An analysis of trading costs ranks Euronext Paris as the world's second least expensive market, immediately behind the New York Stock Exchange. Brussels ranks fourth and Amsterdam sixth. All three partners offer trading costs lower than 30 basis points.
Euronext Paris is also the stock exchange which have the best market impact in the world. Market impact is the difference between the price at which a stock trade is executed and the average of that’s stock’s high, low, opening and closing prices during the day.
The survey is based on data collected from more than 150 large institutions in 42 countries, representing over 1500 brokerages and 800 investment managers operating on cash markets. Euronext is the first pan-European stock exchange, created by the merger of the Paris, Amsterdam and Brussels markets on September 22, 2000. It will use a single trading system (NSC) as of the second quarter of 2001, and move to a single clearing system (Clearing 21) in the second half of the year, with Euroclear handling clearing and settlement.
Technical integration and concentration of liquidity across the three member markets will generate savings of around EUR 50 million for intermediaries.
NB: In the Elkins/McSherry survey, average execution costs per order reflect three components: market impact, calculated by comparing the price at which trades are executed with the average of the daily opening, high, low and closing prices for each stock; commissions; and miscellaneous fees.
