Why the CEO of an independent Euronext is facing challenges on multiple fronts
IPO prospectuses are frequently gloomy but the one released
by Euronext today rivals a Thomas Hardy novel for its
negativity, albeit without the panache.
Many of the challenges that Euronext faces as an independent
business are shared across the industry, many are unique to its
operations. What is clear is that Dominique Cerutti will have
to innovate and drive efficiencies like never before to realise
the ambitious 5% annual growth rates the company has targeted
in its first three years.
Lines of separation
In its 14-year history, Euronext, itself the product of a
mega-merger of European exchanges, has been acquired twice and
also acquired the London derivatives market Liffe. Each
acquisition, including the initial formation, was beset by
integration challenges and confusing rebrands.
The Euronext that will stand alone from its IPO on June 20
comprises aspects of the group that has been built up over the
past 14 years. It will operate the European cash, derivatives
and commodity exchanges, the London cash market and the
Portuguese national CSD.
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