Cotation Assistée en Continu
Encyclopedia
Cotation Assistée en Continu (CAC) was an electronic trading system used at the Paris Bourse
, the French
stock exchange
, in the 1980s and 1990s. It was introduced in 1986 for trading less liquid equities, and in 1989 it was operational for all listed stocks. The acronym is also used to refer to the CAC 40
, a stock index provided by the Paris Bourse. Curiously, the acronym also fits the name of the early Parisian stockbrokers' association, the "Compagnie des Agents de Change". The CAC system was a version of an earlier system developed by the Toronto Stock Exchange
in the mid-1970s: CATS (Computer Assisted Trading System)
. In the early 1990s the Paris Bourse developed an upgraded technology known as NSC (Nouveau Système de Cotation)
, which served as a technological platform for the Euronext
initiative. The Paris Bourse became Euronext Paris
in 2000.
CAC, like CATS, was an order-driven market platform that handled the process of order matching and price setting through a double auction
algorithm
. It allowed for a full automation of quotation in a centralised, order-driven exchange (which eventually may translate into the disappearance of the open outcry
).
Paris Bourse
The Paris Bourse is the historical Paris stock exchange, known as Euronext Paris from 2000 onwards.-History and functioning:...
, the French
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
stock exchange
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
, in the 1980s and 1990s. It was introduced in 1986 for trading less liquid equities, and in 1989 it was operational for all listed stocks. The acronym is also used to refer to the CAC 40
CAC 40
The CAC 40 is a benchmark French stock market index. The index represents a capitalization-weighted measure of the 40 most significant values among the 100 highest market caps on the Paris Bourse...
, a stock index provided by the Paris Bourse. Curiously, the acronym also fits the name of the early Parisian stockbrokers' association, the "Compagnie des Agents de Change". The CAC system was a version of an earlier system developed by the Toronto Stock Exchange
Toronto Stock Exchange
Toronto Stock Exchange is the largest stock exchange in Canada, the third largest in North America and the seventh largest in the world by market capitalisation. Based in Canada's largest city, Toronto, it is owned by and operated as a subsidiary of the TMX Group for the trading of senior equities...
in the mid-1970s: CATS (Computer Assisted Trading System)
CATS (trading system)
CATS is an automated exchange system developed for the Toronto Stock Exchange in 1977. CATS was one of the first technologies allowing for a full automation of the price-setting process in a stock exchange. This technology was implemented in several other stock exchanges in the 1980s...
. In the early 1990s the Paris Bourse developed an upgraded technology known as NSC (Nouveau Système de Cotation)
Nouveau Système de Cotation
The NSC is one of Euronext's electronic trading technologies. It was developed by the Paris Bourse in the early 1990s and introduced in 1995 as an upgrade of the CAC system ....
, which served as a technological platform for the Euronext
Euronext
Euronext N.V. is a pan-European stock exchange based in Amsterdam and with subsidiaries in Belgium, France, Netherlands, Portugal and the United Kingdom. In addition to equities and derivatives markets, the Euronext group provides clearing and information services...
initiative. The Paris Bourse became Euronext Paris
Euronext Paris
Euronext Paris is France's securities market, formerly known as the Paris Bourse, which merged with the Amsterdam, Lisbon and Brussels exchanges in September 2000 to form Euronext NV, which is the second largest exchange in Europe behind the UK's London Stock Exchange...
in 2000.
CAC, like CATS, was an order-driven market platform that handled the process of order matching and price setting through a double auction
Double auction
A double auction is a process of buying and selling goods when potential buyers submit their bids and potential sellers simultaneously submit their ask prices to an auctioneer, and then an auctioneer chooses some price p that clears the market: all the sellers who asked less than p sell and all...
algorithm
Algorithm
In mathematics and computer science, an algorithm is an effective method expressed as a finite list of well-defined instructions for calculating a function. Algorithms are used for calculation, data processing, and automated reasoning...
. It allowed for a full automation of quotation in a centralised, order-driven exchange (which eventually may translate into the disappearance of the open outcry
Open outcry
Open outcry is the name of a method of communication between professionals on a stock exchange or futures exchange. It involves shouting and the use of hand signals to transfer information primarily about buy and sell orders...
).