Despite difficult market circumstances, trading in Dutch blue chips and mid-caps on the Amsterdam market remained stable following the introduction of Euronextâ€™s cross-border trading system. Turnover in continuously traded small caps doubled, while turnover in small caps traded in auctions rose by 4%.
The average spread (difference between buy and sell prices) for Dutch shares narrowed by between 19% and 40%, leading immediately to lower costs for all investors. Mid-caps and small caps traded with a liquidity provider had significantly tighter spreads than shares traded without liquidity providers.
This information was revealed during an initial analysis conducted by Euronext following the introduction of Euronextâ€™s cross-border trading system at the Amsterdam market in October 2001, when the exchanges of Amsterdam, Brussels and Paris were united on a single trading platform based on NSC technology.
Investors and traders are expected to reap the full benefits of the new system after Euronextâ€™s clearing and settlement systems are also integrated.
The full presentation of the analysis is available at request.
Euronext, the first pan-European exchange, operates the stock and derivatives markets of Amsterdam, Brussels, Lisbon and Paris as well as Euronext.Liffe, the London derivatives exchange. As at 31 March 2002, 1,561 companies were listed on Euronextâ€™s regulated markets, representing a total market capitalisation of â‚¬ 2,201 billion. During the first quarter of 2002, 181 million options and futures were traded on Euronextâ€™s derivatives markets.