Euronext, a prominent European capital market infrastructure, has announced a significant development in line with its strategic plan, Innovate for Growth 2027. The company will establish Euronext Securities as the Central Securities Depository (CSD) for handling the settlement of equity trades in Euronext Amsterdam, Brussels, and Paris by the latter half of 2026. This move also involves the transfer of Euronext N.V.’s shares to Euronext Securities.

By designating Euronext Securities as the CSD for these key markets, Euronext aims to address the issue of post-trade fragmentation in Europe, where equity trade settlement currently involves over 30 different CSDs. This consolidation effort is part of Euronext’s broader strategy to enhance the competitiveness of European capital markets and create new avenues for trading and investment on a cross-border scale.

Euronext’s decision to streamline settlement processes aligns with its goal of fortifying the European Investment and Savings Union. It complements the earlier shift of market clearing activities to Euronext Clearing, enabling clients to unify equity trade settlement and custody services under a single CSD. This integrated model promises clients more efficient post-trade operations, improved liquidity, and simplified market access across Europe. Additionally, it facilitates compliance with regulatory changes, particularly in anticipation of Europe’s transition to a T+1 settlement cycle in October 2027.

In a parallel development, Euronext N.V. has transferred its own shares to Euronext Securities, underscoring the benefits that equity issuers can derive from consolidation initiatives. Stéphane Boujnah, the CEO and Chairman of the Managing Board of Euronext, emphasized the strategic significance of this move in enhancing the competitiveness of European capital markets. He highlighted the pivotal role of Euronext in unifying European equity markets, fostering cost reduction, operational efficiency, and enhanced liquidity for clients.

Euronext’s comprehensive approach to centralizing settlement activities through Euronext Securities reflects a proactive stance in addressing market challenges and driving market resilience. By spearheading this consolidation effort, Euronext reaffirms its commitment to promoting efficiency, reducing risks, and establishing a more robust marketplace for stakeholders, including issuers, investors, and financial institutions.

The planned implementation of this integrated model by September 2026, ahead of the broader market transition to T+1 settlement, signals Euronext’s proactive approach in reshaping the European capital market landscape. Through collaboration with clients across its markets, Euronext aims to deliver tangible benefits, including cost savings, streamlined operations, and improved market accessibility, thereby reshaping the future of European capital markets.