The project was developed in conjunction with market participants and is a key component of a dynamic financing framework designed especially for SMEs. It will make an active contribution to the range of measures for SMEs recently announced in France by the President, as well as to the various initiatives supporting SMEs prepared in Belgium, The Netherlands and Portugal.
The new entity will cover the current B and C compartments of NYSE Euronext's regulated market, as well as NYSE Alternext in each of the European countries where the group operates—a total of nearly 800 companies. Managed by a subsidiary set up in France for this purpose, it will have its own brand, operating budget and team.
The structure will be headed by a CEO recruited externally. Its governance structure will be open, with a 15-member international board of directors including the CEO, seven qualified external directors and seven directors from NYSE Euronext. Board members will be announced on 23 May and they will focus on subjects of critical importance to SMEs (marketing policy, improvements to the market model, etc.).
In addition to its team of dedicated experts, the subsidiary will have sales teams covering all NYSE Euronext markets; some of these will operate from regional locations where they can make best use of close ties to small and medium-sized companies. Working with local networks and players, their brief is to help SMEs gain access to markets.
Following discussions with market participants, NYSE has committed to a steep rise in resources earmarked for SMEs and will contribute an annual €18 million budget, with part of this going directly to the subsidiary now being set up. A range of promotional offers will be put in place once the new entity has been launched, with a 50% reduction in transfer fees for companies moving from the regulated market to NYSE Alternext, and a 10% reduction in listing fees.
This ambitious project will give NYSE Euronext a truly pan-European market dedicated exclusively to SMEs, with a central orderbook and a transparent market model.
President and Deputy CEO of NYSE Euronext, and Chairman of the Managing Board of Euronext NV Dominique Cerutti said: "Given how difficult it can be for SMEs to secure financing in today's economy, it is essential that we take action—that is both our mission and our firm belief. NYSE Euronext is fully committed to assisting company leaders and all parties prepared to act to strengthen the entrepreneurial network, which makes a key contribution to growth and job creation. Small and mid-size companies, the market as a whole and government authorities can count on their longstanding market operator Euronext to make this innovative project a success and rally everyone to the cause.
In 2012, NYSE Euronext's European markets allowed businesses to raise over €83 billion, including more than €57 billion in France alone. That exemplifies the drive and market quality that we will be harnessing to serve SMEs."
About NYSE Euronext
NYSE Euronext refers to NYSE Euronext and its affiliates and references to NYSE Euronext in this publication include each and any such company as the context dictates. NYSE Euronext, New York Stock Exchange, NYSE MKT, NYSE Alternext, NYSE Arca and NYSE Liffe are registered marks of NYSE Euronext. © 2013, NYSE Euronext – All rights reserved.