350+ major US and European stocks are now available on Euronext’s retail-focused multilateral trading facility (MTF), the Euronext Global Equity Market, known as Euronext GEM.
US and European stocks open for trading in Euros
In November 2023, Euronext enhanced the stock universe of its Euronext GEM market, which was previously run by Borsa Italiana and known as BIt GEM. Retail investors and brokers can now trade 230+ US stocks and 120+ stocks from Germany, Spain, Finland and Sweden. Trading is in Euros, and is supported by market makers to guarantee liquidity. In addition, investors have the advantage of being able to trade these stocks after hours on the Trading After Hours (TAH) market..
How does an MTF work?
A multilateral trading facility, or MTF, provides trading services just like a regulated stock exchange, but the stocks are admitted to trading on the MTF without any capital-raising activity. Stocks available for trading on Euronext GEM, therefore, have their primary listing in the US, Sweden, or Spain, for example, but are easily available via the Euronext platform and can be traded in Euros.
Designed to support retail flow
Vincent Boquillon, head of equity trading at Euronext, explained that the platform is designed to capture retail flow. “Retail flow represents more than 50% of GEM volumes today, which is exactly how it should be: retail investors are essential to ensuring a healthy and diversified trading flow.”
Keeping costs down for private investors
Trading firms can buy or sell US and European stocks via their direct membership of Euronext GEM, instead of having to ask international brokers to trade these stocks on their behalf on NYSE, Nasdaq, or other US and European exchanges. Skipping one layer of intermediaries can mean lower execution costs for GEM members, which in turn can ultimately benefit end investors. Also, since private investors can trade US stocks in Euros via trading firms that are members of Euronext GEM, they can avoid the currency risk and the commissions related to USD-EUR conversion.
No additional connectivity or market data fees for banks and brokers
Vincent Boquillon expects more banks and brokers to join the growing community of 40+ international members that already trade the Euronext GEM multilateral order book. “Since Euronext GEM is already on the Optiq trading platform, members can use the same connectivity they already have in place for their equity trading on the Euronext markets, and there are no added charges for market data. GEM centralises our offering for trading non-Euronext shares, combining order flow and liquidity from across Euronext members.”
After-hours trading for Euronext GEM - and for Euronext’s most liquid shares
A big pull is that investors can trade US stocks before the US primary markets open, which is normally at 15:30 CET. It is also possible to continue to trade Euronext GEM stocks after the main trading session closes, through the Trading After Hours (TAH) market. This allows trading to continue until 20:30 CET, meaning a greater overlap with the US markets. In addition, the TAH session also now offers trading on over 200 of the most liquid stocks from the Euronext Regulated Markets in Belgium, France, Italy, the Netherlands and Portugal.
A smooth and efficient post-trade set-up
Trades on both the GEM and TAH markets are cleared and settled in Euros by Euronext Clearing and Euronext Securities Milan, keeping the whole trade life cycle simple and efficient. Already clearing the Italian markets, in November Euronext Clearing was expanded to become the default CCP for Euronext Cash Markets.
See more at Euronext Global Equity Market - GEM or contact the Euronext Equities Team at EquitiesTeam@euronext.com