EURONEXT has just celebrated its 15th anniversary in the ETF sector, having launched its first ETF in January 2001. It's a significant business for the exchange, explains Benjamin Fussien (pictured), Head of ETFs & Funds, at the exchange.
"We have 700 ETFs listed on our market from 19 ETF providers," he says. "In terms of assets under management we have EUR260 billion and in terms of trading for the full year of 2015, between OTC and on-exchange we had EUR157 billion."
Fussien joined EURONEXT in September 2014 and has brought a great deal of energy to the job of reinvigorating this growing part of the business. "It's one of our key businesses within the cash department," he says. "Our first priority is to partner with clients. Clients come first whatever happens, whether they are ETF issuers, authorised participants and marketmakers or all the bank and liquidity providers. We also have a good and constructive relationship with regulators for the five different markets we operate in."
The EURONEXT ETF offering is truly global, covering more than 500 different indices. "I think it's a significant offer in terms of product," Fussien says. "We are competing with strong competitors and we have respect for them, but on our side we have a lot of things to offer. We truly partner with clients, we have a very open and constructive discussion with clients and our first focus is client satisfaction."
The exchange also prides itself on its smooth listing process. "We have the fastest time to market in terms of listing," he says. "You can list an ETF with us within five days, with the possibility of cross listing across our five markets."
The four traditional markets EURONEXT covers are France, Holland, Belgium, Portugal and they are now, in addition, from quarter two 2016, offering ETFs in EURONEXT London.
"With one point of access you can access five different points of access in Europe," Fussien says. "It's very efficient in terms of cost and time saving as we manage everything. We can offer 20 different currencies to ETF issuers and we have a strong statistics team that provides a lot of information to clients. We bring added value to clients with one of the strongest teams in terms of ETFs within the stock exchanges."
Another evolution in recent times has been a new scheme to align listing fees in line with the competition. "The main focus for us is to bring the investors on Euronext the broadest offer in terms of product and this strategy is starting to pay off" he says.
So far in 2016, of the 118 new ETFs that have been listed in Europe, 62 have been on EURONEXT. They also managed to onboard UBS, the fourth largest provider of ETFs in Europe, with 52 ETFs.
"Our clients are happy and they are confident in the reliability of our platform with strong safeguards that the sort of problems seen in the US in terms of liquidity can't happen in our markets. End investors can trade in a fair price on EURONEXT," Fussien says. "It's a unique offering.