NYSE Makes the Most of Europe
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[continued from NYSE Steals NASDAQ’s Thunder, Asian Exchanges Emerging Challenge]
Slepko: What’s up with the Euronext side of things?
Cutler: We saw the gradual thawing of [the European] market this year with some notable transactions on our platforms. We had Groupe Eurotunnel (LSE: GETS) which listed in London. We had BTG Pactual, one of the largest investment banks in Brazil that dual-listed in Amsterdam. Ziggo was another huge transaction that listed in Amsterdam. We’ve seen a number of good companies go to our European platform.
We also have a number of companies looking at cross-listing on our market here in the US as well as on Euronext. It’s a smaller number of companies, but there are companies that have strategic operations or employees in Europe and it can make a lot of sense.
Slepko: Why is Rusal on Euronext Paris? It is such an aberration as most of the Russian companies list in London, and there are no DRs on Euronext Paris.
Cutler: Rusal is a significant transaction, and we were successful because they were choosing a global platform, and the tight association between NYSE and Euronext was attractive. A listing on the Euronext opens a company up to the full Euronext platform and to the full set of investors from the Eurozone – which expose them to a much bigger marketplace.
Slepko: What’s going on with Fast Path [the mechanism that enables NYSE issuers, incorporated outside the European Economic Area, to use their SEC filings as backbone for listing prospectus in Europe]?
Cutler: We’ve had almost twenty companies use the Fast Path directive for listing on Euronext. It’s specifically employed by companies that have a nexus of customers, partners, or employees in the European region. Using Fast Path is often a cheaper mechanism than having to do full prospectus disclosures -- for example to have an option or equity plan for employees in Europe. You can use a very streamlined disclosure process via Fast Path if you are trying to compensate employees via stock in those regions.
Slepko: What companies listed on your exchange best illustrate what your exchange offers to those that choose to join your community?
Cutler: It’s hard to pick just one. Our strategy is to work with companies, and develop a deep relationship that adds business value. We are not just a listing venue, we are a business partner. We don’t just concentrate on big names, our activities take different forms in different places.
For example, with LinkedIn (NYSE: LNKD) and Yelp (NYSE: YELP) – which did their IPO this year – we’ve worked with both very closely on our NYSE Big StartUp initiative, a nationwide jobs-growth initiative designed to connect young emerging, growth companies and entrepreneurs with corporate America. The program calls on the nation’s corporate community to lend support, experience and resources to startups and small companies to improve procurement, networking, business development, training, marketing and information sharing. Yelp, LinkedIn, and Microsoft (NASDAQ: MSFT) were among the first corporations to participate in this endeavor.
Nick Slepko (hukgon) has no position in any company mentioned here at the time of publication. The Motley Fool owns shares of Microsoft. Motley Fool newsletter services recommend Microsoft and NYSE Euronext. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!