Euronext Paris
Encyclopedia
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
. It now belongs to the NYSE Euronext group, the first global stock exchange.
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+3. Trading hours are 9 am to 5:30 pm, Monday to Friday.
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 fourth 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
, desseminated 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. MATIF's products include commodity future and options on European rapeseed
and futures on rapeseed meal, European rapeseed oil, milling wheat, corn and sunflower seeds; interest rate futures and options on the Euro notional bond, five-year Euro and three-month PIBOR (Paris Interbank Offered Rate), and futures on the 30-year Eurobond
and two-year E-note, and index futures on the CAC 40.
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 $102 billion/€77 billion (as of 28 February 2007).
Paris Bourse
The Paris Bourse is the historical Paris stock exchange, known as Euronext Paris from 2000 onwards.-History and functioning:...
, which merged with the Amsterdam
Amsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...
, Lisbon
Lisbon
Lisbon is the capital city and largest city of Portugal with a population of 545,245 within its administrative limits on a land area of . The urban area of Lisbon extends beyond the administrative city limits with a population of 3 million on an area of , making it the 9th most populous urban...
and Brussels
Brussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...
exchanges in September 2000 to form 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...
NV, which is the second largest exchange in Europe behind the UK's London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
. It now belongs to the NYSE Euronext group, the first global stock exchange.
Operations
It operates the MATIFMATIF
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...
futures exchange
Futures exchange
A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. These types of...
, which trades futures
Futures contract
In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
and options
Option (finance)
In finance, an option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the...
on interest rate
Interest rate
An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for...
products and commodities, and MONEP, equity
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
and index futures and options. All products are traded electronically on the NSC
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 ....
system adopted by all of the Euronext members. Transactions are cleared through LCH.Clearnet
LCH.Clearnet
LCH.Clearnet is an independent clearing house based in Europe that serves major international exchanges and platforms, as well as a range of OTC markets...
. Cash settlement is T+3. Trading hours are 9 am to 5:30 pm, 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 BondBond (finance)
In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...
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
Euro.nm
Euro.nm is a pan-European network of regulated markets dedicated to growth companies. Formed on March 1, 1996 by the European Association of European Emerging Exchanges, members of this market network include Euronext Amsterdam, Euronext Paris, Euronext Brussels, Deutsche Börse AG, and Borsa Italiana...
, the European equity growth market. A fourth 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
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...
is the exchange's benchmark
Benchmarking
Benchmarking is the process of comparing one's business processes and performance metrics to industry bests and/or best practices from other industries. Dimensions typically measured are quality, time and cost...
, desseminated in real time
Real-time computing
In computer science, real-time computing , or reactive computing, is the study of hardware and software systems that are subject to a "real-time constraint"— e.g. operational deadlines from event to system response. Real-time programs must guarantee response within strict time constraints...
. 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. MATIF's products include commodity future and options on European rapeseed
Rapeseed
Rapeseed , also known as rape, oilseed rape, rapa, rappi, rapaseed is a bright yellow flowering member of the family Brassicaceae...
and futures on rapeseed meal, European rapeseed oil, milling wheat, corn and sunflower seeds; interest rate futures and options on the Euro notional bond, five-year Euro and three-month PIBOR (Paris Interbank Offered Rate), and futures on the 30-year Eurobond
Eurobond
A Eurobond is an international bond that is denominated in a currency not native to the country where it is issued. It can be categorised according to the currency in which it is issued. London is one of the centers of the Eurobond market, but Eurobonds may be traded throughout the world - for...
and two-year E-note, and index futures on the CAC 40.
Key figures
For the fiscal year ending December 2004, Euronext Paris recorded sales of USD$ 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 $102 billion/€77 billion (as of 28 February 2007).
See also
- List of French companies
- CAC 40CAC 40The 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...
- CAC Next 20CAC Next 20The CAC Next 20 is an index of security prices used with the Euronext Paris. It gathers the 20 companies whose market capitalizations are ranked after those of the 40 companies who compose the CAC 40. These 20 are possible candidates to replace the members of the CAC 40 index. The CAC Next 20 was...
- CAC Mid 100CAC Mid 100The 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...
- French Society of Financial Analysts