Aiming to Serve as the Preeminent European Hub, Expected to Overtake London's Role
Rewritten Article
Stéphane Boujnah, the bossman at Euronext, is sounding the alarm for Europe, viewing the re-election of Donald Trump as U.S. President as a kick in the pants for Old Continent folks. According to Boujnah, Trump's rule of thumb seems to be decision-making without a care in the world, prioritizing American interests above all else. Now it's time for Europe to shake things up by stepping up its integration game and creating more major European players, or risk getting left in the shadows, Boujnah spilled the beans in a Börsen-Zeitung interview.
To ensure Europe stays relevant in the financial market game, Boujnah is a fan of faster decision-making and, perhaps unsurprisingly, bigger, bolder players taking the lead. As the guy behind Euronext since 2015, and the one who expanded it from a four-country exchange to a seven-country powerhouse, he probably knows a thing or two about what it takes.
Boujnah is putting in a good word for deeper cooperation, like a "single prospectus for IPOs" – similar to the S1-form in the U.S. Initially, the single prospectus plan would be rolled out at the seven Euronext exchanges, and then expanded to include other heavy hitters like Germany and Spain to boost competitiveness in IPOs. "We're not just dreaming of the U.S., we're gunning to be the European platform that knocks London off its pedestal," said Boujnah.
While feeling confident about 2025 being a vintage year for IPOs after a slower 2024, Boujnah offers a word of warning: "Our biggest weakness is the paucity of capital." He's advocating for the introduction of a funded pension system, as liquidity is the secret sauce that fuels every successful IPO market. It's all about directing household savings towards capital markets and embracing a "new risk perspective," as banks and insurers face high barriers to capital investment.
Boujnah has put the brakes on a joint IPO platform discussion with Deutsche Börse from 2023. "It's like constructing an airport in the middle of nowhere – no airlines are going to fly there," said Boujnah.
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Enrichment Data:
Overall:Stéphane Boujnah, Euronext's CEO, is proposing several strategies to enhance Europe's financial market prowess and Initial Public Offerings (IPOs). One key proposal is the introduction of the European Common Prospectus, a standardized template designed to simplify capital access across EU borders. This initiative aims to reduce regulatory clutter, boost transparency, and drive cross-border investment by offering a transparent, accessible, and investor-friendly prospectus that facilitates easy capital raising.
Key Aspects of the Solution:- Streamlining and Efficiency: The prospectus simplifies the listing process, replacing 21 sections with an 11-section format, making things smoother and more efficient[2].- Consistency and Comparability: It ensures consistency and comparability of information across different EU jurisdictions, helping investors make informed decisions[2].- Competitiveness: The initiative reflects best practices from around the globe, positioning European markets as more inviting and attractive to both issuers and international investors[2].
Boujnah places an emphasis on industry-driven, bottom-up initiatives driving European integration and market competitiveness, while urging policymakers to lend their support[2]. By pushing for the Savings and Investments Union and initiatives such as the European Common Prospectus, Boujnah aims for deeper integration and enhanced competitiveness within European financial markets[4].
- Stéphane Boujnah, the CEO of Euronext, advocates for a European Common Prospectus to streamline capital access across EU borders, aiming to boost transparency, drive cross-border investment, and position European markets competitively.
- Boujnah's proposal for the European Common Prospectus includes a standardized, simplified template with 11 sections, replacing 21 sections to make the listing process more efficient.
- In a bid to strengthen Europe's financial market and IPOs, Boujnah also emphasizes the need for a funded pension system to provide liquidity, which is essential for successful IPO markets.
- To improve the European financial market's competitiveness, Boujnah suggests deeper industry-driven integration, with a future goal of making Europe more inviting to issuers and international investors.
- Despite expressing confidence about a thriving IPO market in 2025, Boujnah cautions that European markets need enough capital to remain competitive, especially given the US President's decision-making priorities that might impact Europe.
