Definition of NYSE Euronext
NYSE Euronext was a multinational financial services corporation that managed several securities exchanges, including the New York Stock Exchange (NYSE) and Euronext. Established in 2007 following the merger of NYSE Group, Inc. and Euronext N.V., NYSE Euronext became the first global equity exchange group, providing a marketplace for financial products and services for international investors.
Key Functions:
- Global Trading Services: Facilitated trading in equities, derivatives, and other financial instruments.
- Market Data and Analytics: Provided essential financial information and analytics to traders and investors.
- Listings Services: Supported companies in listing their shares, enabling them to access capital markets.
- Technology Solutions: Offered state-of-the-art trading technology and infrastructure.
History:
In 2013, NYSE Euronext was acquired by Intercontinental Exchange (ICE), leading to the integration of their operations. NYSE Group still operates as a subsidiary under ICE, and Euronext became an independent company after a subsequent spin-off.
Examples
- Equity Trading: A multinational corporation lists its shares on NYSE Euronext, allowing investors from around the world to trade its stock.
- Derivatives Market: A financial institution hedges its exposure to foreign exchange fluctuations by trading derivatives on Euronext.
- Market Data Services: An investment firm purchases market data from NYSE Euronext to inform their trading strategies.
Frequently Asked Questions
What is NYSE Euronext?
NYSE Euronext was a company that operated multiple securities exchanges, including the New York Stock Exchange and Euronext, providing a platform for global trading and investment services.
When was NYSE Euronext established?
NYSE Euronext was established in 2007 following the merger of NYSE Group, Inc. and Euronext N.V.
What happened to NYSE Euronext in 2013?
In 2013, NYSE Euronext was acquired by Intercontinental Exchange (ICE). As part of this acquisition, Euronext was later spun off as a separate company, while the NYSE became a subsidiary of ICE.
What services did NYSE Euronext provide?
NYSE Euronext provided global trading services, market data and analytics, listings services, and technology solutions for financial markets.
How did the merger of NYSE and Euronext impact global markets?
The merger created the first global equity exchange group, enabling more integrated and efficient trading across international markets and offering enhanced services and technology to traders and investors.
Related Terms
- Euronext N.V.: Euronext is a European stock exchange with operations in Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo, and Paris, originally part of NYSE Euronext but now operating independently.
- New York Stock Exchange (NYSE): One of the world’s largest stock exchanges by market capitalization, located in New York City, formerly a component of NYSE Euronext and currently operating as a subsidiary of ICE.
- Intercontinental Exchange (ICE): The company that acquired NYSE Euronext in 2013, a leading operator of global exchanges and clearinghouses.
- Derivatives Market: Financial markets for derivatives trading, which was a significant service provided by NYSE Euronext through Euronext’s platforms.
- Market Data: Information that NYSE Euronext compiled and sold to traders and investors to facilitate informed trading decisions.
Online Resources
Suggested Books for Further Studies
- “The New Stock Market: Law, Economics, and Policy” by Merritt B. Fox, Lawrence Glosten, and Gabriel Rauterberg
- “The Handbook of Electronic Trading” by Joseph Rosen
- “Market Microstructure in Practice” by Charles-Albert Lehalle and Sophie Laruelle
- “Investing: The Last Liberal Art” by Robert G. Hagstrom
- “Trading and Exchanges: Market Microstructure for Practitioners” by Larry Harris
Accounting Basics: “NYSE Euronext” Fundamentals Quiz
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