Euronext NV reports that it has signed an agreement for it to acquire 51% of SecFinex, one of the leading European electronic trading platforms for securities lending.

Launched in 2000, the SecFinex platform provides securities lending traders with secure access to a live price-driven marketplace. A cross-section of lenders, borrowers and intermediaries currently participate in SecFinex.

The acquisition will enable SecFinex to extend its client base to members of Euronext and Euronext.liffe, ultimately facilitating access to post-trade processing and delivering added value to the client base via Straight Through Processing. For Euronext, the move will give clients more efficient, cost effective and automated access to the fast-growing securities lending market. Subject to the approval of relevant authorities, the acquisition should be completed in the first quarter of 2007.

SecFinex is to remain an independent company, with Euronext represented on its managing board. The other main shareholders, Société Générale Corporate & Investment Banking and Fortis Merchant Bank, have joined Euronext in committing to develop SecFinex’s market position. This structure will facilitate growth at SecFinex by providing the resources to become the leading force in online securities lending in Europe.

“We welcome Euronext as the main shareholder, and are convinced that its reputation, sales network and experience as a market operator, combined with the widely acknowledged expertise of SecFinex in securities lending, will provide a solid foundation for growth in a rapidly developing trading and exchange landscape,” said Allen Postlethwaite, CEO of SecFinex.

“Acquiring an interest in SecFinex will enable us to diversify the high added-value services available to our clients and enhance the liquidity of the securities lending market in Europe. This acquisition should give fresh impetus to growth in this area in Europe and is a new move towards bringing banking partners into a fast-growing and promising market,” commented Marianne Demarchi, executive director Cash Markets & Listing, in charge of Marketing and Business Development at Euronext.