With a wide offering of equities, futures, options, and interest rate products, and a new, in-house clearing arrangement underway, NYSE Euronext Paris represents a unique combination of rich history and cutting-edge finance.
The Lyon Bourse was established the mid-1500s. Edicts dated 1572 and 1595 regulated the status of courratiers, or brokers, in the main towns and cities throughout the kingdom. A royal order issued in 1639 replaced the name courratier with agent de change for those trading in securities and commercial bills.
In 1801, the new-style Paris Bourse was officially recognized, and the number of agents de change, set at 60 in 1786, was increased to 71. Construction of the Palais Brongniart – the building that was to house the Paris Bourse for over 150 years – began in 1807 and was completed in 1827. Paris Bourse joined the NYSE Euronext family of exchanges as NYSE Euronext Paris in 2000.
NYSE Euronext Paris currently has a total of 586 company listings (excluding investment funds)—528 domestic and 58 foreign—with a market capitalization of € 1,197,013,000,000, as of 31 December 2011, a 16% decline compared to 2010.
The CAC 40 Index, which contains 40 equities selected among the top 100 market capitalization and the most active listed equities, is the main benchmark for NYSE Euronext Paris. Tracking a sample of blue-chip equities, CAC 40 performance is closely correlated to that of the market as a whole, and is the underlying asset for options and futures contracts.
NYSE Euronext Paris is governed by the French Monetary and Financial Code, under which the French Minister of Finance has the authority to confer or revoke regulated market status upon recommendation of the Autorité des Marches Financiers (AMF) and following an opinion from the French Banking Commission (Commission Bancaire). Market status is granted if the market meets specific conditions for proper operation.
In addition to its status as a market operator, NYSE Euronext Paris is approved as a specialized financial institution and so it is governed by French banking legislation and regulations (notably the French Banking Act as amended and codified in the French Monetary and Financial Code), making it subject to supervision by the Comité des Etablissements de Crédit et des Entreprises d’Investissement (CECEI) and the Commission Bancaire. As the relevant indirect parent company of NYSE Euronext Paris for purposes of banking regulations, NYSE Euronext is also subject to certain reporting and statutory requirements of the Commission Bancaire, and must comply with certain ratios and requirements including minimum equity requirements and solvency ratios.
French banking law grants regulatory and supervisory powers over credit institutions and investment firms to various administrative authorities, including: