Euronext bourse has €2bn war chest to keep pace post-Brexit

Euronext, the pan-European bourse which includes the Amsterdam stock exchange, has a €2bn war chest and plans to double in size in the next few years as Britain leaves the EU.

The company is also looking to diversify its revenue base, Euronext CEO Stephane Boujnah told Bloomberg TV on Saturday.

Euronext, which operates the Amsterdam, Brussels, Lisbon and Paris bourses, is seeking to grow as Brexit forces Europe to redraw its financial landscape. The company has made some financial technology buys, partnered with Algomi in corporate bonds and acquired currency-trading venue FastMatch, Bloomberg said.

‘We are looking at other asset classes [and] platforms that are scalable and that can diversify the revenue breakdown of Euronext, and that’s definitely our priority,’ Boujnah told the company.

Some analysts say major transactions in the industry are still possible after Deutsche Boerse’s planned acquisition of the London Stock Exchange group failed, since the world’s largest exchanges want to consolidate, Bloomberg wrote. Boujnah said he would consider a  combination with any other independent exchange within the EU. But he added ‘Our top priority is diversification of our top line to strengthen our business.’

Cities like Dublin, Frankfurt, Amsterdam and Paris want to tempt in London-based financial companies that could lose access to Europe after Brexit, but Boujnah said financial centres will be spread across places with different assets.

Separately, on Monday NOS reported that a row is brewing after an open letter from a group of European parliamentarians puts them on a collision course with Britain over the future rights of EU citizens in the UK after Brexit.