1. Common features
European exchanges have played an important role in the history of the formation of the international
stock market. Currently, the leading international exchanges are located in Great Britain, France, the Netherlands and Germany.
European exchanges are the historical center of international exchange activity. The first buildings of commodity and
stock exchanges were built in Europe.
The Amsterdam
Stock Exchange is one of the oldest exchanges in the world, which is still operating today.
Almost every European country has a stock or commodity exchange. There are more than 70 exchanges of various levels from regional to global.
International exchange platforms include EUREX, EURONEXT, LIFFE, LSE, LME, etc.
The
volume of transactions concluded on European exchanges in the last two years indicates a reduction in the number of transactions.
If we consider European exchange trading by types of derivative contracts, we can observe a reduction in both the group of futures contracts and the group of options contracts.
The Futures Industry Association’s assessment of the performance of European exchanges shows that the largest number of transactions on European exchanges were concluded on
securities and stock indices.
As we can see from the list of major European exchanges, many of them are leading international exchange alliances. A well-known association from the list is the American exchange platform Nasdaq. For the first time, an
over-the-counter electronic platform was opened in the USA, as discussed in Chapter 3. Although the exchange’s head office is located in New York, it can participate in associations with other exchange platforms. The exchange is owned by Nasdaq. Inc. In 2008, the exchange acquired Nasdaq Nordic (formerly known as OMX) and the Nasdaq Baltic stock exchange market.
In 2008, Nasdaq was merged with OMX, the leading exchange operator in Northern Europe. This exchange alliance has expanded to include instruments from the American and European markets, changing its name to NASDAQ OMX Group.
NASDAQ OMX has an organizational structure that includes coverage at various regional levels.
The Nordic Market covers Sweden, Denmark, Finland and Iceland. The Baltic Market covers Estonia, Latvia, Lithuania. The First Nordic Market is an alternative market based in Stockholm. OMX was originally established in 2003 with the aim of promoting innovative instruments and financial solutions. In 2005, OMX merged with the Copenhagen Stock Exchange. In 2006, the Nasdaq Nordic Alliance was launched.
Nasdaq Nordic currently offers trading in a variety of options and futures contracts, as well as forwards on major Swedish, Danish, Finnish, Norwegian stocks and stock indices, as well as other
financial assets.
In addition to standardized derivatives, the exchange alliance also offers individual underlying assets. Individually designed contracts are effective on the exchange floor thanks to the clearing system.
Today, Nasdaq Nordic is a powerful global exchange alliance, operating on 24 floors and having its own 3 clearing houses and 5 depositories. Today, Nasdaq is located on 6 continents, therefore providing high liquidity and access to an extensive network of exchange instruments for international investors.
NASDAQ Nordic has a large number of stock indices. One of them is the OMX Nordic-40, which includes 40 European issuers of international level.
In general, the current state and prospects for the development of the European stock market can be characterized by the concentration of stock exchange activity on electronic stock exchange platforms located locally in various European countries.