The market will be divided into three main segments: top stocks, next economy, mid and small caps. All stocks listed on EURONEXT can qualify for these segments regardless of nationality.
EURONEXT will operate a market segment especially designed for companies in the "next economy". The companies belonging to the Next Economy segment will mainly be defined by their sector -IT, telecom, electronics, media (broadcasting and internet), e-business, biotechnology and medical equipment. To be admitted to the Next Economy segment, all companies must be traded on a continuous basis. Besides the standard admission criteria, they will also have to meet additional transparancy criteria such as reporting quarterly and in English, using international accounting standards. Next Economy blue chips will automatically be included in this segment.
Companies belonging to other sectors than the Next Economy ones will have the opportunity to join a high quality mid and small cap segment, M-Prime, when they fulfill the same additional trading and transparancy criteria in terms of financial disclosure and investor relations.
Each of the segments will be represented by an index: the EURONEXT 100 for blue chips, the NEXT150 for large caps immediately below the EURONEXT 100 and the NEXT ECONOMY index for growth stocks. An M-Prime is also planned. The EURONEXT100 will include the top 100 EURONEXT blue chips in terms of market capitalization and trading volume ignoring sectoral criteria.
EURONEXT will use the FTSE sector classification, which is already in use in Amsterdam and Brussels, as well in London, Madrid, Hong-Kong, Luxembourg, etc.
This new family of indices will complement the existing national indices which will remain as national benchmarks. Both ParisBourse SA and Amsterdam Exchanges will keep their respective partnership with STOXX Limited and FTSE International Limited, the companies which calculate and disseminate the STOXX and EUROTOP index families.
In order to guarantee the efficiency and liquidity of all market segments, EURONEXT has chosen trading rules flexible enough to be adapted to the liquidity profile of products traded. Stocks will be traded either on a continuous basis or with daily auctions, depending on their liquidity and according to the European Alliance market model. Issuers will be in a position to commit a specialist providing enough liquidity to be traded on a continuous basis.
EURONEXT is the new European exchange created by the merger between the exchanges of Amsterdam, Brussels and Paris. Announced in March 2000, it represents 1400 listed companies for a total market capitalisation of EUR 2400 billion.
