Euronext chief executive Stephane Boujnah has said the
exchange operator will keep its eyes peeled for other
acquisitions if it does not succeed in acquiring the French
clearing arm of the London Stock Exchange Group.
The European exchange group agreed to buy the
Paris-based LCH Clearnet SA for €510
million ($538 million) in January to pave the way for the
merger between Deutsche Boerse and the London Stock
Approval for the merger is pending with the European
Commission, which recently delayed its decision deadline from
March to April.
"If the merger is not completed, we will pursue other
alternatives to offer the best clearing service to clients.
Irrespective of Clearnet, we continue to screen for possible
new acquisitions," said Stephane Boujnah, chairman and chief
executive officer of Euronext.
Boujnah’s comments came during an investor call
about Euronext’s full year results for 2016. The
exchange operator reported a 4.3% decrease in revenue for the
year to €496.4 million ($523.5 million).
Derivatives trading on the exchange’s platforms
decreased by 9.8% in 2016 compared to 2015 to €40.1
million. According to Euronext, the decline was due to low
Trading in index products also declined by 9.8% and trading
in equity options decreased by 5.2% to 222,942 lots.
Consistent with the trend in derivatives trading, clearing
revenue decreased by 7.6% to €48 million in 2016.
"2017 will be a critical year for our industry landscape. We
will remain focused on executing our Agility for Growth
strategy and maximising opportunities that may arise, as we did
with the agreement to potentially acquire LCH.Clearnet SA,"
Last Monday, Euronext reported the average daily volume of
its equity index derivatives contracts last month was also
down 25.9% on January 2016.
Trading in single stock derivatives fell 18.3% and the
average in commodity derivatives trading was down a quarter on
the same month last year.
Euronext also announced the
launch of a new post-trade solution, Euronext Chequers, this
The system forms part of the
stock market operator's 'Agility for Growth' blueprint and
will provide risk analytics, inventory
management and a collateral transformation platform.
It will be rolled out in stages throughout 2017, supporting commodities, fixed
income and equities.
"The new service meets
increasing participant demands for collateral upgrade
regulatory constraints relating to capital and margin
requirements," Lee Hodgkinson, chief
executive of Euronext London and head of markets and global
sales, said in a statement.