How can my company change from “Auction” trading to “Continuous” trading on Euronext or Euronext Growth?
For continuous trading, the issuer must carry out 2,500 trades of the stock per year. Once a year (in the first quarter)
Euronext reviews each stock’s transaction volume during the previous financial year. Euronext then invites those stocks
quoted on fixing that has been traded more than 2,500 times during the previous financial year to switch to continuous
trading. For those stocks on continuous trading that have been traded less than 2,500 times during the previous financial
year, the reverse applies.
To keep the continuous trading method with less than 2,500 transactions per year, listed companies must conclude an
agreement with a Liquidity Provider. The Liquidity Provider is appointed by the issuer and has to sign a Liquidity Provision
Agreement with the Relevant Euronext Market Undertaking. The Liquidity Provider will be admitted if it commits to a specific
size and spread, provided that such size and spread will in Euronext’s opinion have added value for the liquidity and the
quality of the market of a security. When considering the possible added value of a Liquidity Provider, Euronext will take
into account the current sizes and spreads in the Central Order Book; if such information is not available, e.g. in case of
an IPO, the added value will be considered on the basis of sizes and spreads of similar companies. In case of a dual listed
instrument, Euronext may also use the sizes and spreads of the other market.