Euronext, the leading pan-European exchange, has announced its acquisition of Substantive Research, a firm specializing in in-depth analysis for investment research and market data. This strategic move is poised to significantly bolster Euronext’s investor services segment, offering enhanced tools and capabilities to its clients.*
Founded in 2015, Substantive Research provides comprehensive analysis of product and pricing comparisons for investment research spend, market data, and content. Its services are utilized by over 100 global clients, including asset managers, hedge funds, wealth managers, sell-side institutions, and private markets across Europe and North America.
Euronext, through its subsidiary Commcise, already offers advanced cloud-based solutions for commission management, research valuation, and consumption tracking. The integration of Substantive Research into Euronext’s ecosystem is expected to further enrich these offerings, providing clients with a more robust set of tools for managing research and market data needs.
The acquisition aligns with Euronext’s capital allocation policy and is anticipated to strengthen its investor services segment by introducing high-quality, recurring revenue streams. This move not only expands Euronext’s product portfolio but also enhances its ability to offer unique market benchmarks within the Commcise application. These benchmarks are designed to assist asset managers in demonstrating compliance with evolving regulations and making more informed decisions regarding research expenditures.
The integration is expected to benefit both Commcise and Substantive Research clients. For Commcise users, the addition of Substantive Research’s capabilities will provide access to enhanced market benchmarks, improving their ability to comply with regulatory demands and optimize their research spending. Meanwhile, Substantive Research’s clients will gain from Euronext and Commcise’s expanded scale, leading to broader coverage and a more diverse range of product offerings.
The acquisition also marks a significant step in strengthening Euronext’s connection with the buy-side community. By enhancing its investor services segment, Euronext aims to solidify its position as a leading provider of comprehensive solutions for market participants.
In summary, the acquisition of Substantive Research represents a strategic enhancement of Euronext’s capabilities in investor services, promising to deliver significant value to clients through improved research and market data tools, as well as increased compliance and decision-making support.
