Trading

Order Execution

Listing on NYSE Euronext's Regulated Market means that your shares benefit from the most efficient market model. By trading your shares on our markets, banks enjoy the advantages of rapid execution, the best pool of liquidity, the security of a regulated market and strong settlement services. Our trading platform allows for ultra-fast order round trip times of less than 2 microseconds, making it one of the leading platforms in Europe and worldwide, offering unmatched visibility on the size of the order book (ten best limits).

Two main types of IT development have enhanced our trading systems in recent months:

  • Those aimed at reducing the order execution time.
  • Those aimed at improving the capacity to absorb increasingly large order flows.

Thanks to continuous improvements in the system’s performance, in terms of its capacity to absorb trading volumes, liquidity, investor access and reduced costs for clients, is able to our trading platform break records on a regular basis. These developments address market changes and meet the needs of our clients.

The Universal Trading Platform is a multi-market, multi-geography and multi-regulation exchange platform for all NYSE Euronext European markets. The platform has been developed to eventually replace all current trading systems within NYSE Euronext, for both cash and derivatives markets, in Europe and in the U.S., and is already in place for NYSE Euronext’s European cash markets. Incorporating best practices from across NYSE Euronext’s matching engines (NSC, LIFFE CONNECT, Arca and NYSE), the Universal Trading Platform is a unified, enhanced platform, offering a new industry standard through its enriched technical and functional features.

Liquidity

NYSE Euronext strives constantly to improve the efficiency of its model and the liquidity of its markets for the benefit of market participants. The liquidity of a security, and – on a larger scale – a market, is the ease with which an investor can trade on the market. This ease manifests itself in terms of price and execution time. Liquidity is assessed in three ways:

  • market tightness for a security or for a market as a whole
  • market depth (quantity present on best limits)
  • frequency of trades (order execution time)

The NYSE Euronext central order book offers unrivalled liquidity, with best limits for the most liquid equites refreshed within the second. Recently, prices for a number of equites have been extended from two to three decimal points on 5/1000 or 1/1000 (x.005 or x.001). This allows for more refined prices and thus reduces intraday volatility, as well as increasing liquidity by targeting new market participants.

Secure Market

The combined expertise of our staff ensures that our clients’ transactions are carried out correctly and helps to deal with any crisis that may arise concerning their market or their shares.

The Market Surveillance team ensures that transactions are executed in compliance with regulations, and is authorized to interrupt trading of certain equites temporarily, in close collaboration with the French securities regulator, Autorité des Marchés Financiers (AMF). It also offers Iclients technical support. In view of the harmonization of trading rules for all Euronext® markets (Belgium, France, The Netherlands, Portugal and the UK), transactions are executed in accordance with the same regulatory framework.

Universal Trading Platform

Using state-of-the-art technology, the Universal Trading Platform, connects investors across our markets, concentrating liquidity and order flow thereby improving market efficiency and leading to a lower cost of capital for our issuers.

The Universal Trading Platform is composed of four main components, supported by NYSE Technologies:

  • Trading Engine – the cross-market core of the platform which provides a rich function set for cash and derivatives markets and enables multiple market models to be configured for whole markets or individual product groups. Designed for ultra-high resiliency within and between data centers, it also provides the ultra-low latency.
  • Common Customer Gateway – provides clients with multi-format order entry and access to multiple trading platforms. It is physically located in NYSE Euronext data centers.
  • Market Data Distribution – allows for the efficient and flexible creation of new market data products and ultra-low-latency dissemination of information.
  • Secure Financial Transaction Infrastructure (SFTI®) – the high performance network backbone which enables clients to have access to all NYSE Euronext services through a highly reliable, resilient, low-latency network infrastructure.