NDS will be business, member and customer oriented:
- Business oriented in order to improve existing business and to develop the possibility of screen trading specifically for Euronext Amsterdam;
- Member and customer oriented by minimising costs and the impact of migration as much as possible and progressing in the most efficient and transparent way.
After consultation with the members, this electronic environment is planned to become the platform to which Belgian options and futures and French options will migrate.
Once the system has been fully developed, Amsterdam's open outcry system will migrate gradually to SWITCH. SWITCH is the current trading system for derivatives in Amsterdam.
At the same time, NSC-Version FuturesR (VF) will be enhanced as planned to handle existing products. NSC-VF is the current NSC version for future trading in France and in CME, Montreal, Sao Paulo, Singapore, Warsaw and ADX. In a second phase, the consolidated systems will form the next generation futures and options trading system, and will be called: Next Derivatives System (NDS).
With this as a basis, the development of NDS will go in 4 steps:
Step 1
Euronext will develop the newest version of SWITCH by the summer of 2001 to make screen-based trading in equity options possible at Euronext Amsterdam.
Euronext Amsterdam will start migrating gradually its equity-options trading from floor to screen in the summer of 2001.
Step 2
The SWITCH and the NSC-HUB architecture will be integrated so that all NSC users can access SWITCH and also that SWITCH users can gain access to the Euronext products that are not traded on SWITCH. Migration efforts for members will be minimized and users will benefit from the most up to date technology.
This will be done by implementing a harmonised architecture for all Euronext's IT systems which will take the best from both systems, and by also making this available to the cash market. This work is planned for completion by the end of 2001, allowing for the integration of all Euronext derivatives products.
Step 3
Once access has been harmonised, the Belgian options and futures and the French options will, after consultation with the members, migrate to Switch . Euronext will make sure that all present and more functionalities, that are market relevant, will be properly incorporated in NDS.
Step 4
Euronext will implement NDS - which will be an integrated solution based on the convergence of existing functionalities thus minimizing migration effects for all members. This system will be functionally rich, user friendly and in the best interests of both Euronext's market participants and alliances with other exchanges. It will be available in 2002.
