LONDON (Reuters) – Pan-European financial market operator Euronext said on Thursday it had resolved technical issues that halted trading in index derivatives for nearly four hours earlier today.
Euronext, which manages the Paris, Milan and Amsterdam stock markets among others, said derivative contracts on previous indices had been suspended, although trading in other areas was not affected and proceeded normally.
The latest glitch in index derivatives – which allow holders to buy contracts at predetermined prices – comes at a sensitive time for the market operator, who controls nearly a quarter of stock trading flows in Europe after its successful acquisition of Borsa Italiana last year. .
This is the second such outage this year, in addition to a more widespread shutdown in October 2020 when an interruption in derivatives and spot trading from Dublin to Paris forced traders to sit on the sidelines. for hours.
Euronext said the cause of the outage, which began shortly before 07:00 GMT, had been resolved and the process of trading and post-trading in other segments was proceeding normally. He did not specify the cause of the disturbance.
When blackouts hit US markets, investors can seamlessly migrate their trades to other exchanges, but Europe does not have a back-up system in place and the issue has become more urgent as the exchanges across Europe have embarked on a wave of consolidation. Euronext manages six major stock markets in the region.
While stock trading can also be done on other platforms such as Cboe Europe, Aquis, and Turquoise, traders typically use Euronext as their benchmark market.
Unlike spot trades, which were hardly affected by Thursday’s disruption, the outages are slightly different in the derivatives market, where there is less competition between trading venues.
Usually, derivative contracts are traded on a single exchange, but more and more other traders are also vying for a piece of the pie. Cboe Europe, the largest operator of alternative sites on the continent, plans to launch a European equity derivatives exchange in September.
Cboe declined to comment.
In an article published in May, Cboe Europe and Aquis Exchange proposed an industry-wide plan to address major cash market outages, which would require them to handle much of the process after a problem arises.
Reporting by Sudip Kar-Gupta and Saikat Chatterjee in London; edited by Raissa Kasolowsky and Pravin Char