext could scale across Europe. Monte Titoli added another CSD to the growing post-trade network.
The run-rate synergy arising from this acquisition would amount to an additional €60 million pre-tax per annum by year 3, through €45 million of expected cost synergies and €15 million of expected revenue synergies.
The initial synergy target proved conservative. Management upgraded guidance repeatedly as integration progressed better than anticipated.
Integration Excellence
Boujnah told Markets Media: "The integration of Borsa Italiana is proceeding very well and we have three major group ongoing projects. The first is the migration of the core data centre to Bergamo in Italy, which is the physical centre of the exchange where trading and the matching of orders happens. The second project is the migration of the Italian cash and derivatives markets from the London Stock Exchange Group technology to Euronext's proprietary Optiq trading platform during the first semester of 2023. The third migration is the transition of clearing operations from LCH SA in France to Euronext Clearing."
The data centre migration represented a response to Brexit—moving critical infrastructure from the UK back into an EU member state. The location in Bergamo, Italy, symbolized the importance of the Italian market to the enlarged group.
Euronext's expansion has emphasised common technology and post-trade integration. Following prior migrations (Dublin, Oslo Børs, Borsa Italiana) to Optiq and the rollout of Euronext Clearing across seven markets, the group cites improved liquidity and market quality metrics.
IX. Modern Euronext: The Complete Infrastructure Play (2022-2025)
Clearing: The Strategic Cornerstone
The transformation of CC&G into Euronext Clearing represented the culmination of Boujnah's value chain strategy.
This successful migration established Euronext Clearing as the Central Counterparty (CCP) of choice for Euronext's cash markets, which process around 25% of European cash trading. This transformation contributed significantly to building the backbone of the Capital Markets Union in Europe, reducing the fragmentation of European capital markets.
On September 17, 2024, Euronext announced the successful completion of the expansion of Euronext Clearing activities to all Euronext financial derivatives markets. The completion of the clearing migration solidified Euronext's role as a central player in the European financial landscape, positioning Euronext Clearing as the third-largest clearing house in Europe, underscoring its rapid growth and influence in the post-trade space. The expansion to Euronext financial derivatives markets followed Euronext Clearing's successful expansion to Euronext's cash markets in November 2023 and commodity derivatives in July 2024. Euronext Clearing is now positioned as the Central Counterparty for all of Euronext's derivatives markets.
This milestone marked the conclusion of the migration from LCH SA to Euronext Clearing and the end of the contractual relationship with LCH SA. This was the final phase in the European expansion of Euronext Clearing to create Euronext's multi-asset class clearing house. This achievement, realised on schedule in September 2024, marked the last critical achievement in completing Euronext's 'Growth for Impact 2024' strategic plan.
Financial Performance
Euronext revenue reached +4.7% CAGR from 2020 to 2024, above the +3% to +4% targeted. Euronext attained an adjusted EBITDA growth of +6.4% CAGR from 2020 to 2024, above the +5% to +6% targeted.
Trading revenue grew to €559.4 million (+14.2%), driven by record results in fixed income, FX and power trading and solid growth in cash trading revenue. Clearing revenue grew to €144.3 million (+19.0%), powered by the European expansion of Euronext Clearing, dynamic fixed income activity and the strong performance of commodities clearing.
Non-volume related revenue and income represented 58% of total revenue and income (compared to 60% in 2023) and covered 153% of underlying operating expenses. Custody and Settlement revenue grew to €270.5 million (+8.7%), driven by higher assets under custody, dynamic settlement activity and strong growth of value-added services. Advanced Data Services revenue grew to €241.7 million (+7.5%), driven by continued demand for fixed income trading data, power trading data and dynamic retail usage.
On February 3, 2025, Euronext welcomed the decision of S&P to upgrade Euronext from 'BBB+, Positive Outlook' to 'A-, Stable Outlook'. S&P's decision reflected the completion of the integration of the Borsa Italiana Group, the successful expansion of Euronext Clearing, and the continued deleveraging thanks to the Group's strong cash flow generation.
The Athens Acquisition
On November 19, 2025, Euronext announced the success of the voluntary share exchange tender offer for ATHEX, the parent company of ATHEX Group. During the Acceptance Period, which lasted six weeks and ended on November 17, 2025, shareholders lawfully and validly tendered, in aggregate, 42,953,405 ATHEX Shares, corresponding to approximately 74.25% of the voting rights of ATHEX. The minimum number of shares prerequisite of 50% plus one share to be lawfully and validly tendered was satisfied.
ATHEX, founded in 1876 and a survivor of Greece's tumultuous financial history—including the 2015 capital controls that halted trading for five weeks—operates as a near-monopoly in Greek equities and derivatives. Its recent upgrade to "developed market" status by FTSE Russell in 2024 bolstered its appeal, with a market capitalisation exceeding €100 billion. For Euronext, already spanning Paris, Amsterdam, Milan, Oslo, Dublin and Lisbon with a €6.6 trillion market cap footprint, the Athens acquisition extends its reach into southeastern Europe.
Euronext anticipates that integrating ATHEX into its existing exchange platforms will generate cost savings of about €12 million annually through 2028.
Innovate for Growth 2027
On November 7, 2024, Euronext released its new three-year strategic plan, "Innovate for Growth 2027". The plan sets out the Group's ambition to leverage Euronext's presence on the entire capital markets value chain in Europe to accelerate growth through innovation and efficiency. Euronext announced an updated capital allocation policy with a focus on shareholders' returns and strategic flexibility.
The strategy relies on three priorities: (i) accelerate growth in non-volume business, (ii) expand the FICC trading and clearing franchise, and (iii) build upon leadership in trading. ESG will continue to be embedded in all businesses, and the company will scale up its ESG ambition, with a Net Zero commitment to be set by 2027.
Euronext's organic revenue growth is expected to be above 5% on average per year between 2023 and 2027. Adjusted EBITDA growth is expected to be above 5% on average per year between 2023 and 2027. The Group will keep a strong focus on costs and will continue to invest for future growth. The Group will continue to execute external growth opportunities, in line with its investment criteria of ROCE above WACC in years 3 to 5.
By 2027, Euronext will be larger, stronger and more diversified. Leadership will be extended to new activities and asset classes in Europe. The Group will be positioned as the unique and most efficient gateway to European capital markets for listing, trading, clearing, settlement and custody. By 2027, Euronext aims to be the undisputed backbone of the European Savings and Investments Union.
X. Competitive Positioning and Strategic Analysis
The European Exchange Landscape
In the European region, there are multiple stock exchanges among which five are considered major (as having a market cap of over US$1 trillion): Euronext, which is a pan-European, Dutch-domiciled and France-headquartered stock exchange composed of seven market places; London Stock Exchange Group, which is a global stock exchange composed of the London Stock Exchange; Deutsche Börse, which operates Europe's third largest stock exchange, the Frankfurt Stock Exchange/Xetra; SIX Group, which operates Switzerland's major stock exchange and Spain's major exchanges; and Nasdaq Nordic, which is composed of Nordic stock exchanges.
Deutsche Börse is the third-largest stock market in Europe by market cap after Euronext Paris and the London Stock Exchange. On August 23, 2023, Deutsche Börse formed EuroCTP as a joint venture with 13 other bourses, to provide a consolidated tape for the European Union, as part of the Capital Markets Union proposed by the European Commission.
Euronext's main competitors are the London Stock Exchange (LSE), which is highly known but faced challenges after Brexit, and Deutsche Börse, which specializes in derivative products and is a world leader in this domain.
Porter's Five Forces Analysis
Threat of New Entrants (Low): Exchange businesses are protected by enormous barriers to entry. Regulatory approval, technology requirements, and network effects create natural moats. The critical mass of liquidity in established venues is nearly impossible for new entrants to replicate. Alternative trading systems have captured market share at the margins, but core exchange functions remain concentrated.
Bargaining Power of Suppliers (Low to Moderate): Key suppliers include technology vendors and data providers. Euronext has reduced dependency by developing proprietary systems (Optiq) and bringing clearing in-house. However, some vendor relationships—particularly for specialized market data—remain important.
Bargaining Power of Buyers (Moderate): Large institutional investors and market makers can negotiate fee structures and threaten to route orders elsewhere. However, the single liquidity pool model means participants benefit from concentration. The "preferred venue" dynamic in clearing has reduced buyer power in post-trade.
Threat of Substitutes (Low to Moderate): Alternative trading systems (MTFs and dark pools) compete for order flow in equities. However, for listing, clearing, settlement, and custody, there are few genuine substitutes. The comprehensive value chain strategy reduces substitution risk by locking in relationships at multiple points.
Industry Rivalry (Moderate): Competition among major European exchanges is real but disciplined. The blocked Deutsche Börse/NYSE Euronext merger demonstrated regulatory constraints on consolidation. Rivalry now focuses more on product innovation and geographic expansion than on price wars.
Hamilton Helmer's 7 Powers Framework
Scale Economies: Euronext's single trading platform (Optiq) and unified clearing house (Euronext Clearing) create significant scale benefits. Processing additional transactions costs essentially nothing at the margin, while fixed costs are spread across a growing base. The Borsa Italiana integration exemplified this—adding Italian volumes to existing infrastructure delivered substantial operating leverage.
Network Effects: The "liquidity begets liquidity" dynamic is powerful. Issuers want to list where investors trade; investors want to trade where liquidity concentrates. Euronext's single order book across markets creates a self-reinforcing pool. Each acquisition that adds listings strengthens the network for all participants.
Counter-Positioning: Euronext's federal model represents a form of counter-positioning against both American mega-exchanges and fragmented national markets. By maintaining local presence and regulatory relationships while unifying technology, Euronext occupies a position that competitors cannot easily replicate.
Switching Costs: Once companies are listed on an exchange, switching costs are substantial. Relisting requires regulatory filings, investor relations changes, index reconstitution, and operational disruption. For clearing and settlement services, migration costs are even higher due to the integration with back-office systems.
Cornered Resource: Euronext owns several unique assets: the Amsterdam Stock Exchange's 400-year heritage, exclusive licenses to operate regulated markets in multiple jurisdictions, and the largest pool of blue-chip European equities listings. These cannot be duplicated.
Process Power: The company has demonstrated superior integration capabilities across multiple acquisitions—Irish Stock Exchange, Oslo Børs, VP Securities, Borsa Italiana. Each integration was delivered on time and exceeded synergy targets. This repeatable playbook represents organizational knowledge that competitors lack.
Branding: The Euronext brand now encompasses the most prestigious European listing venues: the CAC 40, AEX, MIB, and other national benchmark indices. For companies seeking to raise capital in European markets, the brand carries significant weight.
XI. Investment Considerations: Bull Case and Bear Case
The Bull Case
Complete Value Chain Integration: Euronext now controls the entire capital markets lifecycle in Europe—listing, trading, clearing, settlement, and custody. This vertical integration creates multiple revenue opportunities and reduces dependency on any single business line. As of June 2025, Euronext's regulated exchanges host nearly 1,800 listed issuers with €6.3 trillion in market capitalisation, a strong blue-chip franchise and the largest global centre for debt and fund listings. With a diverse domestic and international client base, Euronext handles 25% of European lit equity trading.
Revenue Durability: Non-volume related revenue and income represented 58% of total revenue and covered 153% of underlying operating expenses. This means the company can cover its operating costs even without any trading revenue—a remarkable defensive position.
Capital Markets Union Tailwind: European policymakers increasingly recognize the need for deeper, more integrated capital markets. Euronext is positioning itself as "the backbone of the European Savings and Investments Union"—politically aligned with regulatory priorities.
Proven M&A Discipline: Every major acquisition has exceeded initial synergy targets. The Borsa Italiana integration—the largest and most complex—was completed ahead of schedule. This track record suggests future deals could similarly outperform.
Geographic Expansion Optionality: With Athens completed, Euronext now operates in eight countries. Additional expansion into Central and Eastern Europe, or deepening of existing markets, provides growth options that don't require aggressive valuations.
The Bear Case
Volume Sensitivity: While non-volume revenue provides stability, trading revenue remains significant. Extended periods of low market volatility would pressure results, as seen during market quiet periods.
Regulatory Risk: Exchanges operate at the pleasure of regulators. Changes to market structure rules, clearing mandates, or cross-border arrangements could affect competitive dynamics. The company operates under multiple regulators across eight jurisdictions, creating compliance complexity.
Technology Disruption: Blockchain, tokenization, and decentralized finance represent long-term technology threats to traditional exchange infrastructure. While Euronext has invested in digital assets capabilities, the threat of disintermediation cannot be dismissed.
Geographic Concentration: Despite the federation across multiple countries, European economic exposure creates concentration risk. A severe European recession would affect trading volumes, listings activity, and custody assets simultaneously.
Integration Execution Risk: The strategy assumes continued successful M&A integration. A future acquisition that goes poorly could destroy value and distract management from organic growth.
Competition from Vertically Integrated Rivals: Deutsche Börse and LSEG also control complete value chains. If they pursue aggressive European expansion or pricing strategies, margin pressure could result.
XII. Key Metrics for Ongoing Monitoring
For investors tracking Euronext's ongoing performance, three KPIs deserve particular attention:
1. Non-Volume Related Revenue as Percentage of Operating Expenses
This metric captures the company's fundamental business model evolution. In 2024, non-volume revenue covered 153% of operating expenses—meaning the company generates a profit before any trading fees. A deterioration in this ratio would signal either cost discipline problems or weakness in recurring revenue streams (custody, data, listing fees). Conversely, continued improvement would demonstrate the durability of the diversified model.
2. Adjusted EBITDA Margin
The company achieved 63.8% adjusted EBITDA margin in Q2 2025. This metric reflects both operating efficiency and pricing power. Sustained margins above 60% would indicate the value chain integration is delivering expected benefits. Compression below 55% would suggest competitive pressures or integration difficulties.
3. Clearing Revenue Growth
As the newest and strategically most important business line, Euronext Clearing's performance signals whether the post-trade expansion is succeeding. Clearing revenue grew to €144.3 million (+19.0%) in 2024, powered by the European expansion of Euronext Clearing. Sustained double-digit growth would validate the strategy; stagnation would raise questions about cross-selling effectiveness.
XIII. Conclusion: From Amsterdam's Canals to Europe's Digital Backbone
The story of Euronext is, in many ways, the story of European financial integration itself. From the world's first stock exchange on the canals of Amsterdam, through the birth of the euro, the transatlantic dreams of NYSE Euronext, the commodities-focused neglect of the ICE years, and the systematic rebuilding under Stéphane Boujnah—the company has survived and ultimately thrived by solving Europe's fundamental capital markets challenge: how to create unified infrastructure while respecting national sovereignty.
The federal model Théodore established in 2000 proved remarkably durable. Local presence and regulatory relationships combined with shared technology and pooled liquidity created a structure that served multiple masters—national governments, pan-European institutions, global investors, and local companies alike.
The dual milestone of CAC 40 entry and the ATHEX acquisition both demonstrate the resilience of the business model and Euronext's pivotal role in shaping European capital markets. "This is not just recognition of what we have achieved, but also a platform for the next decade of growth," Boujnah stated.
Today's Euronext controls the entire capital markets value chain across eight European countries. The completion of Euronext Clearing's expansion means the company now processes trades from listing through settlement—a position no European competitor can match. The non-volume revenue mix provides defensive qualities unusual in exchange businesses.
The challenges ahead are real: technology disruption, regulatory evolution, and periodic market volatility will test the model. But the company has demonstrated—through multiple ownership transitions and countless integration projects—an institutional capability for adaptation that few financial infrastructure companies possess.
Four hundred years after Dutch merchants invented the modern stock market to fund spice trading expeditions, their successors are building something arguably more ambitious: a unified platform for European capital formation that connects local economies to global markets. The voyage continues.
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