Open-End Funds to Trade on Euronext Paris

France has authorized active open-end funds to trade on regulated markets or multilateral trading facilities, and as a result, Euronext Paris is planning to admit active open-end funds for trading on the Net Asset Value (NAV) Trading Facility, an on-exchange forward pricing solution for order execution at NAV.

Euronext says that it is working closely with asset managers and key market participants in France to develop this service, which it plans to launch in the second quarter of 2014. The launch will build on Euronext Amsterdam’s fund service that has been operating since 2007.

“Asset managers in France are continuously seeking new, more operationally efficient and more transparent cross-border distribution networks to gather assets, in order to thrive in an increasingly competitive environment. The Euronext Fund Service will respond to these needs by offering a complementary cross-border distribution network across its markets. The service will offer asset managers additional visibility for their open-end funds and access to a broad base of domestic and international investors through Euronext’s community of over 200 member firms across Europe,” Euronext said in a statement.

Eric Pagniez, deputy chief executive of the French Asset Management Association (AFG), added, “The French Asset Management industry, one of the largest in Europe, welcomes this move: French asset managers will now have the option to strengthen their distribution capacity thanks to this new initiative by Euronext.”