Mondo Visione Worldwide Financial Markets Intelligence

FTSE Mondo Visione Exchanges Index:

Euronext Amsterdam Starts Euronext Trading System With 24 Liquidity Providers

Date 23/10/2001

On 29 October 2001, the Euronext Amsterdam exchange will change over to the Euronext Market Model, which uses NSC trade technology. This is an important step towards the creation of Europe's biggest stock market, one that will feature not only a unified trading system, but also a single market model and a single set of rules. The system of liquidity providers (LPs), some of which will be active in more than one market segment, comes into effect on 29 October.

Equities

Twelve financial institutions will be responsible for enhancing the liquidity of the share market.

Dutch listed companies that are included in the Euronext 100 Index, such as Royal Dutch and Philips, cannot use the services of an LP.

107 of the exchange's other listed companies have contracted one or more LPs to promote the tradability of their shares. In addition, 28 companies that reported fewer than ten transactions a day over the past year have been included in the continuous trading segment, but because they have come to an arrangement with an LP.

In total, 169 domestic and foreign listed companies will be traded continuously.

Other companies that had less then 5000 transactions (double counted) on the central order book over the past year but have not engaged the services of an LP to increase their liquidity will be traded twice a day via the auction system.

In total, 33 domestic listed companies will be traded in auction.

Other products

Fourteen financial institutions will be responsible for enhancing the liquidity of the investment funds, two in convertible bonds, six in the tracker segment, two in bonds and eight in warrants.