Euronext’s single order book could cut post-trade costs for buy-side

NYSE Euronext today launched a Single Order Book in Europe, which unites trading, clearing and settlement across the group’s exchanges in France, Belgium and the Netherlands.

The new unified order book will make it easier for investors in these markets to effect cross-border transactions, according to Roland Bellegarde, group executive vice president and head of European execution at NYSE Euronext. “Traders can access and trade securities from other countries as if they were domestic securities,” he told the TRADEnews.com. “As of today, we have put the multi-listed French, Dutch and Belgian securities on a single order book and harmonised the rules and corporate actions.”

Before the launch of the Single Order Book, cross-border transactions were complicated because of the different ownership rules in the three countries. In France, for example, ownership technically began once an investor had committed to buy a stock. In the Netherlands, however, ownership commenced upon settlement – usually three days after the trade took place.