Jul 17 2013 | 6:00 AM

The new IBO (Initial Bond Offer) developed by NYSE Euronext is off to a very promising start. Launched in 2012, this bond offer is dedicated to SMEs, both listed and privately held, to allow them to turn to institutional investors and the general public for financing via a public bond offer. This new format requires no covenants for the issuer, which is a key advantage in the current economic environment and a positive argument for some companies.

Three initial bond issues have already been completed by companies listed on NYSE Euronext and NYSE Alternext – AgroGénération, Capelli and Homair – which raised between €10 and €15 million for terms of five to six years. The interest rates offered to investors range from 6.5% to 8%. In June 2013, real estate property developer Realites was the first non listed company to launch an IBO. The results of this bond issue will be communicated before the summer.

Issuers all highlighted how this market financing would contribute to...

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Jul 17 2013 | 6:00 AM

The payment of stock dividends is a widespread practice this year on NYSE Euronext’s European markets, with benefits for both companies and their shareholders. Traditionally popular in Amsterdam, stock dividends have gradually extended over the past four or five years to NYSE Euronext’s other European markets.

“This practice offers several advantages for listed companies. First, it allows them to conserve their cash resources and capital. Issuing new shares also serves to develop the free float and adds liquidity. For shareholders the operation is generally well received and strengthens their loyalty to the company. Lastly, it enables companies to offer arbitration tools that are valued by shareholders and investors,” explains François Houssin, Head of Client Coverage France, NYSE Euronext.

The French company Dassault Systèmes is one of the issuers that paid out a stock dividend for the first time this year. “Our shareholders could choose to receive their...

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Jul 17 2013 | 6:00 AM

NYSE Euronext officially announced the launch of EnterNext, the new pan-European marketplace dedicated to SMEs, last 23 May. This new subsidiary aims to promote the use of the financial markets by SMEs with market capitalization of less than one billion euros either privately owned or already listed on the regulated market of NYSE Euronext and on NYSE Alternext...

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Jan 23 2013 | 9:20 AM

On 20 December 2012, Intercontinental Exchange (ICE) and NYSE Euronext announced a definitive agreement for ICE to acquire NYSE Euronext in a stock and cash transaction. The acquisition combines two leading exchange groups to create a premier global exchange operator diversified across markets including agricultural and energy commodities, credit derivatives, equities and equity derivatives, foreign exchange and interest rates ( read press release here ). The deal is expected to close in the second half 2013.

ICE intends to explore an initial public offering of Euronext as a Continental European-based entity following the closing of the acquisition, if market conditions and European policy makers support the offering.

This operation would make sense for the European exchange ecosystem. “While the derivatives market is global, market structures for equity and bonds tend to be regional. We need...

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