By Egidio Onesti.

The bond market, traditionally known for its stability, is undergoing a significant transformation. This change is driven by the rapid adoption of technology and the evolving regulatory landscape. The bond market landscape is evolving, with Algorithmic trading gaining considerable momentum, creating  opportunities but also presenting new challenges. This article explores Euronext’s innovative response to these emerging market dynamics.

Over the past ten years, the European bond market has undergone significant transformations driven by technological advancements and the increasing use of algorithmic trading. Recent events have confirmed the growing impact of electronic and algorithmic trading on market dynamics, influencing liquidity, efficiency, and the overall structure of the bond market.

Among the most recent developments, it is worth highlighting the publication of the European Stability Mechanism’s (ESM) report “Electronic trading – a boost to ESM bond market resilience” in November 2024. The report strongly endorses electronic trading in bond markets, stating that the evolution of electronic markets supports market efficiency by increasing secondary market liquidity and improving the efficiency of primary markets.

"These advantages enable the ESM to issue bonds more effectively, in support of its mission to uphold financial stability in the euro area."

Indeed, ESM data on €1.2 trillion in transactions involving its securities, show that the share of electronic trading has risen significantly. Value has risen from 40% to 60% over the past decade, while number of trades has increased from 55% to 80%.

Figure 1 - A diagram illustrating ESM and SFSF bond operations - Source [1]

This transformation is clearly illustrated by the chart in Figure 1, which shows MES and EFSF bond transactions over nearly a decade. Blue represents electronic trading, yellow represents voice trading, and the size of the circle indicates the transaction size.

Even more noteworthy is that electronic trading is no longer limited to smaller transactions; high-value trades exceeding €50 million are now routinely executed electronically.

Even more surprising, however, was the result of the analysis of electronic trading volumes during periods of extreme bond market volatility, such as the critical phases caused by the COVID-19 pandemic, the Federal Reserve's interest rate hikes in 2002, or the turmoil triggered by the collapse of Silicon Valley Bank in 2023.

In instances of great uncertainty and instability, electronic trading volumes dropped by up to 10% on days when bond market volatility reached the 99th percentile. However, volumes returned to normal within a few days, highlighting the stabilising effect of electronic trading during market stress.

The transformation of the corporate bond market has been more significant still. After decades of inertia, the share of trading volumes on electronic platforms grew substantially after the pandemic. In fact, following the pandemic, many companies increased bond issuance to cope with economic uncertainty, leading to record-high issuance volumes.

The number of credit market participants grew, the number of transactions increased, and more and more trades were handled electronically, though initially, they were smaller transactions. A contributing factor was the increase in the speed of technology, paired with a simultaneous fall in technology costs. Additionally, the introduction of young traders into the market, the increasing collection of data and analytics, and the development of pricing strategies fuelling further trading strategies, ETF arbitrage, and portfolio trading all played a role in this shift in market dynamics.

Bloomberg’s acquisition of the most widely followed bond indices, and their dissemination via its terminals further accelerated this trend. This evolution created undeniable benefits for investors, cementing the shift as irreversible.

Figure 2 – Percentage of electronic bond trading (%) - Source: Coalition Greenwich

The chart shown in Figure 2 illustrates the US bond market’s transition toward electronic trading, highlighting its varied impact across different segments based on the characteristics of the securities. Both the investment-grade and high-yield segments have seen an increase in electronic trading penetration. Notably, even less liquid and more fragmented markets, such as the high-yield segment, have experienced an expansion in electronic trading. This suggests that technologies and algorithms are becoming increasingly sophisticated, enabling greater adoption even for more complex instruments and less liquid, fragmented markets.

The spread of algorithmic trading, alongside major disruptive events, such as the "flash crash" of 6 May 6 2010 − when the US stock market suffered a sudden collapse – has created unprecedented challenges for regulators. In Europe, the implementation of MiFID II in 2018 introduced stringent rules, requiring greater transparency, rigorous algorithm testing, and detailed transaction records. Companies today must now ensure that their algorithmic trading systems comply with regulations, guarantee operational continuity, and operate securely by conducting thorough risk and transparency checks in their operations. Once again, technology has become a key tool in regulatory compliance. Both regulators and companies have started developing advanced monitoring and analysis systems that help detect and prevent abusive, suspicious, or irregular market behaviours in real time, thereby ensuring market integrity.

In the "MiFID II/MiFIR review report on Algorithmic Trading," published in September 2021, ESMA acknowledged the overall positive feedback from stakeholders of the MiFID II framework for algorithmic trading, finding no fundamental issues. It concluded that the existing regulatory framework has effectively met its objectives. However, ESMA identified specific areas for improvement, particularly regarding Regulatory Technical Standard 6 (RTS 6), which outlines the organisational requirements for investment firms engaged in algorithmic trading.

ESMA proposed enhancements to the organisational requirements established in RTS 6, including:

• Improving testing and deployment protocols for trading algorithms;
• Implementing robust risk controls, such as a "kill switch" functionality to promptly stop malfunctioning algorithms;
• Mandating comprehensive self-assessments to ensure that firms' systems and controls are effective and up-to-date.

The proposed recommendations aim to simplify and enhance the existing framework, ensuring that it remains strong and adaptable to evolving market dynamics. These insights have been presented to the European Commission for consideration in future legislative initiatives, reaffirming ESMA’s commitment to maintaining a fair, transparent, and secure trading environment within the EU.

Euronext's approach to algorithmic trading

The rise of algorithmic trading has intensified competition among market participants. To remain competitive, financial institutions have needed to significantly increase investments in advanced technological infrastructures and low-latency systems. These investments not only enable faster trade execution, but also allow real-time responses to market fluctuations, thereby improving operational efficiency.

In this evolving landscape, Euronext’s ultra-low latency trading solution, Traderpath, exemplifies how technology can transform market interactions by providing a modular suite of multi-market and multi-asset services for professional trading.

Within this Euronext solution, algorithmic trading functionalities are delivered through the Algopath module, which enables the implementation of sophisticated trading, quoting, and pricing strategies. Algopath is an open, high-performance, low-latency, and scalable algorithmic environment. It offers access to pre-integrated standard algorithmic strategies, along with an intuitive user interface for quickly and easily building and testing proprietary algorithmic models.

Algopath stands out for its technological and commercial neutrality, as it is designed to integrate seamlessly with any third-party trading platform. To meet market demands that require an extreme focus on latency, Algopath has leveraged all available technologies in a synergistic manner to achieve ultra-low latencies on conventional hardware.

Figure 3: Technologies used by Traderpath to reduce latency in ultra-low latency systems – Source: Euronext

However, to fully exploit the opportunities arising from achieving extremely low latencies, the ideal topological placement of ultra-low latency solutions is as close as possible to the core of trading and market data, meaning colocation with the market itself. This ensures the fastest possible access by eliminating all potential latencies introduced by the network.

When considering Euronext services, colocation within the Bergamo infrastructure offers additional benefits to its users, including:

• Reduction of propagation delay: fewer components for packets to pass through;
• Reduction of transmission delay: physical proximity to matching engines and market data infrastructure;
• Reduction of processing delay: significantly fewer components involved in packet processing.

These benefits translate into clear functional advantages, such as improved algorithmic trading performance, increased likelihood of accessing available liquidity, the ability to react more quickly to market changes, and the elimination of network capacity constraints.

Focusing on bond markets, it is important to note that in May 2024, MTS − the largest European market for supranational and government bonds − successfully migrated its Data Centre to the Aruba Global Cloud Data Centre in Bergamo. This synergy between Traderpath, Euronext Colocation, and MTS positions the European exchange at the highest level of competitiveness in providing solutions for algorithmic trading in European bond markets.

Having trading strategies co-located with the cash market is not always enough to complete bond market operations effectively. The need for synchronised, high-speed operation across multiple markets requires algorithms to be co-located in multiple trading venues. For example, it is common to trade simultaneously on a cash market like Euronext MTS in Bergamo and the Eurex futures market in Frankfurt to hedge risks through derivatives trading.

To meet this requirement, Traderpath's technology has developed a high-performance cache distributed across a network of installations, allowing algorithms to always use co-located data. As a result, no data is transferred between different geographic trading venues − only signals − significantly increasing the efficiency of the entire distributed system.

Euronext's approach to MiFID-RTS 6

Within the regulatory framework established by MiFID II, Regulatory Technical Standard 6 (RTS 6) plays a crucial role in preventing and managing disorderly market scenarios. MiFID II was designed to strengthen market integrity and mitigate systemic risks, particularly those associated with algorithmic trading. Through RTS 6, MiFID II specifies the regulatory obligations that investment firms must meet to ensure their algorithmic trading strategies function correctly, even under stressed market conditions and do not create or contribute to disorderly market conditions.

A "disorderly" market is characterised by behaviours that disrupt the natural balance of supply and demand, causing instability. This can result not only from technological malfunctions but also from poorly designed algorithms; or an algorithm’s inability to respond adequately to exceptional or stressful market conditions.

To mitigate these risks, RTS 6 requires investment firms to establish and implement clear methodologies for developing, testing, and validating their trading algorithms. Tests must be conducted in dedicated environments, separate from production environments, to avoid interference with real markets (Article 7). These environments may be internal or one provided by a trading venue or vendor.

Testing systems must be capable of simulating real market conditions, both stable and disorderly. This allows for evaluating the algorithm’s behaviour in adverse events such as drastic price movements, excessive volatility, or limited liquidity.

Additionally, firms are required to conduct periodic validation of their algorithmic strategies and related systems. This validation must include a performance review under both orderly and disorderly market conditions, along with a report demonstrating regulatory compliance.

Through these measures, RTS 6 aims to ensure that algorithms are robust and ready to react to unexpected situations so that markets maintain their integrity, avoiding episodes of high volatility or manipulation. This, in turn, helps investors maintain confidence in financial markets even during periods of turbulence and ensures that algorithmic trading − now an essential element of financial markets − is not considered a risk factor.

To assist investment firms in meeting the requirements of RTS 6, Euronext has developed Regpath, an integrated solution that provides a comprehensive framework for testing and validating trading algorithms.

Figure 4 - Regpath high-level architecture view – Source: Euronext

In accordance with the RTS 6 guidelines for investment firms engaged in algorithmic trading, Regpath integrates the bank's existing algorithmic trading solution with an independent, production-like ecosystem that allows for testing and validating algorithms on different trading venues. Regpath offers flexible integration, functioning both as a standalone system that connects to an organisation's internal or third-party trading platforms, and as a module within the Euronext trading suite. This versatility adapts to various operational setups, ensuring that companies can adopt the solution without having to completely overhaul their existing systems.

Distributed both on-premises and as a SaaS managed by Euronext Technology Services, the solution leverages Euronext's multi-asset trading technology to provide an independent means for executing test scenarios, helping companies refine their algorithm development processes and risk controls.

The platform supports testing across multiple asset classes, allowing companies to evaluate their trading algorithms independently of the methodologies used for their development. This ensures impartial evaluation and compliance with regulatory standards, as required by RTS 6. By emulating the protocols of different trading venues, Regpath enables the trading platform to interact as if it were connected to real markets. This feature facilitates realistic test scenarios, crucial for assessing algorithm performance under diverse market conditions.

Furthermore, Regpath creates a completely abstract environment where different market participant behaviours can be simulated, generating disordered market conditions. This capability allows users to configure market emulators, manage test scenarios that simulate both orderly and disorderly market conditions, and generate reports to demonstrate algorithm resilience and compliance − Table 1 lists the available scenarios for bonds. This is done in total independence from the trading system, allowing algorithms to be tested within their target platforms, ensuring compatibility, transparency, and adherence to regulatory standards.

Table 1 - Test scenarios available in Regpath for Bonds - Source: Euronext

References:

_{[1]        The ESM electronic bond trading - Robin Wigglesworth, December 2024
www.ft.com/content/78851a71-c3be-40cb-91ca-95dd9f5a1e0b}

_{[2]        Credit trading finally exits the Dark Ages, April 2023
www.ft.com/content/8d30cdd3-cd5d-44c4-8ef2-b83ba62df295}

_{[3]        ESMA - Article 17 Algorithmic trading
www.esma.europa.eu/publications-and-data/interactive-single-rulebook/mi…}

_{[4]        Final report Benchmarks RTS
www.esma.europa.eu/document/final-reportbenchmarksrts}

_{[5]        MiFID II Review Report, 2021
www.esma.europa.eu/sites/default/files/library/esma70-156-4572_mifid_ii… algorithmic_trading.pdf}

_{[6]         Algorithmic trading: discover Algorithmicpath | Euronext
www.euronext.com/en/technology/trading-solutions/algorithmicpath-for-tr…}

_{[7]        Euronext Data Center
www.euronext.com/en/technology/euronext-data-centre}

_{[8]        Regpath | Euronext
www.euronext.com/en/technology/trading-solutions/regpath}

As part of its plan to address market fragmentation and deliver a unified European CSD solution for issuance, settlement and custody, Euronext has taken a major step towards streamlining post-trade operations across Europe by announcing the consolidation of the settlement of equity trades and Exchange-Traded Funds (ETFs) in its Amsterdam, Brussels, and Paris markets under Euronext Securities. As of September 2026, these markets will join those already supported by Euronext Securities in Lisbon, Milan, and Oslo. This initiative aligns with Euronext’s commitment to improving market efficiency and advancing the European Savings and Investment Union.

A key milestone achieved

As a listed company, Euronext N.V. changed the issuing CSD of its own to Euronext Securities Milan in March this year, marking a significant milestone in the overall transition. This move demonstrates Euronext’s confidence in its model and provides a proven blueprint for further issuer migrations. It also strengthens Euronext Securities Milan’s position as a European Issuer CSD. 

Benefits for market participants

The consolidation of settlement under Euronext Securities Milan brings several advantages for market participants:

• Increased trading and investment opportunities by simplifying cross-border transactions, in particular for retail investors
• Reduced post-trade costs through a single CSD covering multiple markets
• Streamlined market access with a single CSD membership across key European markets, not only for settlement but also to safekeeping purposes, thanks to its ability to support asset servicing requirement for French, Belgian and Dutch securities.
• Enhanced liquidity and operational efficiency by centralising settlement activities
• Easier adaptation to regulatory changes, particularly ahead of the planned transition to T+1 settlement in October 2027.

Next steps in the transition

The execution phase has now begun. In the coming months Euronext Securities will:

• Engage with clients through market-wide discussions to ensure readiness and alignment
• Deliver technical specifications, client documentation and test plans over the course of Q2
• Begin the transition for those issuers who have already decided to move their shares and finalise agreements with issuer agents

This initiative marks a decisive step in strengthening European capital markets, reducing fragmentation, and enhancing competitiveness on a global scale. By consolidating issuance, settlement and custody, Euronext is delivering a more integrated and efficient marketplace for issuers, investors, and financial institutions.

Author: Jerome Blais
Head European Expansion, Euronext Securities

As the financial industry prepares for the transition to a T+1 settlement cycle, significant changes are on the horizon for corporate events processing. The European Securities and Markets Authority (ESMA) has recommended that this transition take effect by 11 October 2027, marking a fundamental change in how transactions are settled across European markets.  

Leading the initiative to analyse the impacts of T+1 on corporate events and to provide recommendations aimed at enhancing compliance with international standards is the Corporate Events Group (CEG).    

The CEG operates under the governance of the Advisory Group on Market Infrastructure for Securities and Collateral (AMI-SeCo), a European Central Bank (ECB) forum that brings together central banks, financial market infrastructures, and market participants to foster harmonisation and integration of post-trade services in Europe.  

What is changing with T+1?

The move to T+1 reduces the time between the execution of a trade and its final settlement. Traditionally, European markets have operated on a T+2 cycle, where settlement occurs two business days after a trade is executed.  With T+1, settlement will occur in just one business day, aiming to:  

• enhance market efficiency
• reduce counterparty risk
• improve liquidity

To accommodate the T+1 settlement cycle, several key changes are required in the processing of corporate events. These changes are designed to ensure that key dates align with the new requirements, processes are automated to enhance efficiency, and compliance gaps with European corporate event standards are addressed.   

Aligning key dates

One of the primary adjustments involves the alignment of key dates for various corporate events.  Key events such as distributions, mandatory reorganisations and voluntary reorganisations will need to conform to the shortened settlement cycle.  

For distributions, payment dates must be adjusted to ensure timely settlement and disbursement of funds. Mandatory reorganisations, such as mergers and acquisitions, will require changes to processing timelines to accommodate the shorter settlement cycle. Similarly, voluntary reorganisations, which involve shareholder elections, must synchronise election deadlines and execution dates with T+1.  

Streamlining processes through automation and standardisation

Automation also plays a crucial role in the transition to T+1, offering a means to streamline workflows and reduce manual intervention. Two areas of focus are buyer protection instructions and market claims. Automating workflows for buyer protection instructions will facilitate the submission and processing of these instructions, ensuring that they are handled accurately and on time.   Market claims, which arise from discrepancies in corporate actions, will also benefit from automation, reducing the need for manual processing and enhancing overall efficiency.   

To support these automated processes, the adoption of ISO 20022 messaging is essential. This standardised messaging format enables seamless communication and processing, ensuring that all parties involved in corporate events are on the same page and can execute transactions smoothly.  

Meeting European corporate event standards

Compliance with European corporate event standards is another critical aspect of the transition to T+1. Stakeholders must identify and resolve compliance gaps to meet the new standards and ensure readiness for the T+1 settlement cycle. This involves engaging with market participants, including issuers, custodians and investors, to collaborate on the necessary changes and ensure adherence to the new requirements.  

Learning from the US experience

As Europe prepares for its transition to T+1, valuable lessons can be learned from the US market, which has already shifted to T+1, making the switch on 28 May 2024. The US approach provides insights into the challenges and opportunities associated with the transition, offering a roadmap for European markets to follow.  

The transition to T+1 settlement is more than just a regulatory requirement; it is an opportunity to transform corporate events processing for the better. By aligning key dates, automating processes, and ensuring compliance, the industry can enhance efficiency, reduce risks, and improve liquidity. To ensure a smooth and successful transition, Euronext Securities will continue to collaborate and engage with stakeholders to ensure that market participants’ needs are met, paving the way for a more efficient, competitive, and resilient European financial ecosystem.  

 

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Euronext Securities is actively participating in technical working groups and contributing to the Industry Steering Committee as part of the new governance structure for the T+1 settlement cycle in the European Union. 

This initiative has been established by the European Post Trade Forum (EPTF) and is supported by regulators, market infrastructures, and industry associations such as ECSDA:

• Alessio Mottola – Co-lead of the Corporate Actions Working Group
• Thomas Metier – Co-lead of the Settlement Efficiency Working Group
• Chiara Rossetti – Co-lead of the Trading Working Group

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Author: Alessio Mottola 
CEO, Euronext Securities Milan and co-leader of the T+1 settlement cycle Corporate Events workstream in the European Union

 

For more information on ESMA and the T+1 Governance Structure please see: https://www.esma.europa.eu/esmas-activities/markets-and-infrastructure/…

In October 2024, Euronext acquired Acupay and its sister company, BondCom, integrating them into the Euronext Securities family. The companies’ expertise in identifying investors for tax relief, tax compliance and liability management aligns with Euronext Securities' ambition to become the preferred CSD for European capital markets.

A legacy of innovation

Acupay and BondCom both trace their origins to a firm founded in New York in 1986. Acupay specialises in technology-driven solutions for global tax relief at source, tax reclaim services, and tax compliance on cross-border bonds. BondCom is a global leader in bondholder initiatives, including consent solicitations, tender and exchange offers, and complex restructurings.

BondCom was established in the mid-1990s to enhance bondholder communication, a crucial aspect of liability management. Over the past two decades, it has helped issuers in 51 countries engage with bondholders across over 21,000 ISINs, representing US $1.8 trillion in bonds. 

Acupay emerged in 2005 to address Spain’s new tax compliance requirements, rapidly expanding into a leading global tax compliance and reclaim agent. To date, it has processed over US $346 billion in cross-border securities, serving 720 custodian banks and 1.1 million investors across 180 countries. 

The combined expertise of Acupay and BondCom played a pivotal role in Greece’s historic US $270 billion sovereign debt restructuring in 2012. 

Proximity to CSDs

In 2010, Acupay partnered with the Italian CSD, the predecessor of Euronext Securities Milan, to develop an innovative bond structure, enabling Italian issuers to access cross-border capital markets more efficiently. 

The collaboration continued in 2016, when Acupay developed the TPS solution for the Italian CSD streamlining tax processing through real-time transaction management, tax computation, and documentation handling. This innovation helped Euronext Securities expand its services and attract non-resident intermediaries.

Advancing tax services at Euronext Securities

A key objective in Euronext’s Innovate for Growth 2027 strategy is to position Euronext Securities as the CSD of choice for European capital markets.  Supporting investors, custodians, and issuers with harmonized tax services is fundamental to achieving this ambition.  Acupay, with BondCom, will play a key role, bringing advanced technology, robust operational capabilities, and deep market expertise.

Expanding tax services for investors, custodians, and issuers

Euronext Securities already offers a broad range of tax solutions, including:

• Annual and monthly tax reporting
• FATCA and CRS reporting
• Financial transaction tax
• Tax intelligence and advisory services

Meanwhile, Acupay specialises in technology providing broad solutions related to:

• global tax relief at source
• international tax reclaim services
• tax compliance on cross-border bonds

Together, these services enable seamless market access for issuers while simplifying tax processes for custodians and investors.

The five pillars of Euronext Securities’ tax strategy

Euronext Securities’ new tax strategy has been developed collaboratively by the CSDs and Acupay teams. It is built on five key pillars that will drive the expansion and enhancement of tax services:

1. CSD convergence – modernising legacy systems and unifying the tax product portfolio across markets via common platforms
2. European Expansion – developing the necessary tax services to support issuance and trading from other Euronext markets, Belgium, France, and the Netherlands
3. Global market access – replicating the success of Italy’s Yankee bond and ADR programmes by creating new cross-border tax solutions for issuers
4. Legislative & market alignment – adapting to regulatory changes, such as the EU’s FASTER Directive, to improve withholding tax procedures while ensuring compliance and service enhancement
5. Tax relief for investors – integrating the first four pillars to streamline cross-border tax relief and recovery, ensuring investors who use Euronext Securities for the custody of their equities, bonds, and ETFs receive their full entitlements efficiently

These five pillars reinforce Euronext Securities’ commitment to harmonising tax services across Europe. The goal is to continue streamlining back-office tax processes, removing barriers that investors encounter when accessing European capital markets.

By combining the expertise and innovative technology of Acupay and BondCom with its existing established products, Euronext Securities will be able to redefine tax services in European capital markets to remove barriers, enhance investor confidence, and drive sustainable growth for issuers, custodians and investors.

Authors:
Inessa Collier, Business Development Lead
Stef Lambersy, CEO, Acupay and BondCom
Kristine Bastøe, CEO, Euronext Securities Oslo and Head of ES Services, Products

Join us for an exclusive interview with DNB's Head of Issuer & Investor Services Nicolai Christensen, who shares his journey and expertise in the Norwegian securities market. With extensive experience in the industry, he offers a unique perspective on the challenges and opportunities, including harmonisation, cybersecurity, and the potential of digital assets. Discover how his team is shaping the future of post-trade services and learn about the unexpected lessons he's uncovered in the financial world.

Tell us a bit about yourself and your role at DNB

My name is Nicolai Christensen and I am the Head of Issuer & Investor Services at DNB. I have been with DNB since 1998, except for a three-year period when I worked at Verdipapirsentralen (now known as Euronext Securities Oslo). This experience has given me a deep understanding of the industry and a strong familiarity with Euronext Securities Oslo and many of its employees.

In my current role, I lead a team that acts as the bridge between issuers and Euronext Securities Oslo in our capacity as Issuer/Paying Agent/Issuer Account Operator, as well as a bridge between investors and Euronext Securities Oslo in our capacity as Investor Account Operator. We assist issuers in registering with the CSD, handle dividend distributions, organise and facilitate digital and traditional general meetings, manage employee share savings plans, provide technical support for all types of corporate events and act as a speaking partner for issuers and their legal advisors.

Our team delivers a wide range of services to participants in the Norwegian securities market, and DNB holds a significant market share in this area. We are working closely with various parts of DNB to distribute the service from Euronext Securities Oslo to the Norwegian market.

We also provide subject matter expertise to Euronext on major projects and initiatives such as Convergence, the Common Corporate Action Platform, amongst other initiatives. My team consists of approximately 30 highly skilled individuals with extensive knowledge of the infrastructure of the Norwegian securities market.

On a personal note, I own and live on a farm outside Oslo. I enjoy skiing, hunting, working out and traveling. I’m married and we have a son who has been an active ski jumper for many years.

What do you see as the biggest opportunity and challenge that needs to be addressed in the post-trade industry?

The post-trade industry is at a pivotal juncture, presenting both significant opportunities and challenges.

One critical area is harmonisation. It is important to note that harmonisation does not equate to consolidation. The primary focus for CSDs in the Nordics should be aligning with EU standards rather than exploring mergers and acquisitions. 

T2S and T+1 will be here shortly. It’s crucial that the Norwegian infrastructure can support this transition to remain a relevant registry/listing venue.

Enhancing CSD's integration with tax authorities to obtain relief-at-source and efficient, integrated tax reporting is another significant opportunity. The implementation of the FASTER Directive will be a key step in this direction.

Cybersecurity and resilience are paramount. Ensuring the safety and security of assets against cyber threats is a top priority.

While the Nordics have not yet seen a significant push towards digital assets, this represents an opportunity. 

Additionally, continuous simplification and streamlining of processes and procedures are vital for cost-effective operations. This includes leveraging system solutions and artificial intelligence (AI) to enhance efficiency. Furthermore, it is essential to remain responsive and agile in seizing business opportunities and developing new services and products.

What’s the most unexpected lesson you’ve learned or myth you’ve debunked by working in the financial industry?

When I first entered the financial industry, I believed that the infrastructure of the securities market was straightforward. However, the longer I have worked in this field, the more I have come to realise the immense complexity involved.

The infrastructure is a sophisticated network that requires seamless coordination and integration. It involves numerous processes and systems that must work together efficiently to ensure the smooth functioning of securities markets. This complexity is further compounded by the differences between various securities markets, each with its own unique set of rules and practices.

As I have gained more experience, I have come to appreciate the intricate nature of this infrastructure, and the continuous efforts required to maintain and improve it. This realisation has made me particularly excited about the initiatives Euronext is currently working on to standardise and harmonise processes across different securities markets whilst securing the integrity of the local markets.

The Euronext Securities CSD Convergence Programme will deliver a unified client experience, leveraging fully harmonised services supported by a state-of-the-art common platform across the four Euronext Securities CSDs (Copenhagen, Milan, Oslo and Porto). This six-year programme is a key pillar of the Euronext strategic plan Innovate for Growth 2027. 

Benefits for clients

• Seamless, harmonised services: Say goodbye to fragmented post-trade processes and enjoy a cohesive, state-of-the-art platform
• Cost efficiency: Reduced fragmentation means lower associated costs for everyone
• Future-ready infrastructure: Our scalable, robust system is designed to adapt effortlessly to future market evolutions. 

Timing and approach

The new platform for all CSDs will be designed, developed and tested by 2026. Euronext Securities Copenhagen will migrate to the new platform by the end of 2027. The remaining three CSDs will follow by 2030.

The business requirements have now been completed, and development of the platform has begun. 

This is a key strategic project for Euronext and it is led by a strong and efficient governance team. Over 150 Euronext employees have been working daily on this initiative for the past year, and it will continue to be top priority.

Involving market participants at every step

To ensure that the CSD Convergence Programme meets the evolving needs of market participants, a clear client engagement system has been put in place, with representation from both cross-border clients, and local clients from each of the four CSDs. 

The client engagement approach is based on three streams:

• The Client Executive Design Group kicked off in October 2024. This group aims to discuss the strategic direction of the harmonisation project and align on the progress of the programme, ensure that the project design is aligned with the strategic perspective of market leaders, incorporate stakeholder feedback into the strategy, and manage cross-market issues.

• The Global Reference Group held its first meeting in early December 2025. The aim of this group is to deep dive into service documentation across the CSD locations and ensure alignment on the implementation of services, and migration steps.  Its aim is also to promote best practices and international standards while addressing market-specific needs to support harmonised service development. 

• The Local Market Groups aim to tackle market readiness and any local needs, previously validated in Global Reference Groups. Local Market Group meetings will start soon, in line with the release of the first Service Description Documents.

Roll-out of the common corporate actions service

One of the key foundations of the CSD Convergence Programme is the implementation of a common corporate actions service across Euronext Securities. The new service will allow users to manage their corporate actions across all the Euronext CSDs on a single effective and user-friendly platform, delivering an efficient, automated and harmonised client experience.

Common corporate actions service Phase 1 (fixed income securities in Copenhagen and Porto)

• Porto: Phase 1 is completed
• Copenhagen: Phase 1 is nearly completed, and is awaiting the activation of reversals, plus market claims and transformations. Discussions are ongoing with the Danish market to determine the activation date. 

Phase 2 (all asset classes, all four Euronext Securities CSDs)

• Target go-live dates:
  • Porto (all asset classes) – 24 November 2025
  • Copenhagen (all asset classes ) – 24 November 2025
  • Milan (all asset classes ) – 23 February 2026
  • Oslo (fixed income) – 2 March 2026
  • Oslo (all asset classes ) – 6 July 2026

Phase 2 client readiness: 

Market participants in Copenhagen have taken part in a Euronext Securities client roadshow on the implementation of the common corporate actions service for all asset classes. Similar presentations are planned for Milan, Oslo and Porto.  

Some clients in Copenhagen and Oslo have asked for amendments to the schedule, and Copenhagen clients have raised several points to be addressed regarding proprietary message formats. Euronext Securities continues to maintain close dialogue with clients, including bilateral and reference group meetings, to address any queries raised by the market.

Next steps for the common corporate actions service

In the coming months, clients can expect client testing to begin for Phase 2, once Euronext Securities has completed internal development and integration testing, as well as internal functional testing. A detailed test handbook will be communicated to market participants to facilitate the testing process. 

Euronext Securities will continue to keep market participants updated on the latest progress in this key project for the post-trade marketplace, which is another step towards delivering a best-in-class, harmonised client experience across Europe for Euronext Securities’ customers, tackling the challenges of market fragmentation. 

Author: Marie Thomas
Euronext Securities Convergence Program Executive

Euronext has signed a binding agreement to acquire Nasdaq’s Nordic power futures business. This acquisition, pending regulatory approvals, is a key milestone in Euronext’s commitment to providing a sustainable and secure market infrastructure for power derivatives trading in the Nordic and Baltic regions.

It aligns with Euronext and Nord Pool's ‘Innovate for Growth 2027’ strategic initiative to expand in European power futures trading and hedging, with the new Euronext Nord Pool Power Futures market.     

Nasdaq-Euronext clearing agreement: power derivatives transfer in 2026

As part of the agreement, open positions in Nasdaq’s Nordic power derivatives, currently held by Nasdaq Clearing, will - with the approval of the members - be transferred to Euronext Clearing in the first half of 2026.   

Trading of power futures will be operated from Euronext Amsterdam and cleared via Euronext Clearing.

The Nasdaq Nordic Power Futures business will be become part of the new Euronext Nord Pool Power Futures market.

Introducing the new Euronext Nord Pool Power Futures market

In August 2024, Euronext and Nord Pool announced that they will launch a dedicated Nordic and Baltic power derivatives market.    

The Euronext Nord Pool Power Futures market will leverage Euronext’s state-of-the-art trading platform, Optiq^® and Euronext Clearing’s risk model and clearing services, to provide a long-standing, liquid and sustainable market infrastructure for secure power futures trading in the Nordic and Baltic regions, built on a strong Nordic foundation.           

The Euronext Nord Pool Power Futures market will offer trading of cash-settled futures for all maturities on System Price and EPADs (Electricity Price Area Differentials), with underlying spot indices provided by Nord Pool.

Building a sustainable and liquid power derivatives market

This initiative accelerates Euronext’s ambitions to strengthen power futures in the Nordic and Baltic regions. By harnessing its expertise in trading, hedging, clearing and risk management, Euronext aims to deliver a competitive and attractive offering for market participants.