NYSE Euronext Announces Proposed Pan-European Project For SMEs
Following the recommendations of its Strategic Planning Committee for SMEs, NYSE Euronext (NYX) today announced plans to launch a pan-European exchange especially for small and medium-sized companies, developed in consultation with all of the Group’s European markets.
Given the challenges SMEs face in securing financing, NYSE Euronext has decided to take action and is proposing a bold new exchange for Europe.
More specifically, NYSE Euronext’s initiative will:
- Create an exchange dedicated to SMEs, consisting of a new subsidiary and the existing markets operated by NYSE Euronext in Europe. It will bring together companies currently listed in the B and C segments of the regulated markets and companies listed on NYSE Alternext to achieve critical mass (approximately 800 issuers drawn from the four countries in which NYSE Euronext operates in Europe).
- Maintain NYSE Euronext’s existing federal business model.
- Create a subsidiary dedicated to developing the SME market, with its own operating budget and team. This unit will have an open governance structure including a Board of Directors with between 12 and 15 members representing stakeholders in markets operated by NYSE Euronext, plus a Users’ Committee serving in an advisory capacity.
- Assign an annual operating budget of €18 million, revised annually, and a total staff of 50 to the project.
- Make a major investment in prospecting and building relations with new issuers, in particular by hiring dedicated staff and by enhancing and redefining a regional presence.
- Improve liquidity and market attractiveness by adopting a range of concrete measures.
- Reduce listing and transfer fees for SMEs.
- Create a dedicated brand to give the new exchange a strong and recognizable identity.
Given the interdependence of stakeholders at each stage of the business finance chain, it is essential that this project be part of a broader approach backed by a quantified, shared investment.
Dominique Cerutti, President and Deputy CEO of NYSE Euronext, said: “With this ambitious initiative, NYSE Euronext is once again committing to revitalising market financing for SMEs. But our efforts, however significant, are not enough on their own. We are therefore calling on stakeholders throughout the European ecosystem to make this initiative a fundamental priority for their market. We need professional associations to play an active role, and we need support plus concrete and complementary input from issuers, intermediaries and investors. Governments and competent European and national authorities also have an essential role to play in creating a more efficient legislative, regulatory, fiscal and fee framework, above and beyond new infrastructure.”