Euronext Paris

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Euronext Paris
New Euronext logo.png
Palais Brongniart (112826257).jpg
Type Stock exchange
Location Paris, France
Coordinates 48°52′07.42″N02°19′37.81″E / 48.8687278°N 2.3271694°E / 48.8687278; 2.3271694
Founded24 September 1724;299 years ago (1724-09-24) (as Paris Bourse)
22 September 2000;23 years ago (2000-09-22) (as Euronext Paris)
Owner Euronext
Key peopleDelphine d'Amarzit (CEO)
Currency EUR
No. of listings795 [1]
Market cap US$4.58 trillion [1]
Indices CAC 40
CAC Next 20
CAC Mid 60
CAC Small
Website www.euronext.com/en/markets/paris

Euronext Paris, formerly known as the Paris Bourse, is a securities market which merged with the Amsterdam, Lisbon and Brussels exchanges in September 2000 to form Euronext NV. As of 2022, the 795 companies listed had a combined market capitalization of over US$4.58 trillion. [1] Euronext Paris, the French branch of Euronext which was formerly seated at the Palais Brongniart in Paris, is Europe's second largest stock exchange market as of 2023, behind the London Stock Exchange (LSE). [2] [3]

Contents

History

Palais Brongniart in 1900 Tavik Frantisek Simon Die Pariser Borse.jpg
Palais Brongniart in 1900
Building at 4, place de la Bourse (center right), former seat of the Compagnie des agents de change until 1988 Place de la Bourse Paris.jpg
Building at 4, place de la Bourse (center right), former seat of the Compagnie des agents de change until 1988
Interior of the headquarters of SBF, then Euronext at 39-41, rue Cambon, in 2014 Paris - 38 rue Cambon - 3.jpeg
Interior of the headquarters of SBF, then Euronext at 39–41, rue Cambon, in 2014

In the early 19th century, the Paris Bourse's activities found a stable location at the Palais Brongniart , or Palais de la Bourse, built to the designs of architect Alexandre-Théodore Brongniart from 1808 to 1813 and completed by Éloi Labarre from 1813 to 1826. [4] Brongniart had spontaneously submitted his project, which was a rectangular neoclassical Roman temple with a giant Corinthian colonnade enclosing a vaulted and arcaded central chamber. His designs were greatly admired by Napoleon and won Brongniart a major public commission at the end of his career. Initially praised, the building was later attacked for academic dullness. The authorities had required Brongniart to modify his designs, and after Brongniart's death in 1813, Labarre altered them even further, greatly weakening Brongniart's original intentions. From 1901 to 1905, Jean-Baptiste-Frederic Cavel designed the addition of two lateral wings, resulting in a cruciform plan with innumerable columns. According to the architectural historian Andrew Ayers, these alterations "did nothing to improve the reputation of this uninspiring monument." [4]

From the second half of the 19th century, official stock markets in Paris were operated by the Compagnie des agents de change, directed by the elected members of a stockbrokers' syndical council. The number of dealers in each of the different trading areas of the Bourse was limited. There were around 60 agents de change (the official stockbrokers). An agent de change had to be a French citizen, be nominated by a former agent or his estate, and be approved by the Minister of Finance, and he was appointed by decree of the President of the Republic. Officially, the agents de change could not trade for their own account nor even be a counterpart to someone who wanted to buy or sell securities with their aid; they were strictly brokers, that is, intermediaries. In the financial literature, the Paris Bourse is hence referred to as order-driven market, as opposed to quote-driven markets or dealer markets, where price-setting is handled by a dealer or market-maker. In Paris, only agents de change could receive a commission, at a rate fixed by law, for acting as an intermediary. However, parallel arrangements were usual in order to favor some clients' quote[ clarification needed ]. The Commodities Exchange was housed in the same building until 1889, when it moved to the present Bourse de commerce . [5] Moreover, until about the middle of the 20th century, a parallel market known as "La Coulisse" was in operation. [6]

Until the late 1980s, the market operated as an open outcry exchange, with the agents de change meeting on the exchange floor of the Palais Brongniart. In 1986, the Paris Bourse started to implement an electronic trading system. This was known generically as CATS (Computer Assisted Trading System), but the Paris version was called CAC (Cotation Assistée en Continu). By 1989, quotations were fully automated. The Palais Brongniart hosted the French financial derivatives exchanges MATIF and MONEP, until they were fully automated in 1998.

In 1988, new legislation was adopted that radically reformed the governance of the Paris stock exchange. Its ownership was transferred to the former Compagnie des agents de change  [ fr ] ("brokers' society"), which, on the occasion renamed itself as the Société des Bourses Françaises (SBF, "French Stock Exchange Company"). In 1999, the SBF absorbed what remained of MATIF and MONEP and altered its name to Paris Bourse-SBF. [7] The next year, SBF was a leading participant of the merger that formed Euronext.

Buildings

Following the collapse of John Law's Mississippi Company in 1721, the Paris bourse was located in his Hôtel de Nevers from 24 September 1724 to 27 June 1793, when it suspended operations in the chaotic context of the French Revolution. It reopened on 10 May 1795 in the Louvre Palace, in Anne of Austria's former summer apartment on the ground floor of the Petite Galerie, [8] : 73  and stayed there until 9 September 1795. [9] In September 1795, the Bourse again closed for a few months; it reopened in January 1796 in the Church of Notre-Dame-des-Victoires, then in October 1807, moved to the Palais-Royal, and finally, in March 1818, to the former Couvent des Filles-Saint-Thomas  [ fr ], adjacent to the site where the Palais Brongniart was already in construction. On 6 November 1926, the stock exchange finally moved to the latter building, [9] : 118-119  which was and remains owned by the City of Paris.

Following the 1988 reform, the Compagnie des agents de change, renamed SBF, left its iconic art deco seat at 4, place de la Bourse to move to the former Paris office of Chase Manhattan Bank at 39, rue Cambon. [10] That building remained the seat of SBF, then Euronext Paris until the latter moved to La Défense in 2015. The building on rue Cambon was subsequently restructured to house offices of Chanel. [11]

Operations

It operates the MATIF futures exchange, which trades futures and options on interest rate products and commodities, and MONEP, equity and index futures and options. All products are traded electronically on the NSC system adopted by all of the Euronext members. Transactions are cleared through LCH.Clearnet. Cash settlement is T+2. [12] Trading hours are 9 am to 5:30 pm CET, Monday to Friday.

Structure and indices

The French equities market is divided into three sections. The Premier Marché, formerly called the Official List, includes large French and foreign companies, and most Bond issues. The Second Marché, lists medium-sized companies, while nouveau marché lists fast-growing start up companies seeking capital to finance expansion, linked to Euro.nm, the European equity growth market. A third market, Marché Libre, is nonregulated, administered by Euronext Paris for transactions in securities not listed on the other three markets.

Euronext Paris calculates a family of indices. The CAC 40 is the exchange's benchmark, disseminated in real time. Its components are included in the broader SBF 120 Index, a benchmark for investment funds. The SBF 250 index, a benchmark for the long-term performance of equity portfolios, includes all of the SBF 120; it is structured by sector. The MIDCAC index includes 100 of the most liquid medium-size stocks on the Premier Marché and Nouveau Marché calculated on the basis of opening and closing prices, while the Second Marché index focuses on that market. Both indices are benchmarks for funds. The Nouveau Marché Index represents stocks in the growth market. The SBF-FCI index is based on a selection of convertible bonds that represent at least 70% of the total capitalization of this market, calculated twice daily. For derivatives, MONEP trades short-term and long-term stock options and futures and options on a family of Dow Jones indices. Euronext Commodities products include commodity future and options on European rapeseed and futures on rapeseed meal, European rapeseed oil, milling wheat, corn, wood pellets, dairy and Paris Real Estate.

Key figures

For the fiscal year ending December 2004, Euronext Paris recorded sales of US$522 million, a −12.9% decrease in sales from 2003.

Euronext Paris has a US$2.9 trillion total market capitalization of listed companies and average daily trading value of its combined markets of approximately US$102 billion/€77 billion (as of 28 February 2007).

See also

Related Research Articles

<span class="mw-page-title-main">Commodity market</span> Physical or virtual transactions of buying and selling involving raw or primary commodities

A commodity market is a market that trades in the primary economic sector rather than manufactured products, such as cocoa, fruit and sugar. Hard commodities are mined, such as gold and oil. Futures contracts are the oldest way of investing in commodities. Commodity markets can include physical trading and derivatives trading using spot prices, forwards, futures, and options on futures. Farmers have used a simple form of derivative trading in the commodity market for centuries for price risk management.

<span class="mw-page-title-main">CAC 40</span> Blue chip stock market index

The CAC 40 is a benchmark French stock market index. The index represents a capitalization-weighted measure of the 40 most significant stocks among the 100 largest market caps on the Euronext Paris. It is a price return index. It is one of the main national indices of the pan-European stock exchange group Euronext alongside Euronext Amsterdam's AEX, Euronext Brussels' BEL20, Euronext Dublin's ISEQ 20, Euronext Lisbon's PSI-20 and the Oslo Bors OBX Index. It is an index without dividends. Cotation operates every working day from 9:00 a.m. to 5:30 p.m. It is updated every 15 seconds.

<span class="mw-page-title-main">Euronext</span> European financial services company

Euronext N.V. is a pan-European bourse that provides trading and post-trade services for a range of financial instruments.

<span class="mw-page-title-main">Bourse station</span> Metro station in Paris, France

Bourse is a station on Paris Métro Line 3, located in the 2nd arrondissement of Paris.

<span class="mw-page-title-main">London International Financial Futures and Options Exchange</span> Futures exchange located in London, UK (founded 1982)

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<span class="mw-page-title-main">Osaka Exchange</span> Japanese securities exchange located in Osaka

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The Brussels Stock Exchange, abbreviated to BSE, was founded in Brussels, Belgium, by decree of Napoleon in 1801. In 2002, the BSE merged with the Amsterdam, Lisbon and Paris stock exchanges into Euronext, renaming the BSE Euronext Brussels. The most well known stock market index on the BSE is the BEL20.

<span class="mw-page-title-main">Euronext Lisbon</span>

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MATIF SA is a private corporation which is both a futures exchange and a clearing house in France. It was absorbed in the merger of the Paris Bourse with Euronext NV to form Euronext Paris. Derivatives formerly traded on the Matif and other members of Euronext are traded on LIFFE Connect, the electronic trading platform of the London International Financial Futures Exchange. LIFFE is an affiliate of Euronext.

<span class="mw-page-title-main">Palais Brongniart</span> Building in Paris that housed the historical Paris stock exchange

The Palais Brongniart is a building in Paris that was built at the direction of Napoleon in the early 19th century to house the Paris stock exchange. It is located at the Place de la Bourse, in the 2nd arrondissement in central Paris. It was named after its initial architect, Alexandre-Théodore Brongniart, who died in 1813 prior to its completion. The Palais Brongniart is nowadays used as an events centre, since the trading floor relocated in 1987, followed in 2004 by the last financial institution that was still housed there.

Cotation Assistée en Continu (CAC) was an electronic trading system used at the Paris Bourse, the French stock exchange, in the 1980s and 1990s.

The SBF 120 is a French stock market index. The index is based on the 120 most actively traded stocks listed in Paris. It includes all 60 stocks in the CAC 40 and CAC Next 20 indexes and 60 additional stocks listed on the Premier Marché and Second Marché under Euronext Paris. The current, frequently changing, index composition is available on the Euronext Web site.

The CAC Mid 60 is a stock market index used by the Paris Bourse. It is a mid-cap index which represents the 60 largest French equities after the CAC 40 and the CAC Next 20. The index was inaugurated in 2005, with the number of index constituents being reduced from 100 to 60 in March 2011.

The CAC Small is a stock market index used by the Paris Bourse. It is a small-cap index which represents all main-market French equities not included in the CAC 40, the CAC Next 20 or the CAC Mid 60. Together, these 4 indices make up the CAC All-Tradable. Originally consisting of 90 listings, the index was revamped to include a wider range of stocks in March 2011.

An exchange, bourse, trading exchange or trading venue is an organized market where (especially) tradable securities, commodities, foreign exchange, futures, and options contracts are bought and sold.

LCH is a financial market infrastructure company headquartered in London that provides clearing services to major international exchanges and to a range of OTC markets. The LCH Group includes two main entities: LCH Limited based in London and LCH SA based in Paris.

Options Market France (OMF) was a French futures exchange and clearing house that was absorbed into MATIF at the end of the 1980s. It was responsible for creating the first stock index of the top French listed companies and provided futures and options contracts on the index that could be traded.

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<span class="mw-page-title-main">Bourse de commerce (Paris)</span> Commodity market

The Bourse de commerce is a building in Paris, originally used as a place to negotiate the trade of grain and other commodities, and used to provide services to businesses by the Paris Chamber of Commerce during the latter part of the 20th century. It has its origins in a circular wheat exchange built in 1763–67, with an open-air interior court that was later capped by a wooden dome replaced in 1811 with a copper one. In a major reconstruction in 1888–89 much of the structure was replaced, although the layout remained the same and the dome was retained albeit adding glass and a mounted canvas.

References

  1. 1 2 3 "Euronext Paris". Sustainable Stock Exchanges Initiative. Retrieved 14 April 2022.
  2. ↑ Masud, Faarea (14 November 2022). "London loses position as most valuable European stock market". BBC News . BBC. Retrieved 28 September 2023.
  3. ↑ Foy, Simon (19 October 2023). "London Stock Exchange overtakes Paris to regain crown as Europe's biggest market". The Telegraph. ISSN   0307-1235 . Retrieved 6 December 2023.
  4. 1 2 Ayers 2004, pp. 61–62.
  5. ↑ Colling, Alfred (1949). La Prodigieuse Histoire de la Bourse. Paris: Société d'éditions économiques et financières. p. 301.
  6. ↑ Chisholm, Hugh, ed. (1911). "Coulisse"  . Encyclopædia Britannica (11th ed.). Cambridge University Press.
  7. ↑ "Paris Bourse-SBF". Bibliothèque nationale de France.
  8. ↑ Jacques Hillairet. Dictionnaire historique des rues de Paris. Vol. II. Paris: Editions de Minuit.
  9. 1 2 Emmanuel Vidal (1910), The History and Methods of the Paris Bourse (PDF), Washington D.C.: U.S. Senate National Monetary Commission
  10. ↑ "SBF-Bourse de Paris". Bibliothèque nationale de France.
  11. ↑ "Siège social d'une Maison de Haute Couture, Paris". Ory Architecture. 2021.
  12. ↑ "T+2 Standard settlement Lifecycle update". Euronext. 28 July 2014. Archived from the original on 2 April 2015. Retrieved 28 February 2015.

48°52′07.42″N02°19′37.81″E / 48.8687278°N 2.3271694°E / 48.8687278; 2.3271694

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