Bourse de Paris

The Bourse de Paris (one also speaks about the “ place of Paris ”), renamed Euronext Paris subsidiary of Euronext since 2000, is the official market of the actions in France. The historical place that it a long time occupied in Paris is the Palais Brongniart, where the negotiation was carried out traditionally with shouted. From the end of the Years 1980, the Bourse de Paris east from now on an entirely electronic market, thanks to the installation of the system CAC (Quotation Assisted uninterrupted), replaced in the Years 1990 by technology NSC (New System of Quotation).

In 2007, the Euronext group amalgamated with the NYSE to give rise to the holding company NYSE Euronext. The seat of the new entity is located from now on at New York. Paris preserves a statute of international seat.

History of the Bourse de Paris

September 24th, 1724, a stop established by the Council of State of the king gives rise to the Paris Bourse. The latter occupies the hotel of Nevers then. The king thus hopes to restore a pretense of order within the French economy, upset by the bankruptcy of Law. The purse is thus subjected to a strict regulation, which stipulates, amongst other things, that no woman can reach it.

The activities of share transaction and other products financial historically forwarded by several sites of the Parisian geography. In 1808, Napoleon {{Ier}} poses the first stone of the Palais Brongniart, conceived by the architect Alexandre-Theodore Brongniart and intended to accommodate the Bourse de Paris, institution considered of law and order and apprehended by the Emperor as the “thermometer of public confidence” because of the presence of the revenues 5% (resulting from the consolidated third of the Bankruptcy of the Two-Thirds voted under the Directory) which compose the essence of the official list and whose course is followed with assiduity by Napoleon Bonaparte.

The building will be finally inaugurated under the Restoration on November 4th, 1826 and the Bourse de Paris, which was temporarily installed in the Palais Royal (since October 2nd, 1809), enters finally this place which was reserved to him and which will become the lung of the financial activity of the 19th century, which sees to open out the stock exchange speculation in all that it had of necessary (contribution to the public credit and industry) and of harmful (agiotage).

Until the end of the years 1980, the Bourse de Paris is managed by the corporation of the stockbrokers, which profited from a monopoly on quotation. As of the beginning of the year 1980, and following the recrudescence of competition between international stock exchange places, the question of the modernization of the Bourse de Paris arises, which, until this time, functioned mainly with shouted. The system CAC (Quotation Assisted uninterrupted), introduced gradually between 1986 and 1989, made possible quotation uninterrupted and the survival of a market which was in particular threatened by the Bourse of London. This computerization was followed other instutionnelles reforms, as the modification of the statute of the stockbrokers and the appearance of news companies of purse. The Société of the French Stock Exchanges makes following the Compagnie of the Stockbrokers. The modernization of the Bourse de Paris is accompanied by other initiatives such as creation, since 1989, of the organized markets of financial products derived - the Matif and the Monep, from now on gathered under Euronext.Liffe name since the repurchase of LIFFE by Euronext in 2002 - or the dematerialization from the titles (with the creation of the Sicovam).

As of the end of the year 1990, and after the installation of NSC (New System of Quotation), the Bourse de Paris launches an initiative of fusion between various European purses, which will culminate with the creation of Euronext in 2000.

Lastly, in 2007, the Euronext group seals its union with the NYSE to give rise to the first world purse: NYSE Euronext .

On Friday, October 5, the High committee of place is created by Christine Lagarde, in seen to improve the attractivity of the place of Paris vis-a-vis the other stockmarkets.

Organization and operation of the Bourse de Paris

In a general way, the Bourse de Paris is regarded as a gone directed by the orders or gone from agency . The prices of the quoted shares are determined by the direct confrontation of the sale and buying orders within a centralized notebook of orders. In certain cases, specific intermediaries called " contents of marché" can intervene in the animation of the quotation of certain values: this gives place to the creation of contracts of contributors of liquidity. Their work consists in placing orders on standby so as to guarantee the existence of a counterpart.

The negotiation of the actions differs according to their liquidity. The liquid actions are with dimensions uninterrupted of 09:00 to 17:40 while the values whose liquidity is of less importance are dimensioned by Fixing with predetermined schedules. The titles considered as sufficiently liquid are titles which are the subject of at least 2.500 transactions per annum.

Various compartments

On Euronext Paris, it is possible to negotiate the following financial instruments:

  • Actions (Eurolist, Alternext, Open market)
  • Obligations (Compartment obligations: various groups of quotation according to the characteristics of the obligations)
  • Warrants and Certificats (NextWarrants Compartment)
  • Trackers (Compartiement NextTracks)

The data processing sequence of the titles

August 1st The data processing sequence of the titles recovers the whole of the operations which guarantee the good end of the transactions carried out by the various speakers on a financial market.

Payment-delivery, Sicovam, Clearnet, Euroclear, etc

Market indexes at the Bourse de Paris

Euronext Paris diffuses various indices of market as well as sectoral Indice S. At the time of the fusion of the various compartments actions (Primary market, Second Market, Nouveau Market) which gave rise to Eurolist, of new Indice S were born in order to better give an account of the market evolution.

References

On the history of the Bourse de Paris

  • Colling A., extraordinary history of the Stock Exchange , 1951, S.E.F., Paris.

  • G. Gallais-Hamonno and P. - C. Hautcoeur, " History of the French financial market to the XIXe siècle" , 2007, Publications of the Sorbonne.
  • Lehmann, P. - J., the Bourse de Paris , 1991, Dunod.
  • Lehmann, P. - J., History of the Bourse de Paris , 1997, PUF.
  • Muniesa, F., " To contain the market: the transition from shouted to electronic quotation to the Stock Exchange from Paris" , Sociology of Work 47 (4): 485-501, 2005.
  • Walker, D.A., " With factual account off the functioning off the nineteenth-century Paris Bourse" , European Newspaper off the History off Economic Thought 8 (2): 186-207, 2001.

On the structure of quotation at the Bourse de Paris

  • Oblique

    , B., Foucault, T. and Hillion, P., Microstructure of the financial markets: Empirical institutions, models and tests , 1997, PUF.

  • Hamon, J., Gone of actions. Structure and microstructure , 1995, Economica.

See too

Internal bonds

External bonds

  • NYSE - Euronext

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