2014

Euronext announced today that it is providing a way for international investors with foreign denominated currencies to purchase ETFs priced in euros by converting the exchange rate of up to 20 different currencies so that investors could have a more streamlined experience .

As local exchanges seek to acquire market share in regions outside their domestic locations, the allure of providing clients ease of access can be facilitated through numerous methods of approach, such as the one announced today.

How the Technology Works

Forex Magnates reporters spoke with Pedro Fernandes, Head of European Exchange Traded Products of Euronext, during an email interview regarding the announcement, Mr. Fernandes responded as follows:

FM: How does the technology work?

Pedro Fernandes, Head of European Exchange Traded Products of Euronext

Pedro Fernandes: We will be using the same technology and framework that we currently use. Order and Trade management through UTP/Euronext, Clearing through LCH.Clearnet SA set-up, and settlement on Euroclear Bank.

FM:Is the solution from a 3rd party and if so can you provide who?

Pedro Fernandes: It’s a solution supported by the market infrastructure – Euronext, LCH.Clearnet SA and Euroclear Bank.

FM: Will this be for all 568 ETFs listed on the site, and if so when will it be available?

Pedro Fernandes: Please see: https://etp.euronext.com/etps/etfs/etf-directory

Listed ETFs will be made available on different currencies upon issuer request.

FM: Will the rates reflect in real-time on clients platforms from respective brokers?

Pedro Fernandes: Trade through Settlement occurs in the same currency.

CNY and HKD a First for a US/European Exchange, As per Euronext

As many as 20 different currencies will be supported, including for the first time on a U.S. or European exchange –the Chinese Yuan Renminbi (CNY) and the Hong Kong Dollar (HKD) according to Euronext, the press release also stated that this would be subject to approval of the relevant clearing authorities. The plan is to make it available from Monday February 17, 2014 – less than a month away.

A copy of the press release from NYSE Euronext contained the following list of currency ISO Codes for each supported currency in the new offering: