Euronext Looks at Sugar, Biofuels, Metals in Commodities Push

Euronext, the equity, bond and derivatives exchange, is looking at sugar, biofuels and metals as potential markets to develop as it tries to expand its presence in commodity derivatives, it said on Tuesday.

After losing most of its commodities team when it was spun off from Intercontinental Exchange last year, it has since recruited a specialist in vegetable oils and biodiesel and another in metals, Nicholas Kennedy, its head of business development for commodities, said.

"We are looking at lots of areas, like metals and energy," he told a press presentation. "We want to diversify."

Euronext was also considering the potential for sugar derivatives as the European Union prepares for the liberalisation of its production quota regime in 2017, he said.

Euronext, which currently has commodity contracts covering cereals and oilseeds, has highlighted commodities as a growth area following its separation from ICE, which led to Euronext losing London-based commodity markets including sugar and cocoa.

Kennedy declined to give further details and said the priority for the exchange this year remained the upcoming launch of revamped dairy derivatives.

Euronext said on Friday that it planned to launch the dairy products at the end of the first quarter, a move designed to coincide with the abolition of EU milk quotas.

Reporting by Gus Trompiz.