Monday, October 26, 2009

Paris Stock Exchange

The Paris Stock Exchange is now known as the NYSE Euronext (NYX) with the merger of equals between the leading U.S. and pan-European securities trading exchanges the holding company of the New York Stock Exchange and Euronext N.V., the Paris-based first European integrated stock exchange that was formed in September 2000 by the merger of the Paris, Brussels, and Amsterdam exchanges.

This merger came through only after Euronext N.V., the reformed Paris Stock Exchange , which is the largest exchange in Europe following the London Stock Exchange, rejected a proposal by German rival Deutsche Börse for a cash-and-stock merger with an offer of more than €8.5bn ($11bn).

With the total market capitalization of companies listed on the Paris Stock Exchange as well as the Stock Exchanges of New York, Amsterdam and Brussels taken together, that is, NYSE Euronext (NYX) amounting to much more than €21 ($28) trillion and an average daily trading value in the range of €92 ($123) billion as reported in the first quarter of 2007, NYSE Euronext seeks to provide the best quality and integrity available in the market in addition to advanced products and services to investors, issuers, and all those who make use of its markets.

The Paris Stock Exchange controls the MATIF futures exchange and MONEP besides equities, index futures and options. The NSC system is employed in the electronic trading of products. LCH.Clearnet is used to close all dealings.

The CAC 40 is the stock market index of the Paris Stock Exchange . The CAC 40 is composed of French companies however shares in the vicinity of 50 percent, that is almost half, of these companies is owned by foreign investors.

The equities market of the Paris Stock Exchange is divided into the following sections:

  • The Premier Marché, previously known as the Official List – large French and foreign companies, and most Bond issues are included.
  • The Second Marché – medium-sized companies are enlisted.
  • Nouveau or New Marché – companies that are new on the block and require capital to support rapid expansion, get enlisted on this market which is associated with the European equity growth market, Euro.nm.
  • Marché Libre is an additional market that is controlled by Euronext Paris for transactions in securities not listed on the other three markets. This market is however not regulated.Some of the well known companies listed under the Paris Stock Exchange or the NYSE Euronext (NYX) are:
  • ABN AMRO
  • EADS
  • ING Group
  • Philips
  • Arcelor Mittal
  • HSBC
  • NYSE Euronext
  • Unileve

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