Euronext announced on Thursday that regulatory approval has been given for Hong Kong domiciled trading firms to become members of the Euronext's Paris derivatives markets.
In a statement, the pan-European exchange said it has received approval from the Hong Kong Securities and Futures Commission (HKSFC) to provide automated trading services to clients domiciled in Hong Kong.
"We can now provide clients in Hong Kong direct access to a wide range of our derivatives contracts including CAC40 index futures and options, as well as our benchmark milling wheat and rapeseed commodities," Lee Hodgkinson, head of Global Markets & Sales of Euronext, said.
Lee said China is at the core of Euronext's expansion plans, calling this approval another "milestone" in the exchange's strategy to facilitate investment in European markets from the Chinese investment community.
The Euronext statement quoted Tan Yueheng, chairman of Chinese Securities Association of Hong Kong, as saying that in the long term, the move will allow Euronext "to provide a more diversified and efficient derivatives service for Chinese clients."
As of the end of 2014, approximately 1,300 issuers representing a combined market capitalisation of around 2.8 trillion euros were admitted to trading on Euronext's markets. Since its IPO in June of 2014, Euronext has established cooperation with several important Chinese banks and exchanges, such as Bank of China, China Construction Bank, Shanghai Stock Exchange and Shenzhen Stock Exchange.
