Euronext: NextTrack - Number One In Rapidly Expanding European Tracker Market In First Year

Euronext, the first pan-European exchange, has today published a research document analysing the development of its NextTrack market for trackers (Exchange Traded Funds), since its launch on 9 January 2001. The research confirms NextTrack's market leadership in this rapidly expanding market.

During its first year, NextTrack has listed 50 trackers with a combined market capitalisation of Euro 4.4 billion covering 43 of the leading geographical and sector indices. Average daily turnover increased to Euro 89 million in December 2001, representing 46% of the European tracker market.

NextTrack offers members and issuers the following advantages:

• Access to the broadest range of trackers in Europe targeting all types of investors
• Access to a significant pool of liquidity provided by leading international banks
• A cost-efficient marketplace supported by Euronext's integrated trading, clearing and settlement infrastructure
• Supportive regulatory framework backed by a dedicated NextTrack marketing programme
• Euronext's commitment to market development and innovation

NextTrack was created in response to demand from the European market for access to this flexible and cost-efficient investment vehicle. In less than 10 years the tracker has established itself in the United States as a useful and increasingly popular investment tool for index tracking. The relatively young European market for trackers is catching up quickly with the US market. 2001 was a turning point in this respect, with strong growth seen on the different European trading platforms for trackers in terms of number of listings, turnover and market capitalisation.

The performance of NextTrack during its first year of operation is a reflection of Euronext's strategy of developing new and innovative products to meet the changing demands of the European financial market. Consistent with this, Euronext is looking at ways to develop the market both in terms of attracting greater liquidity as well as launching new products. Since the beginning of 2002, Credit Lyonnais Asset Management has launched new trackers based on S&P Euro and S&P Europe 350 indices. Euronext will also open NextTrack Brussels with the launch, in the near future, of a tracker on the Bel 20 by Lyxor AM - pending CBF approval.

Commenting on the success of NextTrack Jean-François Théodore, Chairman of Euronext, said: "It is a just over a year since Euronext launched its NextTrack tracker segment. In the face of strong competition in the European market, Euronext has demonstrated its innovative strengths and ability to build a highly effective tracker marketplace. By December 2001, Euronext had become the leading European market in terms of product offer, with 50 listed trackers; market capitalisation, with a total of Euro 4.4 billion; and trading, with 46% of daily turnover in December. Euronext is well placed to build on this position in the future."