Euronext CEO Boujnah Discusses AI, Brexit, and ESG at FIA Conference

Apr 10, 2024

John Lothian

John Lothian

Executive Chairman and CEO

Stephane Boujnah says you cannot afford to be late to AI, but also that exchange matching engine operators need to be precise, not roughly correct. The Euronext CEO spoke to John Lothian News at the FIA International Futures Industry Conference in Boca Raton, FL, as part of the JLN Industry Leader video series sponsored by Wedbush.  Boujnah pulled no punches in addressing the impact of AI, Brexit, geopolitical risks, cybersecurity threats and staying competitive. 

“London used to be the largest financial center of the European Union. Because of Brexit, London is now the largest financial center of the United Kingdom,” Boujnah said. He said the total aggregate market capitalization of the Euronext markets, listed single liquidity pool and book on the Euronext platform is about 6.7 trillion euros, between twice and two and a half times the size of the aggregate market capitalization of companies listed in London. He noted that 25% of the shares traded in Europe are traded on Euronext. 

Boujnah also addressed ESG investing and how Euronext sets the tone by being a good example to other companies, and that starts with the CEO. He said that when he travels between Paris and Milan, he takes a seven-hour train trip that burns one kilo of carbon, rather than a plane that burns 100 kilos of carbon. 

Euronext also highlights companies that are best in class for ESG and makes them more visible to investors on the exchange, he said.

Boujnah addressed how global uncertainties impact the Euronext markets and how the exchange tries to mitigate them. He said that despite Covid, higher interest rates, a slowdown in China, an energy crisis and higher inflation, it is a paradox that index levels are higher, indicating that markets are focused on a broader set of factors. 

The second uncertainty is the war in Ukraine, which Boujnah said is just a two hour flight from his office. He said the financial markets in Europe will sooner or later be activated to finance war and defense efforts in Europe. “The times of Victory bonds would be back,” Boujnah said. “The time of national defense bonds will be back, it would probably be called European defense bonds, but capital markets will have to be activated to finance the significant efforts that Europeans will have to do for defense, and which was not predictable a few years ago.”

He said the key to success in cybersecurity is not just investing in technology and people, but also in a management culture of security. The intrusions often come when someone has left the “key in the door,” Boujnah said.

Regarding competition from alternative trading venues, Boujnah emphasized Euronext’s competitive advantage in quality of pricing and liquidity pool. He discussed the company’s expansion into the dark pool business and its efforts to demonstrate the true cost of trading on alternative platforms. He stressed, however, that 60% of Euronext’s business now comes from businesses not related to volumes. 

We visit more than 100 financial news websites daily (Would YOU do that?)

The Spread

Todays  Options Newsletter

Now Read This

WFE Study Reveals Impact of Blockchain Settlement Latency on Market Liquidity and Costs

WFE Study Reveals Impact of Blockchain Settlement Latency on Market Liquidity and Costs

Elmhurst, IL (JLN) — Pedro Gurrola-Perez, head of research at the World Federation of Exchanges (WFE), discussed the findings of a recent research report on the impact of Distributed Ledger Technology (DLT) settlement latency on market quality during an interview with John Lothian News. The study, titled “The Effect of DLT Settlement Latency on Market Liquidity,” reveals significant implications for the financial industry, particularly in the context of blockchain technology.

John Lothian: Week in Review (May 20-24, 2024)

John Lothian: Week in Review (May 20-24, 2024)


More effort needed on financial literacy in the UK

When the Financial Times launched the FT Financial Literacy and Inclusion Campaign in 2021, the case for financial education was clear. Financial literacy has been shown time and again to improve life outcomes, across ages and demographics, while boosting economic potential.

Three years of experience working with young people, women and marginalized communities has only confirmed FLIC’s view of the importance and scale of the challenge. It has therefore been heartening to see increased attention from policymakers in recent years. Yet a report this week by the UK’s parliamentary Education Committee suggests that much more needs to be done.

Cboe’s Henry Schwartz Discusses Options Market Growth and Future Trends at Industry Conference

Cboe’s Henry Schwartz Discusses Options Market Growth and Future Trends at Industry Conference

ASHEVILLE, N.C. (JLN) — Henry Schwartz, Vice President and Global Head of Client Engagement, Data & Access Solutions at Cboe Global Markets, provided insights into the current state and future trends of the options market during an interview at the Options Industry Conference in Asheville, NC. The interview was part of the JLN Industry Leader video series sponsored by the Options Clearing Corporation (OCC).