Euronext shares saw volatile trading on its Friday debut and closed down but its longer term outlook is bright as the new European exchange plans to move into derivatives and establish itself as a credible rival in a rapidly evolving marketplace.
Euronext closed the day on Friday at €19.21 a share, down nearly 4 percent on its opening price of €20, amid volatile trading that saw its price fall sharply to €19.30 immediately after opening before bouncing back to over €19.80.
The shares, offered in Paris, Amsterdam and Brussels, briefly traded over the offer price in mid-morning before selling in the afternoon saw Euronext shares finish their debut at a daily low of €19.21 a share.
The stock continued to trade at around that level after opening on Monday but prospects for the newly listed exchange group are bright according to traders who are supportive of new venues in a market that has been stagnant in recent decades.
Last week the exchange’s management said it will launch in Amsterdam and Brussels next month new options classes based on the firms listed on its stock markets in those cities, before expanding out to other geographies in a later release.
The exchange said the initiative, which it is calling Spotlight Options, will develop new types of options based on the requests of its largest clients, adding that the service already has the backing of liquidity providers and sponsoring brokers.
"This is another initiative from Euronext to diversify and build its derivatives portfolio and offer attractive and innovative investment opportunities for our broad range of retail and institutional investors," said Adam Rose, head of financial derivatives at Euronext.
The exchange said Spotlight Options will boost trading and investment in fledgling companies and newly-listed firms.
Euronext also said last week it has signed a partnership agreement with the Dalian Commodity Exchange, one of the largest Chinese futures markets and a global commodities powerhouse.
Dominique Cerruti, the chief executive of Euronext, said: "Our experience has shown that long-term cooperation can produce strong results and we hope that this agreement will be the start of a new chapter in a long-lasting relationship of working together.
"Our commodities franchise is a fast-growing area within Euronext as we launch new products and build our footprint internationally," Cerruti added.
Liu Xingqiang, chairman of DCE, said, "As one of Europe's leading exchanges, Euronext, with rich experience in derivatives business, technical innovation and global cooperation, can complement DCE in many areas."