Good morning, everyone, and thank you for being with us this morning. On behalf of the Managing Board of Euronext, all the teams of Euronext, I'm very glad to have you here this morning. What we are going to try to achieve is to share with you the ambition of the new strategic plan, Let's Grow Together 2022. And in order to do that, what I would like to do with you is first to remind you briefly what has been achieved over the past 3, 4, 5 years. Basically, the fundamental seeds of value creation that have been planted in the European soil to develop Euronext as a leading pan European exchange.
Then I would like to share with you the ambitions, the framework of what we want to do together with the teams, with our partners, with our clients, with our regulators over the past over the next 4 years. And we want to go through what are our business ambitions, what are our transformation ambitions and also to look at not only what is outward looking, but also what is going to happen organizations because very often during quarterly release, we focus on performance. But we don't have enough opportunities to share with you what's happening beneath, what's happening within the organization. And this plan has been developed by the teams. It has been it is a homemade plan.
It's a plan that has been developed with workshops involving almost 25%, 30% of the employees of the group. And I think what about the few things that make Euronetxt different is the focus on operating performance, but also what it means, which is transformation of the internal organization. And obviously, we want to spend time discussing our M and A strategy because as you can imagine, we need to make sure that the value we create through operating excellence is deployed in a disciplined manner through a value accretive acquisition. And then there will be a Q and A, which will allow you to ask more specific questions to my colleagues. So with me today are all the managing board members, but I will introduce that presentation.
Then Anthony Atia, the Head of Listing and Post Trade, will join me. And then we will have various presentations from Simon Gallagher, who runs our cash and derivatives business Chris Toppel, the Global Head of Sales will be here and Giorgio Modica, our Group CFO. After the lunch in the afternoon, we will have dedicated workshops on very on 3 key value drivers of the company: the cash trading cash equity trading business, where Simon will share with you the drivers of the resilience of this business, another workshop on how we are going to integrate and take to the next level Oslo VPS that will be presented by Herbert Abramson, the CEO of Oslo VPS and Giorgio Modica. And we will have another workshop on our advanced data business with Christophe and Nicolas Ribert. So there will be a break of $20,000,000 after the section on our business ambitions, and then we will reconvene to cover internal transformation, M and A and Q and A.
So this is basically the agenda we are going to cover. And please feel free to prepare your questions for the Q and A session at the end of this morning where we will have ample opportunities to give the floor also to other members of the team. The first point I want to cover is to remind everyone the voyage that took place over the past 4 years. Were the key drivers of value creation within Euronext where it's structured. Basically, in 2014, Euronext was a carved out collection of assets that ICE didn't want to keep and that we're IPO ed about €20 per shares.
And what the company is today is a €5,100,000,000 company, which is a diversified market infrastructure, in part a diversified exchange, which has no global ambitions. And what has happened over the past few years is quite impressive. We have significantly diversified the company. We have significantly invested in innovation, people and in creating cutting edge technology platform. And we have significantly improved the generation of value, the delivery of growth, the delivery of yield.
And today, Euronext operates in 7 local markets with people in 16 countries. We are the 1st listing venue in Europe, the 1st cash trading venue in Europe. And the total revenue pro form a 2018 have reached 734,000,000 with an EBITDA margin of 57% last year. So when we go into the details, I just want to focus on the diversification front on 2 very important concepts. The first one is that originally, Euronext was a collection of cash trading cash equity trading assets.
We have significantly diversified the top line of the organizations. And whereas non volume related revenues represented only 44% of the top line at Euronext at the time of the IPO. Today, they represent 51%. So this diversification towards more nonvolume related revenues is significant. It could have gone faster.
It will go faster, but this process has been launched, and we are much less dependent on cash equity trading volumes than we were 5 years ago. The second diversification is much more straightforward is on the geographic front. The footprint of Euronext had never changed since the IPO in the first IPO in 2000. Since 20 16, we have significantly increased the footprint of Euronext with the acquisition of Fast Match today Euronext ForEx in the United States, but then the acquisition of the Irish Stock Exchange and Norway. So it's 22% of additional revenues from new geographies that have been created between 2014 and 2018.
So one of the key message here is clearly that we have now proven the capability of Euronext to implement cross border transactions, delivering synergies within the European continent. One of the key features of Euronext that we are so proud of is the fact that over the past 5 years, we have been consistently focused at powering pan European capital markets to finance the real economy. This is one of the features that make Euronetxt different. Some of our competitors have walked away from listing, trading or these businesses are sometimes described by them as legacy businesses. And for some of our competitors, companies are just the raw material of the business.
For us, issuers companies are the purpose of an exchange. And that's why we are today the largest equity franchise in Europe with a wide range of issuers. That's why we are developing intensively our strong sectoral expertise with strong European segments in automotive, in luxury, in chemicals, etcetera. But with the addition of Oslo BPS joining us, the addition of significant expertise in shipping industries, in oil and gas and in seafood. And this focus on issuers, I'll come back to this point and Anthony will cover the point later, is one of the key features of Euronext.
The other part, which is sometimes a bit underestimated, is that with the acquisition of Dublin, of the Irish Stock Exchange, the creation of Euronext Dublin, We are now the largest corporate debt listing venue globally and with more than 40,000 bonds listed on your next markets. And this leadership in corporate bonds offer us the positioning to finance also the debt the market debt of our clients. The last point I want to underline is that the leading European marketplace in agricultural products position that we have in milling wheat derivatives, in rapeseed, in corn, has been enriched recently with the acquisition of Oslo BPS in terms of salmon and seafood derivative products. So this is a very important set of features that mean a lot for the local markets where we operate and that we are very proud of because we believe that you can have resilient, sustainable exchanges and market infrastructures if you are soilless, if you are not connected to the local communities and the local ecosystem. In addition to that, what we have done over the past 4 years is to diversify away from our legacy business.
And we have invested in fast growing revenue services and in new asset classes. And what we have done over the past 4 years in terms of bolt on acquisitions of different size, some of them small, others larger, to deploy a family of corporate services solutions for our clients with company webcast, with iBABS, but also to help the corporates and the sell side in dealing with some market abuse regulation inside their list solutions, inside the lock, etcetera, is a family of products and new solutions that have created altogether with, obviously, Euronext ForEx, EUR 37,000,000 of incremental revenues that were just not there 4 years ago and that have nothing to do with the core cash equity trading business. I just want to focus on 2 major developments that took place over the past 3 years. The first one is the welcoming of your next Dublin. And clearly, when we welcome Euron X Dublin, we welcome a group that had 89% of done volume revenues in 2018 and a group that is contributing its expertise, as I mentioned earlier, in corporate bonds that is contributing the positioning as a post Brexit platform, together with Amsterdam and Paris.
And where we have deployed the OPTIC trading engine in a very determined manner. And clearly, the integration has been extremely successful. Later on, Georgio will walk you through some of the aspects of our numbers. But the speed and the magnitude of the synergy extracted from Oslo has been from the Dublin acquisition has been extremely rapid with already EUR 7,500,000 of run rate synergies already achieved. And turning now to Oslo.
It's exactly the same to a larger scale to a certain extent with 83% of non volume revenue in 2018 with leading position that Oslo brings with them in energy, in shipping and in seafood. And with Oslo, 48% of the Oslo VPS revenues generated by the CSD, welcoming Oslo VPS within Euronext means welcoming another CSD and a bigger CSD alongside the one we operate in Portugal in Terbulsa. So in both those cases, what it means is that not only that our federal model, as I will cover in a few minutes, is fit and the perfect framework to allow single country exchanges to be part of a united in diversity model where we are super united on certain features that require scale, but super diverse, super specific, super local and other dimensions. In both cases, those exchanges are benefiting from the transfer of the Euronext technology platform and the integrations of the OPTIC trading engine that replaces the previous technologies that were outsourced, in one case, in Ireland to Deutsche Borse, in the other case in Oslo to London Solution Exchange, Milan and MIT. So they contribute a lot with their core businesses.
We bring a lot with the trading engine, and they are becoming they are connecting all their members to the single liquidity pool of Euronext. OPTIC, as I said, has been a major achievement and has been the focus of technology efforts of Euronext over the past 4 years. It's definitely a premium level performance platform in terms of latency by far, in terms of stability, in terms of scalability. And it is an engine that is the bedrock of the acceleration of the operating performance of Euronext internally, but also an engine that is available for other exchanges. As you know, today in the planet, there is a minority, a small group of market infrastructure or technology groups that do control their technology future, probably 7 or 8 of them max.
And the rest, all the other market infrastructures buy technologies for those companies. And we are one of the few who have been able to become technology makers and sovereign in terms of controlling their technology future. And this platform will be completely deployed by the end of 2019 on the last segment, which is not yet operational, which is the derivatives market. One of the last points I want to cover about the achievements of the past 4 years is the amount of energy and effort we have spent on strengthening the human capital. The teams that run Euronext today are somehow different than what they were 4 years ago in many respects.
We have significantly upgraded the talent pool to make it more agile. And some of the previous tenants that were more used to work in a cozy market infrastructure have left the group. And we have created a profound culture of accountability and a culture of client centricity. We measure net promotion scores. We collect client feedback.
We engage into more proximity with clients. We measure client intensity, all sorts of things that were not common in the exchange of the old good days. We have distributed centers of excellence. We have now a very important center of excellence in Portugal with the Porto Technology Center. We have the center of excellence for debt, fund and ETF in Dublin.
We have the Center of Excellence in the building in the making for commodities in Oslo. So we have distributed teams across the group that provide the cement of our federal model. We have proven that we can do integrations and post merger integrations in a very systematic manner, and that comes with 10% of inspiration and 90% of transpiration. It's difficult, but it's now available and scalable. And we have created, I think, a lean and agile organization.
We have eliminated almost one layer of management across the organizations, sometimes even 2. So because I mean the progress on the EBITDA margin don't come without this type of effort. So clearly, this slide is important because it's all about things that you don't see in quarterly results. It's about the profound human transformation within the organization that are impacting the culture, and the culture is what has the strongest resilience despite the volatility of the markets. And that's why it's very important to bear in mind that this achievement is probably one of the most important seats for the future of the organization.
That translates into numbers that you are all familiar with. First, in terms of revenue growth, The company in 2014 was a $458,000,000 top line company. It's today pro form a 2018, dollars 734,000,000 top line. The dividend was almost doubled from 0.8 to 1.5. So the company is has been growing through a combination of organic growth and significant improvement in market share and yield, but also through external growth and acquisition, as you are all aware of.
And that progress on the top line while is commensurate with the progress on the cost base and therefore, the EBITDA margin. The EBITDA margin of Euronext in 20 13, the last year before the IPO, was 29%, 2.9%. In 2014, after 6 months of IPO, the company had a 41% EBITDA margin. Last year, the EBITDA margin was 57%. So between 20132018, we have doubled the EBITDA margin of the company.
And that's not because of luck, not because of one off, just because we operate ChurnX as an industrial company with industrial standards, not like a finance institution. Costs do matter, and efficiency does matter, and that's how we have made these numbers resilient. I'll come back to the guidance that you have seen in the press release yesterday. It takes as much effort to move from 41% to 57% as it takes to stay at 57%. So it's not there is no click here, if it click here, as they say in French, to maintain this stronger EBITDA margin.
So this is the track record that we are very proud of, but that creates also a pressure to deliver. The same applies to our balance sheet discipline. Euronext is super disciplined and much more disciplined on our peers than our peers on P and L. And never forget that our numbers have almost no adjustment. So when you compare numbers and if you want to compare apple and an apple and not apple to ranges, check what our peers do in terms of adjustment.
The same applies for balance sheet. We are one of the most disciplined balance sheet in the industry with a single A minus rating after the acquisition of Oslo with a stable outlook with a clear commitment to continue acquisitions. We have been able to create flexibility with a new RCF. We have been in terms of liquidity deployment, we have issued 2 bonds, which give us sort of open field until 2025 and even 2019 for the 2nd bond. And we have now new friends, which is an extensive group of bond investors with whom we have a very productive dialogue to get support in case of further material acquisition.
So the fact that the balance sheet is safe and managed in a disciplined manner, the operations are safe and managed in a disciplined manner, the returns are there and the focus on operating expense is there, are very fundamental pillars of the future ambitions of the group. And when you look at the numbers, it's very simple. The simplistic way of looking at what Euronext has done with the money of the shareholders over the past 4 years is very simple. Over the past 3 years only, we have generated EUR 1,000,000,000 of EBITDA. This EUR 1,000,000,000 of EBITDA translated in EUR 6 $100,000,000 of operating cash flow.
Half of it, dollars 300,000,000 was distributed in dividends over the past 3 years. And then we have deployed EUR 1,100,000,000 of investment acquisitions by raising EUR 900,000,000 of debt. So this is a very strong cash flow generation that combined with the disciplined leverage has allowed us to do both decent dividend distribution and strong capital deployment. This is UNX. Some analysts yesterday were telling me, well, it's a bit boring.
Okay. This is what it is. We are in the business of making money, and I think I wish you to invest in other boring businesses with this type of financial profile. And that translates into something which is just the way the rest of the world looks at us. The reference point is the day of the IPO in 2014, and the other lines are our peers or relevant indices.
Basically, we have been best in class in terms of share price performance up until July, where LSE announced the merger with Refinitiv, and they passed us. But for the moment, we have no idea to compete with this megadeal. So that's why they are 3 15% of what they're worth at the time of our IPO, and we are at 2 70%. But it's significantly stronger performance than on our European peers. Now what's the plan?
What are we going to do? Basically, we want to build the leading Pan European market infrastructure. And in order to do that, I just want to focus for a few minutes on some assets and challenges that we assets that we are going to leverage and challenges created by the landscape. Just to remind everyone that the world we are getting into is slightly less frozen than the world that we were facing in 2016. Obviously, no need to comment on uncertain global economic growth.
I mean, growth prospects are not as rosy as they were in 2016 visavis2017. We have meta or macro changes in terms of what climate change and sustainable growth means in terms of changes of investors' preference. I'll come back to that point. At some point of time, some technological disruptions will materialize. Honestly, over the past few years, they have not materialized as disturbance to our markets as they were expected to be.
But at some point of time, they will materialize. I want to spend a few more minutes on the 3rd item, which is the unknown impact of low negative interest rates. I mean, 75% of the traders have never seen an interest rate increase And 100% of the traders 100% of the people in this room have never seen negative interest rates. So the reality is that we are, all of us, a bit disabled to forecast what's happening in a negative interest world as well. I mean, we are in a world where if you want to reduce tax or fiscal deficit in France, the best thing to do when you are the government of France is to increase your debt because you collect €200,000,000 from the people who lend you money when you increase your debt.
We are in a world where Greece where people are paying negative interest rates to get Greek bonds. So we are in a world where Solvency II was invented with strong pressure to invest in fixed income, not in equity because the rule was that fixed income is good for insurers and for pensioners. Equity is bad. Now we are in a situation where all the insurance companies are fighting about what they are going to do to meet their commitments and how are they going to address their reserves. So this is a profound change.
I do believe that at least intellectually, I do believe that equity is the only asset class in a foreseeable future in a low interest rate environment or even a negative interest rate environment that produce yield. And there are some people in the planet that need yield and liquidity. So I believe that there is a new way of relooking at the equity world in an environment of low interest rates. Obviously, point 4 is about the concept of Tweets, So no need to elaborate on that. And finally, the Brexit outcome, which is somewhere in the environment.
All of us thought that Brexit would be a sort of Q1 2019 issue that will be part. But since it's becoming now a sort of moving target, we have to factor that in a cautious approach of the environment. Clearly, when we focus more on the industry trends affecting specifically our business, the world of ESG is now absolutely overwhelming. Something fundamental happened in terms of changes on collective preferences. All the asset managers are looking for ESG investment.
Everyone wants to us to be everyone wants everyone to be relevant in terms of ESG compliance. Corporates are increasingly using direct financing. We need to redefine or design our listing business in a world where private equity has both reached big size and where the reality is that some investors want equity and are willing to give up on liquidity and are willing to buy to take equity risk in private equity funds. So this means that we have to redesign the relationships with the private equity well. We have a regulatory pressure and fee pressures on the buy side firms, so they are cutting costs.
So when they cut costs, we are one of their costs. So we need to adjust and redefine our relationships with the buy side in an environment where making money for them is more complicated. We are in a world where there is a continuing rise of passive investment, which means, again, a different approach of our cash equity trading business. We are in a world of fragmented execution landscape. Again, so far, all those new players have entered into niches or have tried to be focused on some small segment of the business.
But still, after MiFID 1, which was opening about opening competition, we have MiFID 2 with the reshuffling of the cards within the dark side of the market between systematic internalizers and others. So we need to address that. And on the data front, the appetite for data is increasing, but the appetite for nonfinancial data is increasing even further. The appetite for advanced data in terms of smart indices and so on is growing, and this is a reality that we need to address in order to remain relevant. So all that is also affected by continuous changing in the regulatory environment.
MiFID II is going to be reviewed just to adjust the impact on cash equity market, which was not exactly the intended objective initially, the impact on SME brokers and on research equity research for SMEs, which has been negatively impacted in particular. Listing, I believe that revised prospectus directive should have favorable impact on what we do. CSDR framework is being reviewed too. Sustainable finance is work in progress. I mean, all this world of sustainable finance is going to become sooner or later, a new accounting language, a new set of reference points.
And we have to live with that. I mean, for years, investors wanted yield, growth, value, operating margins, performance. Now they want real they want yield, value growth, operating performance and conformance with some environment, social responsibility and governance standards. How these IFRS of sustainable growth are going to be created, how long will it take is a fundamental driver of the years to come. And at some point of time, there will be a segmentation on the fintech environment.
So I believe that one of the core assets that Euronext has to address all those challenges and to take the company to the next level is clearly to leverage its unique federal model. We have something which took 20 years to develop, which has been polished, tested for the past 5 years, which is this United In Diversity model where basically all those exchanges combine in a very centralized way what requires scale, a single liquidity pool enabled by a single order book and powered by a single technology platform and at the same time retain locally relationship with regulators, relationship with issuers, relationship with ecosystem because exchanges have been for centuries the tonne all of growth. And we want to make sure that this proximity with the local environment remains extremely strong whenever it is more efficient. And that balance has been effective. It has been adapted for the acquisition of the Irish Oak chain.
It has been recognized for the acquisition of Oslo BOSS VPS. And that's one of the key features of Euronext for the years to come that we want to take to the next level. And to sum up on our assets for the years to come that have been developed very successfully over the past 4 years. A cutting edge proprietary technology platform, OPTIC, it's there, but it was not there 4 years ago, and it makes a big difference when you have a cutting edge new fresh new technology platform and when you are sitting in a technology. And when you look at our peers, they all have their problems because when you have an aging technology, then you pile up layers of patches.
And it's very different from the very ambition that we have embarked into a few years ago, which was to start from a white page. We have a strong listing franchise with strong sectorial expertise with strong local footprint, but also global positions. I mean, EUR 4,000,000,000,000 consolidated market cap. The reality is that today, the Euronext markets are the largest liquidity pool in Europe. We have strong national and ESG indices that are a very solid bedrock for growing or advancing our business.
We have developed over the past 3 or 4 years a comprehensive suite of corporate services and for issuers and for investors, and it's growing extremely well. The numbers are there. We have an expertise in liquidity and yield management to remain the reference market, and Simon will cover that into details and will tell you how we want to take that to next level. We have a unique culture of efficiency. And the more I'm spending time in this industry, the more I'm convinced that it makes us very different from many of our peers who are much bigger but much less focused on operations.
And we have a disciplined and agile capital deployment. One thing that we have demonstrated in the process of the acquisitions of Norway is that we were able to be bold, disciplined and agile. And that's what the story of the acquisition of Oslo VPS store. So this is your next. And what we want to do for the years to come is to we are determined to take that to the next level.
We don't want to stay a successful, perfect bonsai tree, a sort of magnificent, well performing exchange. And the new ambition is let's grow together 2022. And the plan, the ambition is to build the leading pan European market infrastructure. And what the leading pan European market infrastructure means is 2 fundamental things: 1st, to move from a successful exchange to a leading market infrastructure. And the leading market infrastructure is an exchange that is much more integrated downstream, upstream and with much more in salary services.
It's a group that remains super profitable on its core business, but which provides its clients with more post rate solutions, more data solutions, more services solutions, more presence in much more diversified asset classes. It's a bigger company. It's a company which is closer to its clients and much wider part of the value chain. And it's Pan European because for the foreseeable future, for the plan, the focus for the footprint expansion will remain in the European continent. There is a place where we can be the backbone of the Capital Markets Union.
There is a place where consolidation is needed and where we are the legitimate consolidator. There is a place in the planet where we have a track record of extracting synergies in cross border deals. There is a place where we have been probably one of the few ones who have been able to complete effectively successful cross border transaction in the exchange world. And this is Europe. That's where we're going to it doesn't mean that we will not buy asset outside Europe, but when it comes to exchanges, our focus will remain Europe.
We have acquired Fast Match in the U. S, Euronext ForEx. We will try to extend our ForEx ambition with other acquisitions, and we will buy assets wherever they are. We have expanded the ForEx operation in Singapore and alongside the operations we have in Tokyo. We'll continue to be global.
But in terms of consolidation of exchanges, our focus will remain consolidation of Europe where the opportunity is and where we are legitimate. And because our mission is to connect local economies to global capital markets to accelerate innovation and sustainable growth. Why? Because no exchange the big exchanges have given up to be local, and we want to remain local. But the small exchanges that are local have no means to be global.
So what we want to do is to find and develop and take to the next level the successful recipe of being super local, but at the same time scalable at group level to connect our local business communities to the global capital markets. There is a need for that mission, and we can fulfill it. And we have demonstrated that we can do it, but we want to make it take it to the next level. To accelerate 2 things: innovation, I'll focus on that point in a minute and sustainable growth because we are a natural platform. We are perceived as neutral by all the stakeholders or clients, and we have a role to play in this migration towards sustainable finance and sustainable growth where there is a need for a place for reference standards provision.
And that's what it's all about. Let's roll together 2022. So this will be implemented through a 6 pillar, which will be implemented over the past the next 6 years across the company, the diversification of our local and global infrastructure in terms of new products and new solutions, a significant effort, I will come back after the break on that one, on the client connectivity because this is the ultimate recipe to protect fundamentally your business. Even in an infrastructure business, even in the flow business, there's a big difference between the ones who spend time with clients and the ones who consider that they are in infrastructure. I was an investment banker for a few years in my life, maybe too many years.
But one of the big lessons of investment banking is that the telephone never rings. So if you don't call the clients, they don't call you. And deploying this culture of client connectivity in an infrastructure is really an accelerator of top line. We want to continue delivering operational excellence. You may smile because we are already best in class in terms of operational excellence, but there is no limit.
I mean, believe me, there is a lot we can do to do even better and to further increase our operational excellence and to deploy it to other assets. We need to better empower our people to grow, perform or innovate. I'll come back to this point, but finding the right nuance between making everyone super accountable for what he or she says and they'll do And on the other hand, incentivizing everyone to take risk and dare is very complicated. So we need to create a more widely debt culture. We want to enable sustainable finance.
I'll focus on that in a few minutes. And obviously, we need to keep deploying our capital in a very disciplined value creative manner in order to build this pan European leading market infrastructure. So I will focus on 2 aspects that are horizontal in the plan: innovation and sustainable growth. Euronext has spent a lot of effort in deploying a very innovative and cutting edge technology platform. That's an infrastructure project.
What we need to do and what we are going to do and what we are organized to deliver is to distribute innovation across the organization in a much more granular manner, to create the right incentives for people, for the staff to innovate and to massively deepen cooperation with clients. The concept of co designing of offering with clients is going to invade the organization. The second aspect is to leverage digitalization, the same. From the outside, market infrastructure and exchange looks at a super big IT and data company. You should you would be surprised by the fact that there is a lot to do in the digitalization of processes that are already digitalized in other organizations that are under much stronger EBITDA margin pressure.
So we need to and we can unleash a lot of value by leveraging digitalizations. We need to accelerate business on innovations in a lucid, calm but granular manner. We need to be ready if and when tokenization takes off for listing. We need to be ready, and we are going to be to adjust our offers in a much more innovative manner for the trading to the bespoke trading models. Artificial intelligence is anything between a buzzword and reality in terms of impact on all business.
For asset managers, it's a reality. For some of our business, it's the jury is still out. But clearly, for Advanced Data Business, it's a reality that requires a lot of changes in our processes and that we are committed to deploy. And finally, we need to further enrich the Geo and X Core technology capabilities to make uptick or which is a big success or a big shipment, continuous evolving platform to remain the best in class in the planet. The last point I want to cover is about this notion of sustainable growth and sustainable development because an exchange by nature is closer to the community than any other commercial organization.
And exchange for centuries is a place where people meet and where we fix the problems of the ones who have too much money and no IDs and who look for yield and to fix the problem of the ones who don't have enough money but have IDs and projects. That's what the exchange was created for, or to create a transparent price and to create liquidity whenever you had to sell So it is embedded in the community. It's a place where it's a tonne all of growth. So we are the natural partner of the investors' and the issuers' preferences. The reality is that over the past 10 years, with an acceleration over the past 2 or 3 years, there have been a fundamental profound change of collective preferences of investors and of issuers.
We can debate forever about what are where the backgrounds are. The reality is that companies have to be to comply with non financial standards related to sustainable finance and sustainable growth. Also, what we do for a living is to finance CapEx. And today, a growing size of CapEx is driven by ecological transitions, climate change transition and investment in new forms of energy. So this is the place to be to raise money to finance these type of projects.
And we need to adjust also to a new reality, which is that our teams, our clients, our regulators are also expecting us to play a role in this dimension. So we have decided not to be a follower, but to be the promoter of that transition because it this is our natural purpose. And that's why we are going to do things in 2 ways: 1st, as a good corporate citizen to become best in class in terms of compliance and to comply with the Sustainable Development Goals in a very disciplined manner, but also to provide tangible solutions to our clients. The first one is provide much bigger visibility to our green bond business. We have already when we consolidate the green bond business in Oslo, the green bond business in Amsterdam, in Dublin and in Paris, a very, very material and sizable green bond business, but we want to take it to the next level.
And we will do it to provide visibility to make your next place to raise debt for financing transition. The second one is the ESG world. We have already a leading ESG franchise. We are going to take it to the next level because this is what our investors want. And this is a place where you have niches to be differentiated from the leading global indices and where you can make the difference.
And as it will be explained to you later, where our clients have already recognized our specificity. We are going to help issuers as well, which is very important to get ready to comply with these new accounting language. And Oslo has led the way in this respect with the support and the guide for issuers to comply with sustainable finance requirements. And we will be, over the next 3 years, the place where sustainable finance and sustainable growth standards are going to be developed or jointly developed. So those all those ambitions which were set in the financial targets that you have seen in the press release circulated yesterday, we intend to grow for the current perimeter as it is today our revenues by 2% to 3% per year in average for the next 3 years.
We intend to grow the EBITDA margin to 60% plus by 2022. We will remain disciplined in terms of CapEx with 3% to 5% of revenues deployed in CapEx. Never forget that Euronext is a bit old school in accounting because most of our expenses are OpEx and very exceptional super one off CapEx, which means that we our numbers are cleaner than many of our competitors wants. And the dividend policy will remain the same with a strong discipline of distributing anyway 50% of the net income to shareholders and to keep 50% for further investment. Unless, as I said at the previous plan, which is true, if we are in a situation where we are not lucky, we can't do big deals and we pile up cash, then we will consider special dividends in due course.
But the core scenario is deployment of capital to create value. And that's why I want to now to give the floor to my colleagues so they can share with you the Euronxt business ambition. So business by business, you can listen to what we are going to do and to deliver in the next few years. So Anthony is going to cover our listing ambitions.
Thank you, Stephane.
Good morning all. My name
is Anthony Etienne, the Global Head of Listing and Post Trade Business as well as the CEO of Euronext Paris. I've been in the company for a long time. I was there at the creation of Euronext in 2000. In the next 40 to 45 minutes before the break, Simon, Chris and myself will take you through the different businesses of our current franchise. So the value chain of Euronext starts with listing.
The listing business is all about financing companies' growth, helping them to raise money, helping them to deploy their business, helping them to create jobs. And this is the core of what an exchange should do. The listing business has been quite strong at Tronex and growing in the past 3 years. We've repositioned it into more diversification with debt, funds and ETF. But also, we've given a new dynamic to the IPO business and to the sectorial approach in the equity world, in the IPO world.
We also managed to get much, much closer to our issuers by growing corporate services, and I will take you through all these different aspects. So the listing is the 1st step of the value chain, as I said. The 2nd building block is the trading, and Simon will take you through all the cash equity and derivative business. Also, we have market data and indices that Chris will talk to you about. And then we have post trade and technology solutions.
So focusing on listing, it represents around 19% of the revenue base of Euronext, and it's a highly diversified, growing engines in Europe have moved away from listing to concentrate on derivative and post rate. We have not done that because listing is at the core of our DNA. It's at the core of our federal model. And today, when we talk about federal model, we talk about a single liquidity platform, but we also have as many listing venues as we have exchanges. And we have kept a very close commercial reach in every country where we are present.
This allows us to care about our issuers and to make sure that they know that we can bring visibility, liquidity and we can connect them with local and global investors. This is the core value proposition of our listing business. We have also improved attractiveness of our international listing business, thanks to Oslo, and I will come back on that. And we have managed to expand beyond the borders of our exchange countries by reaching to Italy, Spain, Switzerland and Germany in order to prospect for new issuers on our True Pan European platform. The total money raised last year across our leasing franchise for equity and debt was above $1,000,000,000,000 So it's a significant and dynamic business despite challenging market conditions on the equity world.
So I'm going to focus now on the equity listing franchise. We are the listing venue on equities in Europe with more than 1400 issuers, equity issuers, That represents €4,000,000,000,000 of total market cap. So we are number 1 in terms of cumulative market cap, and we are leading the liquidity pool of exchanges in Europe on that front. This is a value proposition that is very dynamic and very strong, as I said and as Stephane said, despite challenging market conditions, despite the fact that issuers have the choice. When they want to raise money today, they can decide to stay in the private equity world.
They can decide to go for a trade sale. And as you guys know very well, well, the regulation has not been too friendly with equity analysts. And our job at Euronext is to maintain the highest level of attractiveness for this franchise and for capital markets. How do we do that? We do that, well, thanks to a highly specialized sectoral approach.
We are very good at SME listing. We are very good at tech listing, and I will come back on that. And we have developed and we have invested in a series of pre IPO programs that cover tech companies with Techshare. So Techshare is a global program. It's the number it's the 5th year that we are running this sort of pre IPO MBA program for companies who are considering the IPO but want to get closer to what it means so that the day they have to make the decision between the IPO and another solution, they know exactly what it means for them.
We have also developed a program called Family Share in France, but it is growing for family owned business because they have specific needs. And we also have a very strong and successful program in Ireland called IP Already that is being deployed on different countries. One of the very specific aspects of our listing franchise is the diversity of the sectors that are composing it. So it ranges from IT to health care to luxury to oil and gas to shipping to fishery, etcetera. This diversification is also the signal of a healthy and growing issuer space.
And if you look at every sector of this franchise, you do have tech disruptive companies that are emerging, and some of them are actually listed on our market. And well, I want to focus now on what it means to have a strong tech franchise. There are 2 misconceptions in Europe about tech IPOs. The first one is that we don't have a European exchange for tech companies. And the second misconception is that when you're a successful tech company, you need to go to the U.
S. When you want to do your IPO. Well, these are misconceptions. They're both wrong. Euronext has 485 tech issuers listed on our market of all sizes, from start ups to mid caps to large caps.
This franchise has grown dynamically in the past 3 to 4 years with 140 tech companies that have been added to this franchise. Tech Share is deploying our brand and our pre IPO effort across Europe. We have open offices, as I said, in Germany, Switzerland, Italy and Spain. And these companies from these countries prefer to choose Euronext rather than their home exchange because we're bringing the best of our world, which is a global platform with OPTIC and the global reach of investors as well as a local approach. So this is what the tech franchise is, and we are investing in it.
And we believe that we are the best positioned in Europe to continue Now what does 2022 look like in terms of equity listing franchise? Well, first of all, we want to bridge the gap between private market and public market. This is our job to continue helping companies to raise money and to find the right investors and to grow through that through these markets. So we're not afraid of the increase of footprint of the private equity. We want to embrace it, and we want to connect with private equity funds in order for them to look at the exchange as a preferred would for exits.
But we also want to be present there because that's our job. That's who we are. The second areas of development is to attract more international issuers, more large caps coming from outside Europe. Thanks to Oslo and to Amsterdam and to Paris, we have a growing international listing franchise that is specialized in oil and gas, fishery and shipping in Norway. And we want to take it to the next level and be the venue of choice post Brexit for international listings in Europe.
The 3rd area is about continuing expanding on SMEs and on tech. We're good at that. It's our expertise. And in 2022, our platform will be growing, will be expanding, and will continue to be the leading platform in Europe on this front. The 4th area, as Stephane said, ESG is a it represents a key set of expectations for issuers and for investors.
And we're going to be there for them. We're going to grow our expertise around ESG advisory support. And also we want to want to support our issuers in ESG guidelines. And last, number 5, we see disruption happening on the digital asset world. We see companies looking for alternative way of financing.
You guys have heard of securities tokens and other blockchain related elements. We want to be there. So we're not thinking that the world is going to change tomorrow. We're thinking that it's more of a long term, so it's a slow disruption, if I can use that expression. But we want to be there because, look, the exchanges in the past 25 years have been disrupted and have been at the core of disruption ourselves from the floor trading to the electronic market, from monopoly to competition, from local to global.
Well, maybe digital assets are just another step of this transformation. Maybe it's Exchange 2.0. Moving on to the other asset classes of leasing. And before that, I want to talk about corporate services. In the past 3 years, we have grown much, much closer to our issuers.
We worked with them to understand their needs. We worked with them in order to see what they were expecting from the market post IPO. And this is how we co designed with them the suite of corporate services that we are growing now. So it's a high growth franchise for us. It went from €4,000,000 revenues in 2016 to €16,600,000 last year, and it's growing fast.
We built this franchise with a combination of bolt on acquisitions and organic growth and pushing with a stronger commercial intensity and cross selling initiative. So what are we talking about here? We're talking about 4 areas where our issuers and also the non listed corporate need support and need services. And we are well positioned for that because we are a neutral party. We're good at technology, and we're good at deploying solutions with our clients.
The first area is within governance with the acquisition and the growth of IBAS. The second area is about financial communication with company webcast. And by the way, this Investor Day is powered by company webcast. They are the one organizing all the webcast and the solution for this Investor Day. We also go into compliance with the acquisition of Insider Log, which is a company that provides a solution to report inside the list within market abuse regulation in Europe.
And last, we're going into Investor Relations in partnership with our ecosystem to provide IRS solutions as well as shareholder ID solutions. This franchise is now taking a significant size in our business with 2,500 clients across Europe. And among these 2,500 clients, we have 600 of them are issuers, not only on Euronext, by the way, issuers on various exchanges in Europe. Now this franchise in 2022, what does it look like? We want to take this recent success in Corporate Services to the next level.
So obviously, we want to accelerate the growth and do more cross selling and expand it. We also want to continue enriching and deploying this suite of solutions. We're looking at potential further M and A there, but also at more organic growth into more ESG like solutions. And the last part, we want to expand it in other countries such as the Nordic countries, thanks to the Oslo footprint in Scandinavia, but as well as Germany, Austria, Switzerland, UK and Ireland. Now moving on to the other set of asset classes within the listing business.
I'm talking about debt, fund and ETF. They're run by Daryl Byrne, who is our CEO of Euronext Dublin, who
has a group
responsibility for debt, fund and ETF. And as you can see here, the welcoming of Euronext Dublin into the Euronext family has significantly grown the debt franchise with 40,000 bond listed on our platform. So one bond out of 2 listings in Europe is coming on Euronext. So we have this very strong position on bonds. We are also growing the money raised.
This is not specific to Euronext. It's a global trend, but corporates are heavily using the debt to finance their growth despite low interest rates. And we're also number 4 in terms of ETF in Europe. Now where do we take this franchise? We want to leverage our position to develop more ancillary services and more solutions, more adjacent services.
First of all, in the debt world, most of the bonds that are technically listed today in Europe don't trade. I mean, they trade in a very fragmented environment. You guys know that. We have 100 of secondary market venue for fixed income. It's a fragmented market.
It's very inefficient market. We want to continue our effort to refragment it. And one of the key projects is to create a true trading facility for Dublin listed bonds. The second development on the bond side is the creation of a green bond segment. We're already strong today on the green bonds, but we want to put it forward.
We want to push a true dedicated value proposition on the green bond world. The third one is the improvement of the distribution of the bond listing on the primary market side through some targeted bolt on acquisitions. Moving on to the fund side. We have a successful trading facility on the Dutch bond in Amsterdam. We want to leverage on that in order to scale it up in other locations and in particular in Dublin, where we are very strong in the pond business.
Also, there is a subsidiary of Oslo VPS called Sentebo. It's based in Stockholm, and they provide efficient services to asset managers. We want to take SensiVos business and scale it up. And last, our ETF franchise is very much developing into a centralized trading venue for all ETFs in Europe, whether they're listed on Euronext or not. We want to expand that and make it a true European Derivative, and Simon is going to take you through the central block of trading.
Thank you.
So
thank you very much, Anthony. So my name is Simon Gallagher. I'm going to look after our secondary markets in terms of cash trading and the derivatives business. And so with Chris, we're just going to start talking through the secondary markets, which are built on the very strong listing that Anthony took you through. And so if we just move first to a snapshot of our cash equity trading business and the health of this asset as it is today.
And so what I'd like to do Stefan spoke earlier about the strength of the federal model. And this is just not words. The strength of the federal model actually translates into concrete business terms in the way we operate our cash Equities business. And so we believe the federal model provides a very unique and very difficult thing to replicate in terms of competitive advantage. Is very difficult for a Chiax, for a Turquoise, for an LSE, for a Deutsche Bahrse to replicate the magic we have in terms of the trading business.
And we believe it's unique for the following reasons. Firstly, in terms of its scale. So we operate the largest pool of liquidity for equities in Continental Europe. In terms of scope, we operate 7 national markets, and we were delighted to welcome Oslo to the family of Euronext exchanges very recently. And in terms of customer base, we feel we have unique base of customers both in terms of types and in terms of flows.
So we have unique relationships with the local member communities in each of our markets. And in terms of the flows that come to Euronext, we believe we have a unique mix of flows from the big international flows coming through the City of London to the electronic liquidity provider market maker flows. But the key thing that is unique to Euronext is the real economy flows which come through the members of each of our local exchanges. And so all of this business sits on one unique rulebook and one unique trading technology. And on top of this sort of unique asset, we apply a business model which we believe generates sustainable profits for the group.
And this business model is based on a ruthless pursuit of 2 KPIs, and these 2 KPIs are yield and market share. And so in terms of market share over the last strategic cycle in a very competitive environment, we've raised our market share from 61% to 66%. And in the last reported quarter, it was 69%. And in terms of yield, which is the average price we charge for trading on equities in Euronext, we've maintained that stable over the last strategic cycle from 0.5% to 0.51%. And again, in the last reported quarter, we managed to get that up to 0.54%.
And I'll explain later in the workshop more the details about how we do that. And so in summary, we operate a market model that is at once centralized and decentralized. It's centralized in terms of the focus on yield and market share management and is decentralized in terms of our focus on local customer needs and local customer flows. And so next, I'm going to move to the volume environment. So I spoke about yield and market share, which we have a very strong control over.
But in terms of the volume environment, this is something which we don't have enough we don't have full control over. And so you all have your models and your magic formula to work out we'd all like to have the magic formula to work out what equity volumes are going to be coming forward. We have no magic formula for this, but these are the things we look at. And there are 3 groups of things I'd just like to comment. The first is that over strategic cycles, over economic cycles, what we observe is that the fundamental driver of equity volumes is economic growth, which translates into corporate performance, which translates into performance of equity markets.
And so as Stephane said, we're certainly entering more uncertain economic times. But we believe with the recent announcements of the ECB that economic cycle is certainly going down, but it's going to remain positive and favorable to our business going forward. The 2nd group of drivers are drivers of much more short term volume movements and this is very much based around volatility. And we all know that equity market volumes are no longer reacting to the tweets, to the trade wars, to the Trump tweets and so on as they did in the past. And so it seems like we're having a different relationship to volatility than we did in the past.
And we believe this, as Stefan referred to, the rise of passive management, but it's also to do with the huge automation of these passive management strategies. And it feels in the market these days that the unemployment announcements, the jobless rates and so on are very much already priced in by the algorithms and the automated strategies of the big hedge funds. And so we're beginning to have a different relationship with volatility. Certainly, over the last quarter, we saw volumes really, really boosted by volatility, but it's going to be less of a driver going forward. And the final thing as we move forward into the next cycle, we think we've got some positive trade tailwinds from the recent announcements of the European Central Bank in terms of quantitative easing and interest rates.
And so as Stefan referred to earlier, low to negative interest rates environments, we believe will create a positive environment to operate our business from. And so that's it for the macro environment going forward. I'll now turn to the industry trends. And so this chart simply lays out the way equity volumes sorry, it's a bit aggressive lays out the equity volumes and how they split up in Europe. And so in the blue at the top, you have the dark bilateral OTC spaces.
And at the bottom and the gray, you have the lit multilateral type markets. And there are just three things I'd like to highlight here. Since 2012, overall, the balance between dark OTC and lit markets from which we extract value has remained broadly stable. And so you see where this gray line goes. And so nothing much has changed since MiFID 1 and not a lot has changed since MiFID 2.
So within that lit category, the thing that is very striking is that the percent of business being done on the MTFs, so on SIBO, Turquoise, Aquis and so on, has not managed to pass more than a third of European lit volumes. This has been a very, very stable stagnant segment of the market over the last 7 years. And so we see nothing that's going to make that change going forward. You hear a lot of noise about periodic auctions, and you can barely see it. There's a small black line here about periodic and we'll address this this afternoon.
This is a very minor feature and nothing to be too concerned about. We could launch periodic auctions in 2 seconds tomorrow. There's nothing special about this functionality. But the fact it is just not material enough to address and to be in this space. And so going forward sorry, and the last thing after MiFID II, you've heard a lot of noise about systematic internalizers.
All the innovation and fragmentation that has occurred after MiFID 2 has occurred in the dark and OTC and bilateral space. We've seen a big recategorization of OTC volumes to broker driven SIs. And within that, there are a small group of ELPSIs, which only make up around 2% to 3% of business. So overall, we think in terms of the secular trends and the way volumes are breaking down, we're in a pretty good shape with respect to our core multilateral businesses. And so next, I'd just like to talk about where we're going to take this business going forward under the Let's Grow Together 2022 plan.
And so the first thing I want to emphasize is that in terms of focus on yield and market share, it's going to be more of the same. We're going to have a ruthless, obsessional preoccupation with the maximization of the product of yield and market share. This is the core of what we do. But there are 3 very different twists and things we're going to implement on our core Equities business going forward to support the new 2022 strategy. The first is to do with the federal model and really reinforcing this as a source of competitive advantage.
And so in the trading business, we're going to interpret a very strong restatement of the federal model. What does that mean? It means a focus on real economy flow. Of course, the flow from the global brokers and the market makers is going to remain what it is and very important. But we are going to focus on real economy flow, on institutional flow from the buy side and on flow from retail end investors.
2nd, what does this mean in terms of customer priorities? Of course, the big sell side firms and the ELPs are going to remain at the core of our preoccupation, But we will have a renewed focus on the needs of the communities of the 7 markets we operate in. These are our unique customer base, which our customers which our competitors will have a very hard time replicating. And so that's for the federal model. Just to give you an idea of one example of we're doing the federal model, we have secured every single retail broker on Euronext is connected to our service called Best of Book.
So we provide a one stop shop retail flow. This has secured retail flow at the heart of Euronext and the amount of business coming from retail firms has gone up from 5% to 7%, and we will carry on doing this type of thing. The second is to do with the value chain. So Stefan spoke earlier about the contraction of the value chain, about how the buy side is becoming closer and closer to the market infrastructures at the other side of the value chain. And so we believe this provides us in a very pragmatic way to form new touch points either commercial, tariff, product driven with the customers of our customers.
And we will do this in partnership with the large sell side firms who will remain the gateways to our markets. One example of this, recently we were the 1st exchange to introduce a direct fee scheme, so a direct commercial arrangement for the largest hedge funds sitting behind our sell side firms. And this type of fee scheme is called Omega, creates a win win situation in which the sell side intermediary commissions, we incentivize incremental volumes from the hedge fund behind. 1 of them tripled their volumes on our markets, and we get more market share, albeit potentially at yield a neutral level. And the third thing is to do with the market models we operate.
The operation of multilateral lit markets will remain the core of what we do. It's our bread and butter. But there's been some interesting opportunities opened up in that by MiFID II. And we're just starting to explore new market models in the gray bilateral OTC space, which will complement our core markets. And we believe we can do some very interesting things there to improve the SME liquidity, which Anthony referred to earlier, which is so important.
And we are going to do this in partnership once again with those communities of trading firms around each of our 7 local markets. And so that was it for the Equities business. And now I'll move to the Equity Derivatives business. And so the Equity Derivatives business we operate is built on the very strong position we have on the equity underlyings in the secondary market. And so this is a very solid material franchise, generated €44,000,000 in trading fees last year and €55,000,000 in clearing fees under the clearing contract arrangements we have with our post trade provider.
And really the strength of this business is built on 3 pillars. The first pillar are the big index future contracts we have on the national indices we operate, especially the CAC 40. The CAC 40 future is the 2nd most liquid future in index future contracts in Europe. The second group of contracts we operate is the French individual equity options business, which tends to be traded more by institutional customers. And again, there, we have a strong market share to which we have added 5 market share points over the last month in some changes we've made to market model there.
It didn't cost us anything. And the 3rd key component of this business is the unique franchise we have in the Netherlands. And so in our Dutch options market, it's unique in Europe. There is a unique interest from end retail customers in that market. And those retail firms, those retail customers will be placed at the core of the strategy going forward.
And so in terms of where we're going to take this derivatives business going forward, it's going to be very similar to the cash business. So more of the same, striving for excellence in yield and market share. But most importantly, our customers are going to undergo a step change in their experience with Euronext before the end of the year. As Stefan and Antonia referred to, we're going to upgrade our core trading technology for derivatives to the new OPTIC trading platform. And this is going to really unleash new possibilities for our market makers.
There's going to be no longer limits on the amount of on threshold limits on the amount of orders firms can submit to our market. So we strongly believe the quality of liquidity in these contracts is going to improve. 2nd, we're going to secure the natural retail flow wherever we can. We've already started work on that in the Netherlands. And most interestingly, in terms of product launches, we can be very pragmatic.
And so where we are in a position of strength, so in the CAC-forty contract, we have started to launch and will continue to launch adjacent products around that pool of liquidity and crucially around that pool of open interest at the clearinghouse. And so one thing we've done recently on the with the CAC-forty franchise is to introduce total return futures. And this is going to be a very big material market for us going forward. There are 8 customers already trading, but this provides real value for the customer because they can leverage the clearing efficiencies. Similar story for single stock dividend futures.
We launched those in the last few weeks with huge, huge success. And so that will be the theme going forward in the derivatives markets. And so if we just take a step back and we imagine ourselves in 2022, where will this franchise sit overall for cash and derivatives? So first, as I said, we will maintain our excellence in yield and market share management. But we will have developed new points of differentiation, which will generate returns for shareholders.
The first will be deeper relationships with our local firms in each of our markets. Second, more variety in the market models we offer and third, more innovation from positions of strength in the product group. And so on that note, I would like to hand over to Chris Toppold, who is CEO of London and Head of Sales, who's going to talk you through the commodities and data businesses.
Thank you, Simon. So yes, in addition to my sales responsibilities, I also manage our commodities business, our ForEx business and Advanced Data Services, which I will run you through today. Following in line with what Simon said in terms of the cash and derivatives business, the outlook for the three business we're going to talk through now is that they are all strong franchises off the back of which we can develop new sets of suites of services and products. So firstly, the commodities business. The commodities business is the yes, it's the preeminence, the leading European marketplace for agricultural products.
And it remains the source the global reference price for European agricultural contracts, really driven by 3 core derivatives contracts: the corn, wheat and rapeseed. This is a very liquid market 580,000,000 tonnes traded in 2018, over 4 times the underlying wheat production in Europe. The core to this market is really our proximity to our underlying customers. The underlying consumers of the core underlying product. The reason why we managed to retain the franchise with these corporates is the delivery locations that we have.
Having delivery locations around France allows us us proximity with those underlying clients. Off the back of that, we're now developing new pricing franchises to deliver this franchise to new financial entities. What is our core sorry. How are we going to grow this franchise going forward? When we look at what the market developments are, there is a requirement an increased requirement for electronic delivery platforms for the demand for agricultural cash settled products and also for real estate futures.
What we've sorry, one moment. In order to defend the core franchise, we are taking 4 key steps in terms of delivery. Firstly, is to develop the electronic delivery platform. This will allow us to defend and grow the core franchise to allow trade finance, repos and location swaps to drive revenue diversification and most importantly, allow for new products to extend our delivery network. Secondly is to develop cash settled products.
The majority of our agricultural products at present are very much physically delivered. So they are physically delivered products, which are very appealing to the underlying core producers and end users, but do not attract the hedge funds or the financial counterparts. So with LCH, we are delivering cash settled products, which and the first of this has been the delivery of the real estate futures, which we launched earlier this year. The 3rd section is around diversifying our product set. With the integration of Oslo BOSS, as was alluded to earlier, we have a strong salmon and salmon derivatives franchise, which we will continue to grow on.
In addition, Oslo is a center for commodity excellence in terms of oil, gas and shipping and it gives us the ability to then be legitimate owners for further assets in the commodity space. And lastly, to diversify our client approach in terms of looking to increase this franchise outside and beyond, as I said, the core corporates that we operate to target new customers outside of that core franchise, targeting new geographies, specifically up in Northern Europe, Eastern Europe and into the U. S. In terms of new geographies, that is really what our next business is around, our FX business. This here we have a strong spot franchise with plans then to deliver and diversify the client base through product and geographical expansion.
If you recall, Euronext purchased Fast Match in 2017, and it was rebranded as EuronextFX earlier this year, which really completed the integration of this platform. Since the integration, EuronextFX has continued to grow volumes, it's continued to grow in market share and it's increased profitability during a period of historically low volatility in the FX market. It remains the number one pure FX spot venue globally with over €20,000,000,000 traded on a daily basis and now managed out of 4 matching engines. As part of our increased investments in this platform, we launched a new trading engine in Singapore earlier this year. Also you see at the bottom of the in the bottom chart the continued transition from the legacy Central Limit order books and direct bilateral platforms across to the ECNs that we operate.
And we believe our superior technology enables us to further leverage this transition and this trend that we are seeing. So how are we going to develop further develop the FX suite of products? Firstly, in terms of what we're seeing, there has been a dramatic increase in the electronification of FX derivatives trading. We've also seen the evolution of Singapore becoming the EFX trading hub for Asia and then the growing request for data. So in terms of launching new products, as I said, Singapore has provided us with a framework to then launch new products, new derivatives products in 2020.
So we will go live with derivatives and NDFs in 2020. We'll also continue to expand our data offering and capitalizing on the leading technology solution that we have. Expanding into derivatives also enables us to expand our customer base. Cash the spot FX has very much been focused on the banks and the call it liquidity providers. Extending into derivatives allows us to then go after the hedge funds, the asset managers to further diversify our client base.
A key thing on Euronext FX and Fast Match, I think Stefan alluded to our ability to integrate core assets with into the Euronext Group. What Fast Match or Euronext FX has demonstrated that we are able to also demonstrate to integrate non core assets into the Euronext platform to invest in them and to diversify them and to leverage the client base that we have across Euronext to further expand these businesses. Moving on to data. Data, again, one of our core pillars of Euronext, a robust business in terms of close to €120,000,000 of top line revenue represents around 20% of the top line of the firm based off a very robust infrastructure. You see by the numbers over 120,000,000 120,000 screens in 120 countries distributed by over 440 different vendors.
We've also off the back of this core data has enabled us to develop a broad suite of indices with over €7,500,000,000 of ETFs launched off the back of the Euronext indices. We also continue to diversify the products and integrate the new acquisitions that we have most recently Euronext Dublin and we will do the same for the Oslo Bulls going forward. How will we capture the value from the market data that we have? Euronext itself retains some unique selling points in terms of being the reference price for over 1300 stocks and 500 indices. We have access to the unique depth of the order book on all of these securities and the golden copy of all the corporate actions.
So what we're doing now is look at what products and sets of data we can produce. We recently launched sorry, with the transition of the equity markets onto the Opti platform, enables us to deliver low latency market data feeds to further develop products for the one of the most recent products we launched, the Market Flow product. This is the aggregation of the orders coming into the order book for onward distribution to the low latency players of quant funds and hedge funds. In addition, there has also been with the increased scrutiny from a regulatory standpoint, we have developed tools and systems to be able to ease the customer burden to comply with the rules that are required in this space. And lastly, Euronext again is a very, very different animal than it was before.
It's a far broader set of products and services that has been developed through the acquisition of different assets. And as a result, we have a far greater access to a greater set of data. So we'll continue to develop analytic products based off the new data that we have. Good example being Dublin in terms of the fixed income franchise that we have there and our ability to have access to that data and provide data sets for monetization. Lastly, the index business.
Again, the idea here is to that we will build off the recent successes that we've had in this space. Currently, Euronext runs 2 of the top 5 underlying indices for structured products in Europe. The futures on the CAC-forty as alluded to by Simon are the most 2nd most traded future in Europe with EAX being the 4th. We have the strong presence in ESG indices. We are the leading provider of ESG indices in Paris sorry in France and also run the largest or the number one ESG ETF in Europe by AUM currently at about €750,000,000 The next stage of the development of our index business is to expand the geographical scope of our products to launch global indices.
We'll be launching U. S. And Asian indices specifically targeted towards our European customer base. We'll continue to accelerate the development of the ESG based indices and then also invest in technology to roll out and be more agile in terms of our speed of delivery of new indices to the underlying clients. So all three of these businesses, the message here is that they are sound robust businesses.
The commodities, the ForEx and our data businesses off the back of which we will deliver new products and services and extend our product reach in doing that. None of these products and the products alluded to by Simon are possible to run without sound technology and a sound clearing solution. So I'll hand over to Anthony to outline our expertise in post trade and technology.
Thank you, Chris. Thank you, Chris. So this is the last block building block of our value chain. I'm going to talk about post trade. I'm going to talk about technology solutions.
So another misconception of our industry is to think that without a clearinghouse, you don't have any post trade business. It's not true. So let me walk you through our different post trade assets. And the idea we want to share with you today is that you can go from a collection of post trade assets to a true business line. We can grow that business line even if we don't own a clearinghouse.
And we want to take that step by step. So first of all, the postpaid franchise at Euronext today covers around €130,000,000 revenue. So it's 18% of the top line base. So we do have a post trade business. And it comprises of 2 CSDs, so 2 central securities depository.
1 is Interbulsa in Portugal and the second one is VPS in Oslo. These years, these are deeply rooted into their local ecosystem. They provide vital services to issuers and investors and financial sector actors. And both of them cover around $1,000,000,000,000 of assets under custody, which is usually the threshold point in this where you can start building services and you can start expanding. We touched 175 direct clients.
Usually, it's participants of CSD Banks. And we also have 1600 issuers of equity debt, and other products we are using on a day to day basis, the CSD services. Moving on to our stakes. We have strategic stakes in Europe here and in LCH S. A.
With governing rights. We are present at the board. And we also have around €10,000,000 of equity stake revenues every year from these participations. 2 years ago, we have rebooted our relationship with LCHSA, and now we enjoy a 10 year long term partnership with them that is the provider of around $55,000,000 of derivative clearing retrocession revenues. So this is a collection of assets.
And our ambition, our goal, and we have a plan for that, is in the next 3 years, we're going to take this collection of assets through a true business line, and we're going to take it step by step. So several areas. The first one is the European landscape in terms of CSD is highly fragmented. You have roughly 30 CSDs in Europe that are all dependent on CSDR, and a lot of them are targeted to securities. So this creates a lot of inefficiencies, and this creates a high cost of infrastructure and back office processes for our clients.
Our ambition is to use our DNA, to use our know how in terms of operational excellence and technology and the ability to create services to the local ecosystem and connect them with global players in order to take the CSD business into the Euronext of CSD value proposition in Europe. The second objective of the 2022 Let's Grow Together plan on post trade is to leverage our client relationship and technology to deliver a range of post trade solutions. We see a huge demand from clients for more automation, for more streamlined processes, more digitalization of post trade processes. And you don't need to be regulated. You don't need to have a banking license in order to do that.
So we want to develop that leveraging on our relationship with the ecosystem. The 3rd area is obviously to capture opportunities arising from digital assets. We talked about that earlier. We have 2 stakes in 2 very strong players in the digital asset disruption. The first one is LiquiCare that we co founded with some actors from the ecosystem.
And Liquidshare is aiming at providing a blockchain post trade solution for less liquid instruments. The other one is tokenny solutions, where we took a state and strong governance right in this very successful primary issuance into securities token offering. And so this is again, as Stephane said, we don't know if our whole industry is going to be disrupted by that, but we want to be there if it happens. And we also believe that there are really strong benefits in digitalizing some of the post trade chain, then this is what digital assets are made for. And last, we have a strong influence in the landscape of post trade infrastructures in Europe through our relationship with Euroclear and LCHSA and also our off stakes in EuroCCP, and we want to continue pressing on this area.
So post rate is exciting. It's not what it was before. It was like the business on the side 20 years ago. Today, post trade is one of the growing key growing assets of our industry, and we want to be present there. Now all this can only be enabled if we are good at technology.
And today, we are good at technology. We're good at trading technologies, and we're good at developing in house solutions in order to empower our clients and our services. So I'm going to cover our technology solutions business, which is actually a historical business of Euronext. We always sold our matching engine solutions to other exchanges or to banks. And today, we have around EUR 36,000,000 revenues coming from the provision of network solutions, colocation solutions, reporting facilities and, of course, trading system solutions.
This is an established business. And today, we have 12 clients, exchanges or banks, who are using our matching engine. And among these 12 clients, 7 of them have already signed to migrate onto OPTIC, and one of them is live. The OPTIC will be the cornerstone of the transformation of this technology solution business because OPTIC is unique, And this is a geek moment of this presentation. OPTIC is great and OPTIC is unique because, of course, it's highly performance.
We talk about 15 microseconds of round trip latency, so it is the fastest trading system that we have in the planet. I'm not exaggerating it's true. OPTIC is also very flexible and very scalable and enables us to cover all sorts of asset classes, from equities to derivative, from FX to cryptos. So we want to leverage on that, obviously. OPTIC also enables us to support all sorts of market models, not just European regulation based.
And so the idea is to leverage on Optik and leverage on our cloud capabilities on data in order to create this community of users around OPTIC, whatever their size, small exchanges, big exchanges, crypto exchanges, banks, etcetera, all these community of users can leverage the power of this platform and will be the supporting ground to grow our technology solution business in the next 3 years. Now I'm done with the series of presentation of the building blocks, and I'm going to hand it over to Stephane, who's going to do a wrap up before the break.
I'm not sure it's a wrap up. Just it's more housekeeping remarks. So we have 15 minutes, 1:5 for break, and we reconvene here in just 15 minutes sharp to cover 3 topics, which I think are very important: what is happening within the engine to transform the company and what we are going to accelerate in terms of transformation of the engine to continue creating more growth and to make more acquisitions. The second thing is to share with you the status update of the integration of Oslo and how value is going to be unleashed from the acquisition of Oslo Borse of EPS. And the third topic will be the framework for our M and A ambitions and the deployment of our capital discipline.
And then we will have a Q and A with the speakers of today. And if necessary, we will involve some colleagues. So enjoy the coffee break, and let's please reconvene in 15 minutes sharp. Thanks. Welcome back.
What we'd like to do for the 2nd part of this morning's session is to spend some of your time on what we are doing internally to transform YourNEXT and what we want to do to accelerate that transformation. What you see on quarterly release on numbers is the output. This is performance. But in order to make that performance resilient real, we need to spend a lot of time and effort on the real pillars and drivers of performance, which are people and processes. And we want to spend some time on that one.
The first thing that we need to do and that we are going to accelerate is the empowering of our people to grow, perform and innovate. Beyond the buzzwords, there is something very concrete. 5 years ago, when I joined, it was very difficult to convince someone to resign from a good job to join Euronext. We were a small company, and we were, by the way, operating on the shed of the mega merger of Deutsche Borse going to merge with LSC, which prevailed until March 'seventeen. It was difficult to attract top talents.
The world has changed completely. We have great people resigning from good jobs to join Euronext because this is where the momentum is. And that's going to be a massive enabler of the growth for the years to come. And the way we are going to unleash the energy coming from those new guys joining forces with the very strong, reliable, robust teams that are committed to the growth of your next 4 years is by focusing on the execution with excellence. The excellence of the execution, the obsession on operations is what makes Euronext very different from the peers.
Euronext is an integrated operating company. It is not a combinator or conglomerate of assets. And because we spend so much time on processes, so much time on people, we can unleash value that others do not unleash. So that's why we have this continuous focus on execution with excellence. The second thing is collaboration.
Again, beyond the buzzwords, there is something very fundamental. We are a distributed company. We speak every day within Euronext Portuguese English, French English, Belgium English, Dutch English, Norwegian English, British English, Irish English. We need to work a lot. We need to polish to focus on the cross cultural management of the teams.
And collaborations with us means a lot because it's more needed than in any other organization. But you know what? Because when you are successful in managing in a very subtle manner cross cultural interaction among peoples, you unleash more value because people don't operate in silos as in other larger combinats. The third thing is risk. I mentioned that at the beginning of the speech, and this is absolutely fundamental.
The recipe for success is where do you put the needle between, on the one hand, the fight against bullshit, the making people accountable. Basically, when you say something, you are committed by your words. And on the other hand, giving them space to try things. And we are going to try harder. We are going to do to test more innovative things.
We are not going to promise as much as we may have done in the past because when you try and you innovate, sometimes you are successful, sometimes you fail. But we want to make sure that there is a framework and a set of incentives for people to be incentivized to be accountable and to be incentivized to take risk. And believe me, that requires time, attention and micromanagement at team level. The other aspect is to empower people. Euronext has been able to be more efficient and to cut massively cost by almost eliminating one layer of middle management and by fast tracking a lot of talents.
We promote people. We give to guys not only the job of their boss, but in many cases, the job of the boss of their boss. And this is the only way you can unleash appropriately the energy within the organization, and this is the only way we were able to be agile and bold more than some of our competitors. The 5th point that I mentioned that to you is the obsession of clients. I made a few jokes about the way investment bankers have to be close to the clients to survive.
This is the same approach that we are using. I'll focus on that in a few minutes. But if Euronext is not a place where you can go if we there are companies in our sector where if you want to increase revenue, you show up to the office in the morning and then you send an e mail to the client, say going forward, the prices are 20% higher, and you are increasing the top line. We don't have the luxury of having those price making businesses. So we have to be more specific, more granular to create value.
And the way we have been so relevant in terms of cash equity trading, as described earlier this morning by Simon, is an illustration of the fact that even in a very highly competitive segment, we can find ways to segment the offering and to adjust the solutions to protect this business. And finally, we have to adopt and we are going to adopt what we call a positive performance culture to better reward people for success. When I joined, 9% of the members of the Euronext teams had long term incentive plans. We are now close to 25%. We are going to continue creating incentives.
We have more people closer to success sharing. And that these are things that you don't see again in the models of analysts, but that behind the scenes, are the glue of performance. The difference between one off cost cutting exercise, I. E, they have been lucky, they have done only the low hanging fruits and making the cost culture and the performance the operating performance culture a reality. The glue is the fact that it translates into the approach of the teams.
The second thing I want to cover is and to focus on is the time we are going to spend to take to the next level the relationship with clients. 1st, we have a new client coverage model. The main weakness and difficulty of large market infrastructures is that they have silos. They have people from different companies within the group visiting the same client or the same buying centers 5 times in a week. Integrating sales with distributed buying centers and fragmented product offering is very complicated.
Investment banks try to do it as much as they can. We have to be super disciplined and successful, meaning it's complicated, but we have no other choice than understanding more intimately the clients. And there is a big inertia in being successful. It takes time because you need to educate the clients and you need to discipline your own teams. But when you can do that, you can anticipate the needs of the clients and you can create this incremental relationship that makes the commercial bond more sticky than if you have no such relationship.
The second element is the co design culture, which is absolutely important. If you want to keep clients, you need to make sure that what you sell them is what they want and that they are willing to pay. So if you don't want to if you want to avoid the, oops, we missed the target, the best way to do it is to pre sell stuff by being closer to their needs. And this co design culture of the offering is most effective way to reduce execution risk when you want to innovate. So it's the other coin of innovation culture.
The third part is the increase of the client intelligence by deploying new tools. As I told you, we are efficient. We are a data company, but you would be amazed by the fact that we could do much, much better in terms of deploying within companies like Euronext, the tools that are used sometimes in B2C companies. When we started to measure the Net Promoter Score like an e commerce company, some people joked. But now it's part of our DNA.
And we are going to continue using tools that are deployed in much more highly competitive environment with much lower barriers to entry because, again, this is the best way to protect your clients. And the final point is to have an agile digital strategy because it's a never ending story. Again, when you are in a low profitability industry, you make efforts to digitalize your process much more than when you are in a high profitability industry. When you look at the details of how our peers operate, you would be amazed by the fact that with very few exceptions, the digitalization of client relationships is not harmonized. You know what?
Because it's difficult. And when you sit in price making businesses, it's so easy to increase the revenues by increasing prices, then you don't focus on these sort of things. We don't have any other choice than focusing on those. And again, this type of focus on relationship with clients, just like the focus on people development, are the glue that make sure that the DNA of cost efficiency is resilient. The third point I want to cover is the focus on the delivery of operational excellence.
I somehow covered some of these items earlier. But one of the very important ambition is calibration of processes. The more you acquire companies, the more you run the risk of having fragmented profitability, the more you have your risk of giving up integration discipline. Post merger integration, integration discipline, calibration up to the average year on standards is what we are going to do. And we are successful at doing, but the big challenge is going to be in the years to come when we are going to change scale further and when we are going to make much bigger acquisitions.
And that requires something which is somehow ambivalent, but complexity is what we do for feeding our families. We need, on the one hand, to calibrate what can be calibrated, to integrate the technology platforms as much as possible, while at the same time not suffocating the assets we onboard by giving them space to remain performing in what made them different and unique before we acquired them. And it's easier to tell than to do. We have been successful so far. We have made a few mistakes.
We have learned from those mistakes. And because it's the big difference between the ones who learn from the mistakes and the ones who don't learn from the mistakes is when you spend time on accepting. But when you run from one acquisition to the others, hoping that the market will forget the performance of the previous one to focus on the new ones. You don't do this sort of thing. This is not the way we work.
We try to fundamentally integrate in a disciplined manner each acquisition, and that is going to be both a focus and a challenge that will take a lot of our time. The second one, as I said earlier, I won't cover that point again, is the focus on the client service integration, which means many different things, including accelerating and making the client journey smoother, improving the time to market. One thing most exchanges are bad at is being quick, being agile. We have tried to be agile. On many dimensions of our business, we are agile.
But on our few others, we are still slow. And in the areas where we are slow, we need to change gears and to find ways to invent shortcuts or to reinvent completely the processes. And again, when you are a large combinator, you don't focus too much on this sort of thing. But this focus on time to market is what is going to make the difference between beating the niche players and being and bearing their actions. And I mentioned earlier the client journey becoming more efficient.
And that, at the end of the day, translates its very strong pillars. And believe me, we spend as much time in what I've described today as we do on what we have described this morning because without that, the performance is a combination of luck and lonely wolves drive. What the difference between what you have seen this morning and resilience 60 plus percent EBITDA margin is success on that. If we fail on that, we won't have 60%. If we succeed on that, and I think we will succeed on that because we are organized and minded because what I'm describing to you is the mindset of the company, completely differently from the others.
If we ask as well, we will do 60% -plus of EBITDA margin. And those three work streams are to enhance the core practices to become more agile. And agility is a never ended effort. By default, companies are not agile. By default, people do more of what they are good at and don't try complicated things.
By default, companies become slow. So agility is more pressure to people, more relevant incentives, better portfolio governance. The most complicated things in any industrial company is portfolio management, is PMO, it's PMO and project management. And we are spending a lot of time to upgrade, to take to the next level project management because we need to do that. And we need, in particular, in terms of portfolio management, we need to make sure that this same culture is shared across the group.
The second work stream is about leveraging the new technology backbone. We have invested a lot of money, a lot of effort, a lot of focus, a lot of management time, a lot of nerves, a lot of energy on developing OPTIC and deploying it across market data dissemination, cash equity trading and in a few weeks' time, derivatives. This is a unique asset because we are one of the few exchanges owning our own technology platforms, because we are the only exchange with such a brand new white page freshly produced technology backbone and also because it offers plenty of possibility to attract value beyond an over just the fact that it's an acquisition currency that wherever we will step in, in terms of other exchanges, we have this embedded very powerful synergy, which is not debatable, which is the switch from the previous legacy aging technology to the fresh Euronext in house technology. And we need to use that to create a completely new digital infrastructure. And finally, we want to expand the entrepreneurial and federal culture.
The federal culture of Your Next is its most valuable assets. The way we are capable of having people in Oslo, in Dublin, in London, in Brussels, in Amsterdam, in Lisbon, in Porto, in New York feeling part of the same group in a very coordinated manner. Never forget that we are not a huge international organization. We are a small organization of 1,000 people. So we need to spend time making sure that people are bound by the project.
If we are successful in doing that, we are one of the most powerful organization because we can make cross border acquisition successful. We need to expand the digital culture across the organization. And people don't like to enter their what they have done over the day in a system. They need to feel that if you report something, it exists. If you don't report it, it does not exist.
And this is only by the sharing of information that we will transform the engine. I keep telling the guys, if you know something and Euronext doesn't know it, you know nothing. That's absolutely fundamental. You cannot integrate you cannot run an integrated operating organization without that strong focus on information sharing. And it's not enough to put a CRM in place.
All of your organizations have great expensive CRMs on the screens, and hopefully, 10% of your staff uses it. And the rest feel too smart to waste time on that. So we want to make sure that this culture is deployed. And the first material test is going to complete the Oslo BOSS VPS integrations, where we are very enthusiastic to work with our new Norwegian colleagues who are showing a lot of enthusiasm to become part of Euronext. But we're because it's the largest cross border deal we have done so far with a significant number of employees, with a diverse group of assets, where we need to focus to in deploying all this dimension.
So without any further delay, I want to give the floor to Georgio, who is going to share with you the ambitions in terms of growth in Oslo and beyond in our M and A framework. Georgios, over to you.
Good morning. Hello. Good morning, everyone. I'm glad to see how many of you joined us today in Paris for our Investor Day and to bet for the one who didn't as they will not enjoy with us one of the few free lunch after MiFID II. I am Giorgio Modica, the Chief Financial Officer of Euronext.
I speak Italian English, and I like my job. One of the reasons why I like my job is because I spend time with you, with analysts and with investors in the roadshows and conferences, and we discuss about the strategy. And we always end up speaking about external growth. So this is the subject I will cover today. And before focusing on the wider ambition of Euronext and on the integration of Oslo Bors VPS, I would like to ask myself a few of the questions you often ask me.
The first question is why Euronext is so successful in the cross border domain where other exchange failed. As you know, the battlefield of cross border merger is very tough one. And so far, we have been very successful in 2018. We have acquired Dublin and now it's fully integrated. In 2019, we have acquired Oslo BPS.
The reason of the success in Madrid is simple. 1st, we are more motivated than other exchanges because this is key for us. The second element is because we are better prepared. We work harder. And the last one is that we have a model that works better.
We have a better value proposition. The federal model is not only alive, but is, as Stephane says, a source of competitive advantage, which is sustainable. It is international and decentralized by design. The second question that goes together with the first is, but then why are you interested in making so complicated transaction? And the answer for that is simple.
We have a vision. We want to build a coherent pan European market infrastructure to better serve our ecosystem. The second reason is that because we want really to strengthen public and transparent market against public market, which are emerging today. And finally, because every time we buy an asset, we are better owner for that asset, which means that we can improve liquidity, improve the operational efficiency, and this means that we can create value for the shareholders. And Oslo BORSE is a perfect example of that.
Let me go through some of the key highlights of this transaction. 1st, Oslo has leading position in oil, shipping, fixed income and commodities, and we will leverage those elements to make even stronger Euronext as a central hub for the financing of the real economy. As Anthony mentioned, we have the ambition to strengthen Euronext in post trade. And in this respect, we will create the Euronext of post trade or CSDs, as Anthony says. And we will invest and we will develop solutions and value added solution for our local and global clients.
Then we will make the Oslo BPS market more relevant because we will improve the liquidity not only for the large cap, but as well for the SMEs. And we know how relevant and important it is to finance SMEs. The 4th element is that we have strong ambition for the Nordics. And Oslo BPS is going to be our launchpad for the Nordics. And finally, but is one of our key priorities is that we want to develop a common mindset and culture.
Today, Oslo BPS is a subsidiary of Euronext. We want to make it as quickly as possible an integral part of the Euronext group. And now I believe that there is a moment you have been waiting for a while, the numbers on synergies, but you have been waiting for a couple of months. I will let you wait a couple of minutes more, if you don't mind, because I believe that the way we go to the numbers is equally important to the numbers themselves. And we started from the principle that Euronext is a bottom up joint venture of regulated markets, and we designed an integration process, which is aimed at giving equal representation to Euronext and Oslo BPS.
It is long, sometimes painful, but is a source of value. So this effort is led by Howard, the CEO of Oslo, BPS and myself. And the same principle of equal representation is carried out throughout the whole process at all level and all steps. This is key for the common mindset that we want to develop. Euronext is about empowering local ambition rather than replace those ambition.
And this is also important for you because it derisks the delivery of the synergies. Those synergies you will see in a moment, don't flip the page on screen, are bottom up synergies and therefore, in terms of deliverability, I believe the level is quite high. So the numbers that I will show with you are €12,000,000 of run rate cost synergies, so it's slightly above 20% of Oslo, BPS and the loan, EUR 18,000,000 of restructuring costs. And clearly, the objective of having a return on invested capital higher than the cost of capital in year 3 is maintained. There will be 3 elements key to deliver those objectives.
The first one is technology. The second is operational leverage. And the third one is cross sell. Let me start with the first one. Migrating to OPTIC is much more than a technology upgrade.
It's about getting access to the Euronext liquidity pool, which is the largest liquidity pool in Europe. This means key value for Anthony in order to attract and retain company on the listing front. This is key as well for Simon to improve trading. Moving to the operational leverage. It's clear that Oslo BPS will be able to leverage Euronext financial resources, IT resources and all the support functions.
And finally, we would be able to sell a wider range of services to a wider list of clients, and this is going to be key. Oslo BPS, it is a success, but the ambition of Euronext goes above Norway. And the element that I would like to confirm today is that M and A is going to remain one of the key ambition of Euronext for the next 3 years. So far through M and A, we have been able to diversify the business mix, optimize the financial structure of Euronext, give opportunity to our employees. And today, Euronext is much better positioned to deliver growth than it was in 2016 when we launched Agility for Growth.
But this is not sufficient. We remain small, and our ambition is to get larger, increased scale, and we would like to grow and diversify. The first element that I would like to highlight is that we would like to complete the transition from a leading pan European exchange to a leading pan European market infrastructure. We believe that we are better market operator at the time where market infrastructure in Europe remain fragmented, lacking of liquidity and operating at the level of efficiency, which is suboptimal. This will give us opportunities.
We want to increase scale to reduce the gap with our peers. We want to increase scale because, as you know, we operate a fixed cost business and scale means more profitability. But we also want to diversify. We want, as you see on the screen, to take the recent success to the next level, especially in corporate services, FX, index and market data. And we want as well to develop new growth areas, especially in the domain of post trade, as we discussed, investor services and other asset classes.
Our ambition does not end with bolt on acquisition, but we are also looking at transformational deals, both in terms of expansion of the federal model and looking at pure diversification. However, our ambition is very strong, but we will remain disciplined. M and A will remain a tool and not an objective per se, which means that we will commit 2 things. The first one is that we will not invest in any asset that we will not be able to deliver a return above the cost of capital based on a conservative business plan. And the second one is that we commit to maintain a strong investment grade.
This means that depending on the size of the target, we will consider as well equity financing in order to maintain a balanced financing mix for our organization. This is as far as I can get in giving you guidelines. And the reason for that is that, as you know, M and A is volatile by definition. We cannot say when it's going to be the next deal or whether the next deal is going to be growth or diversification. Deals that are signed today might never close and assets which are not available today might become available tomorrow.
And but this volatility, to a certain extent, did teach us the fact that we need to be prepared. So this is the last commitment I can give you is in the next 3 years, we will be ready to execute when the time comes. And before giving the floor to Stephane for his final remarks, I would like to thank you all in this room, the one that follow us online and the teams in Euronext because your support has been key to deliver the results that we have been able to achieve so far. So please stay tuned. The best is ahead of us.
Thank you. Stephane?
Thank you very much. So we are going to have a Q and A session. I think what we have tried to convey is both simple and a source of energy and enthusiasm for all of us. What the simple part is that we have achieved a lot. We have a company today which is massively more robust, more stronger and more self confident than what it was 4 years ago.
We have all the pillars, all the seeds of success, and what we want to do is to accelerate growth, to deliver scale to what we are trying to achieve and to make sure that in terms of post merger integration, we really are in a position to integrate much bigger assets going forward to diversify our top line or to grow significantly in the consolidation in the European market. So this is a combination of preserving, protecting, fostering, defending the core cash machine of Euronext and being available, agile to strike and to capture any transforming opportunity that can come if and when they come. And I think the way we deploy that across the organization, we share it at every single level of the organization, makes us very different from the other players in our industry. Your NEXT today is nothing that anyone would have imagined at the time of the IPO. Believe me, no one in this room can imagine what it will be 4 years from now.
So without any further delay, I'll ask my colleagues to join me on this floor, and we'll take all your questions. I understand that there is an arrangement for people who are following us on webcast to ask questions if they wish. So gentlemen.
So the floor is yours for your question. I don't know who wants to start.
Maybe for the benefit of the group, you can just when you take the floor, mention your name and your organization so that people I mean, you are known, but maybe for the rest of us.
Thank you. Yes, it's Arnaud Gilbert from Exane. I've got 3 questions at first, okay? 1 by 1. So you talked about trying to go into trading of corporate bonds.
A number of your peers have actually launched platforms in those to trade corporate bonds and those have been unsuccessful. What lessons have you learned? And what are you doing differently to try and make yours a success? And is there perhaps any external growth opportunities to try and accelerate that growth in corporate bond trading?
Okay. So Anthony is going to take that question.
Yes. Look, as I explained earlier, the trading of corporate bonds is highly fragmented. You have hundreds of platforms out there in Europe, in the U. S. We have learned a lot from our past initiatives around Bond Match and others.
We understand that in order for liquidity to be aggregated on the world of corporate bonds, we need to have the right market models, which obviously is not disintermediated, but needs to answer to buy side needs. And we also need to have the right targeting of the product and the client base. So this is why we are we want to focus on the Irish WCD bonds in order to Irish listed bonds in order to focus and build success around that before extending it to other markets if relevant.
Okay. Thank you. My second question is on indices. Could you give us perhaps an update of what's happening with Morningstar? I think you had reached an agreement to develop indices with them.
Is there anything happening on that front? Morningstar indices?
Indices? Yes, with Morningstar. Morningstar.
I think the what we've taken lessons that we learned from Morningstar. That was an initiative that we launched to diversify our index products. As I think you saw from the presentation, we successfully done that in terms of pushed out into both launching some of the most distributed indices for the structured products in Europe with some of the number one ranked index there and also branching out into the ESG. So the specific initiative with Morningstar, I think did not develop in the way that we hoped. I think that what we learned from that is we need to 1 develop products ourselves.
I think we have the capability. We have the underlying data to be able to develop those. And 2, to partner with very large organizations where perhaps it wasn't such a priority for them versus what it was for us. We need to I think we've learned from that. We did the analysis from that and decided that we have a far more powerful franchise in terms of what we can do individually ourselves.
Okay. Thank you. And my final question is on you talked about tech SME IPOs. Can you talk give us maybe a figure of what market cap you currently have listed coming from Germany, Italy and Spain?
Thank you for your question. So we have invested in creating pipeline in 4 non domestic countries, which are Germany, Switzerland, Italy and Spain. And each of these different countries have different ecosystems. And so as you guys know, to build an SME market, you really need to tailor maybe offering depending on the ecosystem. So what we see in Italy and Spain is we have a high success rate terms of transforming this pipeline into IPOs.
There are small IPOs because we need to start with that. But guess what, the capital market is not just for large caps. And it's more taking more time in Germany and in Switzerland just because the ecosystem needs to get used to have the choice. But we are confident that we're going to transform that into a bigger pipeline in the coming months and years. So this investment is easier to stay.
There will be some larger caps that are coming to the market. But obviously, they're waiting for the IPO window to be reopened.
Okay. Thank you.
Yes. It's Albert Plueger, ING. Two questions. 1 on M and A, 1 on your outlook for growth in terms of the revenues. On M and A, on the transformational side, I hear what you're saying, and we all know it's difficult to predict anything in terms of timing.
You also mentioned, let's say, potential equity raising. Of course, if something happens it would happen in the short term, I understand. Has this plan or, let's say, ambition already being discussed with your reference shareholders? And are they on board and potentially willing to dilute, for example? That's the first question.
The second one is on the revenues. It was an interesting comment you made on, let's say, the overall financial targets that you basically going to promise less in terms of absolute number of targets and make the communication more simple. I know in the past you had this Agility for Growth program where you've got every quarter a question on where you were and what was going well and what was going wrong. But if I look at your 2% to 3% target, yes, innovation is still higher on the agenda. So how should I look at that in terms of level of conservatism?
What do you build in there in terms of, let's say, the innovations and where you want to bring the group to? I appreciate it will not be in a quantitative answer, but it's preferable or, let's say, a qualitative answer will be helpful as well.
Okay. I'll answer all your questions. The numbers you have in terms of top line growth as well as for EBITDA target are blended numbers for the existing perimeter, including the core legacy business and innovation products. The big difference, as you pointed out, between Agility for Growth and this plan is that we are focusing more on overall blended numbers and less in granular targets as we have done for last year last time for selected organic growth initiatives. Well, since you are referring to Agility for Growth, let me use that opportunity to remind everyone that we have delivered all the targets except some of these small selected growth initiatives 1 year ahead of schedule.
We're supposed to deliver EUR 20,000,000 of cost reduction by the end of 2019, and we delivered EUR 22,000,000 by the end of 2018. We were supposed to deliver for the core 2014 business 61% to 63% of EBITDA margin by the end of 2019, and we delivered more than 61% by the end of 2018, etcetera. So the process of learning has been extremely fruitful. We are going to innovate as much as even more than we have done last time. We are going to try new things more.
But when we are not sure about whether we will be able to migrate the liquidity to those new IDs, we will be more cautious and therefore, we won't create expectations. So I don't know whether this covers your these answers your qualitative questions and whether my qualitative answer is satisfactory. But it's a blended number, including innovations and including innovations that will be successful and innovations that will be that will fail. On your first questions, the we have a dialogue with our reference shareholders, which is consistent with applicable laws and regulations in the Netherlands to make sure that they are not private to the market. But we have been clear to the markets that if and when we have an opportunity to do a significant transforming transaction, we will first saturate the amount of debt available within the bandwidth that we have shared with you, A- today to strong investment grade BBB plus And then if needed, we will go to shareholders.
We have significant indications from various sources that some of our investors are very eager to be part of this new phase of the Euronext voyage. And the reference holders will you would have to ask them the question, but I assume we'll consider that opportunity in the grand scheme of their own home allocation of capital according to their own strategy. So I don't want to comment on what they may or may not do. Thank you. But they are pretty aware of where we are, obviously.
Yes. Benjamin Goll, Deutsche Bank. Two questions, please. First, on your cost management, you say best in class. Maybe you can highlight a bit more what you mean in that and how you take the revenue environment into consideration.
I guess fast tracking investments is always possible, but in an adverse case, what are your mitigants? And secondly, you bought another asset or you bought more pretax profit in a country with a lower statutory tax rate than your group. Maybe any thoughts on the tax rate, how it develops also in your former core markets going forward next 2 to 3 years? Maybe some color here on the group tax rate.
So resilience of the cost structure and tax rates, Georgios?
So let me start from the second one. Clearly, if you look 1 by 1, the different Euronext market, tax rates are expected to go down over time in the next 3 years. Then the pace of that might change and there might be some delays, but the direction of travel is an overall reduction of the tax rate, and we will guide year on year as we do usually depending on the actual evolution and implementation of the reforms in the different countries. With respect to your first question, your question is how are we capable to maintain cost efficiency?
Yes. And so to say, how much flexibility is in your cost and investment plan depending on the revenue environment? Because it feels like it's much more linked than,
I don't
know, your annual guidance, which is more like costs and stand alone guidance.
So what I can tell to you is that our cost base is fixed. And the guidance that we have communicated to you includes the plan to grow the company, which means that there is not embedded any cutting to the bone of the muscles that we will need to grow. This is key. And then the fact that our cost base is fixed does not mean that we cannot improve processes to reduce the overall cost base of the group while maintaining the fixed component. Our key costs are people like technology, which are by definition fixed, and this is what gives us the operational leverage.
And the operational leverage is what pushes us to increase the size of the group.
Johannes Thormann, HSBC. Sorry for two follow-up questions on costs and taxes. Could you elaborate at least a bit how you see the 2020 tax rate effectively now with Oslo? And on costs, just gave us a feeling with the still prevailing small but still existing inflationary trends in Euronext countries, do you expect costs to be on flat on absolute level or rise over the next years? And last but not least, on the when in the intro statement, you said, Stephane, that you might think about a special dividend.
What are the conditions for distributing excess capital? Thank you.
So I'll cover your last question and Georgios will cover the 2 previous ones. My comments on the special dividend is a very important comment for the sake of completeness. We believe that our shareholders are better off with us having invested in their capital in the acquisition of Fast Match, in the acquisition of the Irish Stock Exchange, in the acquisition of Oslo BPS. Let me remind everyone that the acquisition of Oslo BPS was approved at 100% at the ex shareholder shareholders meeting that way it was to be approved. So I assume that 100% of our shareholders felt that it was a good deal at the right price and better than a special dividend.
But in the absence of similar disciplined ways to deploy capital, If in the next, I don't know, 18 months, 2 years, we continue to pile up cash to deleverage and for all sorts of reasons because we have been too slow, too unlucky, too picky, too greedy, we have not been able to deploy that capital that we have been created, we will have to consider a form of distribution through share buyback or through special dividends, whatever makes sense at the relevant time. This is not the preferred route because our mandate is not to manage treasury. Our mandate is to consolidate top lines and deploy synergies to create value through operations. But in the event we are not capable to capture those opportunities, there will be a form of return of capital to the ones who own it. So that's why I said it's for the sake of completeness.
Yes. Then with respect to your question on costs, the guidance of cost is embedded in the guidance of margin and the guidance of top line. There is not a stand alone guidance on the cost side. You can imply with the other two targets. When it comes to the tax rate, it's very easy to compute.
We have a profit equalization mechanism, which means that all our markets have the same profit. So the breakdown that we have tax rate for with the tax rate for 2020. And the reason why I do not comment today is that even still today, there are uncertainties on what would be the individual rates. Once we will have more certainty, we will communicate on the targets on 2020.
It's Gurjit from JPMorgan. Just three questions. So the first one is just on the use of distribution ledger technology in the business. Are you looking at this from an efficiency perspective, whether it's efficiencies in the clearing settlement? Or are you looking at it from a product expansion to trade different digital Second one is you mentioned U.
S. And Asian equities as an area you want to grow into. Given the indices business is particularly competitive, the top 3 have 80% market share globally of indices. What's your USP to offer Asian and U. S.
Equity so Asian and U. S. Indices to your clients? And then the final one, just on the foreign exchange. I know you're a reasonable large player in the spot market.
Are you thinking about the derivative space? And sort of related to that, in terms of clearing, do you see opportunities in the clearing of OTC foreign exchange contracts?
So Anthony will answer the first question on blockchain and Chris will take the 2 other questions. Thank you. This is
a great question on DMT and blockchain. I think the truth is I think we're looking at it through both angles. First, the process efficiency. Obviously, if you look at the posture chain, let's stick with securities, for instance, today it's exactly the same chain as for large caps. So do you need to pay the same price for clearing and settlement for an SME?
I'm not sure. So we look at blockchain as an enabler to reduce costs and compress the settlement time and bring efficiency. But it's a long shot because regulation also needs to be adapted because that's been built with a large cap in mind. We also look at it from a business opportunity point of view and in particular to see if we can set a foot in the private market world. And this is why we took a stake in TOKenny for non listed securities tokens.
And then the question with regard to the indices in terms of looking at U. S. And Asian markets. I think that from our standpoint, it's very much driven by the demand from our underlying clients. So they really are the European client base that are looking for structural product distribution to their underlying clients with those underlying.
So it's not going out and trying to launch some global index to market global. It's very much off the back of the demand that we have from our structured product providers as they look to expand their products to their underlying clients. And then I think on the second question with regard to the FX and the rolling out of NDFs, We've seen the electronification of NDFs and derivatives. It's moving again away from the sort of off order book into a more sort of ECN type driven market. For us, it's relatively simple to go out and extend our technology in that.
We do believe we have some of the fastest technology on the FX matching basis. So to roll out NDFs is should be relatively easy for us. It requires us to go down a more regulated path. That's the reason why we've created an office and the matching engine in Singapore. That's where we'll be launching those products.
There's also the site for the majority of the NDFs out in those sort of Asian countries. So the last part in terms of thinking about we are beginning to see the transition of NDFs into clearing. So we are looking at how we can work with our partners. Obviously, LCH have a number of products in terms of the FX clearing and how we can partner them in terms of versus the prime brokerage model, which is the second possibility for us in terms of the clearing. But it is absolutely very, very relevant.
Thank you.
Thank you. Mike Werner from UBS. Two questions, please. First on Oslo VPS. Just looking at the CSD business, I think that's about 45% of the revenues.
How do you see that business structurally in terms of revenue growth going forward compared to say the trading business in terms of cash equities? Do you see this as a faster or slower growing business structurally over the cycle? And then second, on M and A, Stephane, I think you talked about how you guys are very circumspect with regards to your M and A. You learned from your mistakes. Does that imply that we're unlikely to see another transaction in the immediate future now that you're focused on Oslo?
What type of, I guess, capacity do you have to take on another deal? Or is there going to be an interim period where you're really focused on the Al Azulbours acquisition?
Thanks. I'll take a question on M and A and Georgiou will cover the question on VPS and in the context of our CSD ambitions. We have learned from our mistakes, but we have made fewer mistakes than others. And maybe because we have missed more opportunities, I don't know. But the self imposed discipline and capital employment has put us where we are.
And we monitor we have monitored or we have analyzed or screened so far 150, 170 potential acquisitions. We have an investment committee of 4 hours every 4 weeks. And we monitor very closely the opportunities because you have to be ready when they come. What we have shown to the market when we did the acquisition of Oslo BPS in the particular set of circumstances at the end of 2018 was possible because we were ready. We had a framework.
We knew the asset. And we know we thought we knew what to do at that time despite the sort of unusual framework of the transaction. And that's why we are ready. I cannot tell you when we will implement a significant deal. I cannot tell you whether it's soon or later.
I can tell you that we are equipped and organized to do the integration of Oslo BPS at Fast Track irrespective of any other larger positions. So there will be no pause. The pause will be imposed to us by the circumstances. I mean, again, taking the I mean, again, taking the example of Oslo Bork's VPS. At the beginning of 2018, Georgio and I and all that is public information, it was in our offer document.
We had a meeting with the CEO and the chair of Oslo Bork's VPS. We discussed the potential combination. We were asked to submit to the board of Oslo VPS an offer letter. We sent that offer letter approved by our supervisory board, fully funded, etcetera. They replied to us in writing on the 2nd March and they said, thanks but no thanks.
We prefer to stand alone to continue stand alone and please keep that dialogue confidential, which we've done. And frankly, 1 year ago, in October, November 2018, we thought that there was no Oslo situation until we got a call in November from Carnegie telling us majority of the shareholders in Oslo Lopez want to sell the company, but they want to do that without the knowledge of the Board of Directors and the knowledge of the management. Then we had a few hours to take a decision, and we were mentally governance wise equipped to take a decision because we did not discover the asset. We recognized the asset and we did not discover the situation. We recognized the drivers of this unusual situation.
So we are ready to be agile and bold whenever there will be an opportunity. For the moment, there is no dialogue with anyone and there is no willing seller of any material asset that gives any reason to believe that this acquisition will happen shortly. But things can change very quickly, but I don't know how and when. So that's this mindset. But what is very important and that your question connects with what I've said about operations, we can afford the luxury of not pausing because we spend a lot of time on operations and on the deployment of integration plans in a very disciplined manner because otherwise there would be a bandwidth issue, which we don't have because the bandwidth is fully deployed for the moment in making sure that we can move when the opportunity comes.
On your question with respect to profitability, clearly, we do not disclose individual target. But in terms of order of magnitude, the underlying growth we expect from the CSD business is not too different from the one of the trading business. However, as Anthony explained, our ambition is to widen the product offering and the value added services for local and global clients. And this is part of the as Stefan said, the ambition to grow services around our existing businesses, which are included in the 2% to 3% growth rate.
Romain Ederbank, ABN AMRO. Two questions from my side. On the M and A side, you said that you could still tap the debt market if that's necessary, that you want to have an investment grade strong investment grade rating there. Have you discussed and have the rating agencies, have they changed their view on what kind of net debt to EBITDA multiple that would imply? And can you please share that with us?
And then secondly, I think that, Stefan, you were mentioning an acceleration in growth, whereas obviously, in your target as a CAGR, should we then expect in the near term the growth to be slower than 2% to 3% and then accelerate towards 2022?
Okay. Let me be more clearer on your second question to answer your second question and Giorgio will answer the first one on rating agencies. The guidance is what the guidance is. There is no contradiction or if there is a contradiction, I need to fill the gap between this guidance and the concept of acceleration. What is going to happen is the acceleration of transformation of the company and the acceleration of growth operations.
Because now that we are a $5,100,000,000 company or $5,000,000,000 company whatever, now that we are equipped humanly, technologically, financially to grow more quickly, I know that we will be in a position to catch bigger targets where we will extract more quickly, more synergies than we have been able to do in the past. So my point is that it took us 4 years to grow the company from $1,400,000,000 to $5,000,000,000 The next steps will be bigger and therefore, there will be an accelerations in the growth of the size of the company. The organic growth for the current perimeter is what it is. You may call it conservative, you may call it shy, it is what it is, and this is the expectations we are happy to live with. There is no big change of paradigm slides in this presentation.
There is just a very solid, robust, reliable approach of the growth because believe me, the key value, the key word within Euronext is credibility. This is the most valuable assets. We want to protect our credibility. So that is what it is. But the reality in terms of expectation management is that if we do a deal, it will be bigger than what has been in the past.
We will do also small bolt on deals, but the prospects of transformation is there because we are going to deleverage and we are going to saturate our debt capacity if we find a large deal. And we believe that there is an opportunity to go to shareholders. So that in that respect, that will accelerate. So sorry for the confusion between the concept of accelerated growth and what sounds or looks and smell like a shy number of 2% to 3% on the top line growth.
So with respect to the question on rating, so let me start saying what is included in the rating today, A- stable outlook. There is embedded in our willingness to keep doing M and A, which means that we have clearly communicated publicly on that. And there is a part of bolt on acquisition already embedded in the model of S and P. Then if we look at our current rating, the flexibility we have, which is very well defined in the note from S and P is, as you know, they would reconsider the rating above 2.25 percent net debt to EBITDA, and usually, there is a grace period of 12, 18 months, as you know as well. So this would give us, roughly speaking, 3% of current delta.
And then the cash flow 18 months, it should be around 5. We generate 3 EBITDA per year. So I would say that the flexibility within the current rating is around 0.7, 0.8. And then clearly, strong investment grade is a broader universe than A- and clearly, we would have much more room to maneuver moving to the next step, the BBB plus
Yes. Hi. It's Bruce Hamilton, Morgan Stanley. Just coming back to the revenue targets. I realize you're obviously looking to over deliver as you have in the past.
But when you think about the array of innovations and the plans you've laid before us, which are the ones where you feel the 2%, 3% growth is quite a low hurdle, so in the divisions or by segment, where does that feel a low hurdle in terms of growth priorities? And where is it a bit more of a challenge?
I mean,
I take that one. I believe that we have a very strong ambition. Let me be not to be specific, it's services. So I believe that we have a stronger objective on the overall area of services, which is the part of our business we want to expand to diversify our revenue mix. And this includes corporate services, this includes investor services, this includes new services around post trade, etcetera.
I think you had a question.
Kyle Boyd, KBW. Just a few questions. I guess, in an environment where there's no industry volume growth, do you still think that you have levers to pull on new product innovation, on pricing, yield management, etcetera, to still get into that 2% to 3% organic revenue growth rate? And then another follow-up question would just be on the margin expansion from now to the greater than 60% EBITDA margin. Part of that is related to cost synergies, part of it is generated through operating leverage through the organic growth in the business over that time.
I guess, when we were thinking long term, you mentioned earlier, Georgiou, about the fixed cost base. How should investors view the incremental margins of the business long term? Is there still room to expand those EBITDA margins further past 60% in the long term? Thanks.
Okay. I'll let Simon reply to the volume questions. And Jojo, you may take the questions on the margin expansion prospects.
Okay. So in addition to the sort of general volume growth, there are 2 segments where we can pull levers. 1st is in the organic product development area and second in yield management. In the product development area, there are especially in the derivatives area, as we started to do around the CAC 40 franchise, which is very, very liquid, the product developments we will be doing will build on existing strengths and existing clearing efficiencies in our clearinghouse partner. And so the types of product innovation you'll see will not be big fishy coke lines and trying to shift liquidity from a competitor, but very pragmatic product launches from a position of strength.
And so the TRF contract we've launched on the CAC-forty future and the shorter 6 month expiries we're doing on the single stock dividend futures, These all we're not going to give guidance on those today, but they're material differences to the within the range of the percentages we're talking about. In terms of yield management, so this is a never ending mission for us. And the way we approach this is that we segment our customer base and our customer flows in most granular possible way. And for each of those segments, we try and work out with the customer what is the optimum pricing point between the 2 of us or between that customer segment to maximize a win win situation. And that is based on a deep, deep understanding of the fee volume elasticity.
And so this afternoon in some of the workshops, we'll see how we're sort of going a bit further into the value chain than we have before. We have dedicated fees for retail, understanding the economics of that segment. We have we're the only exchange to do this, but we have a dedicated fee segment for the large hedge funds sitting behind the big global brokers. And
this is
the only area where we've put subscription fees in because it works for us, and that unlocks incremental volumes and incremental revenues for us. And so there's still a lot more work to be done in yield management, which I'm very confident will help us out in this 2% to 3% growth target.
Yes. When it comes to cost, I believe that we should separate the exchange business from the CSD business. From the exchange business, what I can tell you is roughly onethree of our costs are IT. And clearly, when we scale up uptick, those costs are not replicated. And this is a source of increased margin if we are able to attach more volumes to the current matching engine.
The story is different from CSDs. This is a space that we are just entering in terms of second CSDs. It's new on the one side and is constrained by CSDR. Today, we have 2 CSDs, one which is already compliant and the other that we'll submit is demand for CSDR in the coming months years. And therefore, this is something that we are exploring at the moment.
But when it comes to the core exchange business, the scalability and synergies are very significant. And every new exchange or any new pool of liquidity we attach to the pool significantly contributes to the margin. But again, the targets you have seen are current perimeter. So any expansion of the current perimeter is not included in that.
Shane Finhamour, Manicoke Partners. The federal model you mentioned as being a sort of a key competitive advantage, and you've been able to acquire businesses that others where others may have failed. Yet, you have to balance this sort of local regulator, local staff, local customer base needs versus getting costs down and expanding margins. Can you just talk about whether you think that there are limits on the EBITDA margin? Are there constraints on your ability to expand the EBITDA margin that comes from having a federal model versus a single country vertical model?
Well,
I will answer your question from the end. I mean, asset facts show that our federal model is unleashing more value and more EBITDA than single country exchanges. We are much more profitable and efficient than any single country exchanges. And even in terms of EBITDA margin, we are more efficient than companies in Europe that are much larger than we are. So I will answer your question by saying that, yes, every time a new exchange joins us, there is an incremental level of complexity.
And yes, this federal model cannot expand forever. Within this current construct, it has some theoretical limits. I don't know what they are. What I can tell you precisely for the 3 years to come is that one thing we will look more carefully now than we were looking at in the past, when we are more in the expansion process and the proof of concept type of process, is that we look more carefully at the ratio between complexity brought by any new agent joining the model versus size and impact in the growth of the company as group or diversification of the top line. If the ratio is not great, we may pass.
We are not a buyer of any exchange in Europe. We are the natural consolidator of single country exchanges that are facing very specific issues, which is getting scale in terms of access to the largest liquidity pool, getting upgrade in terms of technology platform by the access to uptick, getting connectivity to global markets, while at the same time keeping their local identity. So for these exchanges, if they are large enough and if they make a difference, then they are more than welcome to join us. But it's very important to realize that every single exchange in Europe doesn't have a put on Euronext to sell. So it's very, very important.
We want to consolidate to be in the backbone of the Capital Market Union, but we are a commercial company and a market infrastructure and we are a solution for certain exchanges, not all of them. The other question was on no? IT uncovered. Okay, sorry.
It's Hayley Tam from Credit Suisse here. Two questions, please. First of all, I think you've made it very clear, and I think everyone here understands about the federal model for the exchange businesses. But I think you mentioned a couple of times about the coming of the Euronext of CSDs. And I was wondering if you could help us understand a bit better how that might work I tend to think of that as quite a domestic business.
And then secondly, I realize you set your targets in a very specific way. But if there's any guidance you can give us on the phasing of your targets over the next 3 years, that would be appreciated. Thank you.
So Antony will answer about the ambitions on the CSZ and Georgiou will answer briefly. And Daniel know the answer on the phasing of targets.
Look, the concept of Euronext. Csg is simple. Stephane mentioned earlier in the presentation, we want to go from the leading pan European exchange to the leading pan European infrastructures. So we need to look at the other part of the chain and see how we can apply all the lessons and all the know how that we have used to grow Euronext and particularly in the exchange business in the technology. And this combined approach between local ecosystem and global clients that is our trademark, how we can apply it to the post trade world.
And so there are similarities between CSDs and national exchanges working on listings and local trading. A CSC is a local business by a position of the ICSC. And so today, we have 2 CSCs. Maybe in the future, we'll have more. And so how do you make a common look and feel in these different value propositions that are local?
How do you develop services that are consistent in between these ecosystems? And how do you connect these ecosystems together? Well, while bringing, let's say, harmonized or aligned technology, that is the Euronext of the CISD. So look at what we've done since 2000 by creating the single of the book on the trading platform and see how we can get inspired by that in order to give more consistency while remaining local in the CSD business. That is our
mission.
Well, today, we have CSD technologies. And looking at this technology and see how we can improve it and streamline it is definitely part of the plan.
With respect to your second question on the phasing, clearly, the most complicated things for us is providing short term guideline. The thing I can tell you is that clearly, we are aiming to transform and invest. So you have seen that we have disclosed 2 amounts, 1 for internal transformation and the other one for the integration of Oslo BPS. You should expect those costs to be rather anticipated in the time line of the plan and be phased out or nearly phased out the last year of the plan. The rest I cannot give you further breakdown.
No other question? Okay. So thank you very much. What I suggest is that we proceed now to enjoy a lunch, which is going to be served upstairs. And then after lunch, which this lunch lasts about an hour, we will have 3 workshops that are, in my view, extremely important to go to the root of the value drivers of the company.
One workshop driven by Simon on how do we make cash equity trading so profitable, so resilient in terms of market share and what are our views on the growth of volumes and our capabilities to extract value from volumes, whatever they are. Chris will run with Nicolas Ribard a workshop on advanced data services, where we will cover in a transparent manner the opportunities and also the challenges. So there were some questions in the market about pricing and regulation, etcetera, but also where we are going to find the niches to continue being relevant and really to find a way to dribble within the legs of the big guys to be relevant in this space even further. And Howard Abramson, the CEO of Oslo Bourse VPS and Georgiou, who runs the integration of Oslo within Euronext, are going to share with you in the 3rd workshop the fundamental components of the value creation expected or that we are going to deliver out of Oslo, both in terms of cost synergies as well as the ambitions to make Oslo BOSS VPS the hub or the launchpad of Euronext in the Nordic region. So enjoy the lunch.
Happy to take informal questions here and there. And I hope you can make it for the workshops. And it's about time to put to an end the webcasting of this session. And I want to thank all the ones across the globe who took some time to listen to that long presentation. Let me also thank all the teams who have organized this day and the Investor Relations team of Euronext, Aurelie, Clement, all the other people within the organizations who work to make the communication easier with our stakeholders are available to take follow-up questions in the event you have you need more details in the coming days.
But for the time being, let's focus on the most important part of the day and have a good lunch in Paris.