EuroNext forges stock exchange powerhouse

The Paris, Amsterdam and Brussels bourses have merged to create the world's largest electronic stock exchange.

The bourse, to be called EuroNext, will operate a single clearing and settlement system as well as use the ParisBourse NSC system for cash equity trading. The ParisBourse NSC trading system is already employed by 17 exchanges, including Lisbon and Brussels.

Jean François Theodore, CEO of EuroNext, said: "We are creating one company with a single exchange and a single system. We will integrate all the systems as soon as we have approval for the new company from the European Commission."

Theodore said he hoped to have approval by September or October.

EuroNext will join forces with French company ATOS to build the software backbone.

Theodore said: "It means there is only one system to develop and maintain from the same IT provider, and from this the cost savings are huge. There will be a single membership, orderbook and rulebook with rules written by the financial regulators."

However, he was unwilling to specify the cost savings.

"It is not that I do not want to answer the question but that I can only give a complete and scientific answer once the business plan has been completed," he said.

However, the Paris, Amsterdam and Brussels bourses will still operate under local licences until all international finance laws are unified, said Theodore. He claimed that only then will the three bourses relinquish their licences in favour of the European stock exchange.