Stock exchange operator Euronext is to launch Euronext Fund Service in Paris.
It consists of a simplified and automated subscription/redemption service for investors to invest in funds through their brokers.
Euronext Fund Service will be launched on 15 May 2017, starting with AXA IM, Ecofi Investissements, Natixis AM and OFI AM funds. Other asset managers including Commerzbank and La Francaise Investment Solutions will follow.
Concretely, the service will enable investors will to place orders for a range of international open-end funds through their broker, as they already do for other exchange tradable products. Orders placed will be at net asset value in euros, transferred to the fund agent under the Euronext model.
Fund agents registered with Euronext are BNP Paribas Securities Services, CACEIS, CM-CIC Market Solutions and Société Générale Securities Services.
Euronext Fund Service relies on new technologies developed by fintech companies, in particular robo-advisors seeking automated infrastructure solutions.
Euronext believes this new service will draw millennials to fund investments. The funds admitted to trading on Euronext Fund Service will benefit from enhanced visibility through data flows generated by Euronext.
Euronext will also team up with Morningstar which will allow free access to fund data for selection and comparison on the Euronext website.
Stéphane Boujnah, chairman and CEO of the managing board of Euronext NV, said: “We are delighted to launch this new service, which illustrates our flexibility and ability to meet a range of different demands, and we look forward to welcoming asset managers of all sizes from the very start. Designed in partnership with the financial community, Euronext Fund Service is an innovative offering that addresses asset managers’ needs for more digitalised and automated solutions. It will also help enrich the Euronext community as a whole.”
Euronext has around 1,300 listed issuers whose total market capitlisation amounts to €3.5trn as of end March 2017.