Euronext, the pan-European stock exchange, has made a significant move in the market data space with its recent agreement to acquire 70% of the capital of the Institutional Shareholder Services (ISS) unit of fintech firm Deutsche Börse. This acquisition will give Euronext access to ISS`s market data and analytics, which will be integrated into Euronext`s data services and used to provide better insights for investors.

The deal is a significant boost to Euronext`s market data offering and will enable it to compete with larger rivals, such as Bloomberg and Refinitiv. The move is part of Euronext`s strategy to diversify its revenue streams and reduce its reliance on trading fees.

The acquisition will provide Euronext with access to ISS`s ESG (Environmental, Social and Governance) data, which is increasingly in demand among investors who want to assess the sustainability of their investment portfolio. This data is also used by institutional investors to engage with companies on ESG issues, and to inform their voting decisions at shareholder meetings.

Furthermore, the acquisition will enable Euronext to provide more comprehensive market data services to its clients, including historical data, pricing information, and news and research. This will provide investors with a more holistic view of the market, allowing them to make more informed investment decisions.

The deal is also significant for Euronext`s data business, which has seen consistent growth in recent years. In 2020, Euronext`s data and index segment grew by 13.8%, accounting for 24% of Euronext`s total revenue. The acquisition of ISS will enable the business to continue to grow, as it seeks to expand its market share and increase its offering.

In conclusion, Euronext`s market data agreement with ISS is a significant move for the exchange, enabling it to expand its market data offering and compete with larger rivals such as Bloomberg and Refinitiv. The acquisition will provide Euronext with access to valuable ESG data, as well as historical data, pricing information, and news and research, enabling it to provide more comprehensive market data services to its clients. This move is part of Euronext`s wider strategy to diversify its revenue streams and reduce its reliance on trading fees, and is likely to have a positive impact on the long-term growth of the business.