NYSE Euronext is continuing initiatives in support of the Deferred Settlement Service (Service de Règlement Différé or SRD), broadening its scope with new additions to the list of eligible securities. From 26 May 2010, all shares traded continuously on NYSE Euronext in Paris will be eligible provided average daily trading amounts to at least €100,000. This will add 93 new stocks compared to the existing list of 140.
The 93 newly eligible stocks will be admitted to the “long-only” segment of the service, which means that, unlike those eligible for the standard service, they cannot be traded on NYSE Euronext’s centralised securities borrowing and lending market. Investors can nonetheless benefit from the advantages of the deferred settlement service in accordance with the conditions set by their financial intermediaries.
Following the extension of the Deferred Settlement Service to all ETFs listed in Paris a little over two months ago, this new initiative illustrates the continuing commitment of NYSE Euronext to the visibility and liquidity of companies listed on its markets, with particular attention to small and medium-sized companies. This extension offers new opportunities to investors wishing to invest with leverage in a secure and regulated market environment.
In the months ahead, NYSE Euronext will be pursuing further evolutions in order to enhance the appeal of its markets and related services, by the same token better meeting the needs of issuers, investors and financial intermediaries.
Alicia Suminski, Head of Business Development, European Cash Markets for NYSE Euronext, comments: “Since its launch ten years ago, the Deferred Settlement Service has won steadily increasing favour with investors, in particular private investors, who can engage in leveraged positions on a wide range of stocks within the secure framework of a regulated market. Its extension to additional stocks via the “long-only” segment makes for added appeal with new investment opportunities.”
Marc Lefèvre, NYSE Euronext's Head of Issuer Coverage and Head of Cash and Listing, France, adds: “The companies newly eligible for the Deferred Settlement Service will benefit from increased visibility and liquidity to back their development. Extension of the service reflects our commitment to support for growth and to offer effective responses to the needs of companies, particularly SMEs, listed on our markets.”
Emmanuel de Fournoux, Director, Market Infrastructure and Prudential Regulation, with France's financial markets association AMAFI, comments: "We fully support NYSE Euronext's initiative extending the scope of the Deferred Settlement Service to additional stocks. Over the past ten years this service has proven its worth, enabling intermediaries to offer secure, regulated access to leveraged investment in stocks listed on NYSE Euronext in Paris."