The new exchange will be named as the "Entrepreneurs’ Exchange", paving a new way for smaller firms to raise funds through bonds and equity, as reported by the Financial Times.
Small companies often face difficulties in raising capital from the market, as their initial public offerings and initial bond offerings receive least response by major market players, according to the company.
Launch of the new stock exchange is also believed to help in reviving investor confidence, who had lost their money during the financial turmoil of 2008.
Euronext was quoted by the Financial Times as saying that almost 900 firms listed to Euronext with market capitalisations of less than €1bn will be transferred to the new exchange including those firms listed on Euronext’s Alternext-a share trading platform for small companies.
Additionally, the NYSE Euronext is gearing up to ban high-frequency trading in small companies’ stocks, as such trades are considered for rampage volatility in small company shares.
