The Euronext Fund Service will allow institutional and retail investors to place subscription and redemption orders through a broker in a more automated, simplified and cost-effective manner.
It is intended to meet the industry’s need for easier straight-through processing access to funds, and to boost the visibility of funds.
According to Euronext, it will also allow clients to place orders for a wider range of international funds, as they are already able to do with other exchange-tradable products.
The service will launch on 15 May with a handful of fund managers including AXA Investment Management and Natixis Asset Management. Additional asset managers are expected to join in the following weeks.
Stéphane Boujnah, chair and CEO of the managing board of Euronext, 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.”
Currently, registered fund agents for the service are BNP Paribas Securities Services, CACEIS, CM-CIC Market Solutions, and Societe Generale Securities Services (SGSS)
SGSS suggested that the service is part of a drive to raise the profile of French funds, and will contribute to the market’s efficiency and promote it within the industry.
Mathilde Guérin, head of product engineering at SGSS, said: “We are convinced of the importance of these initiatives and actively support innovative changes which highlight both the expertise available on the Paris market and the capacity to adapt its infrastructures in response to market expectations.”
She added: “It is also an opportunity to support our asset manager clients in their commercial development through the diversification of their distribution and collection channels.”