Although the total value of outstanding CP and CDs on the European market in 2002 amounted to approximately €300 billion, a large number of investors in Europe, such as money market funds, are not able to invest more than 10% of their investment portfolio in money market instruments due to the fact there is no regulated market for them. However, they can form part of a regulated market if they are admitted to listing. As a result, professional European investors will be able to include more money market instruments in their investment portfolios.
Issuers whose money market instruments are admitted to listing must comply with the provisions of Euronext's Listing and Issuing Rules, which also apply to bond issuers. Trading will continue to be done on the over-the-counter market and will not be routed via Euronext's trading systems. Listings will apply to entire programmes and, where requested, individual tranches of listed programmes. Details of programmes that have been approved by Euronext Amsterdam will be published in the Euronext Amsterdam Daily Official List in a special new section - Commercial Paper/Certificates of Deposit, Domestic and Foreign.
Hans ten Cate, member of the Rabobank Group's Executive Board, said that Rabobank hopes to increase its investor base with the exchange listing of its CD funding programme. As he explained, "The Rabobank Group has a high credit rating and currently has some €25 billion outstanding in money market instruments. Its high rating makes it attractive to investors in short-term instruments."
According to George Möller, COO of Euronext, "Money market instruments form a very interesting addition to the range of financial instruments listed at Euronext."