Everything about The Paris Bourse totally explained
The
Paris Bourse (or
"Bourse de Paris" in
French) is the historical
Paris stock exchange, known as
Euronext Paris from 2000 onwards.
History and functioning
Historically, stock trading activities have been located in several spots of the Parisian geography, including the rue Quincampoix, the rue Vivienne (near the
Palais Royal), or the back of the
Opéra Garnier (the Paris opera house). In the early 19th century, the Paris Bourse's activities found a stable location at the
Palais Brongniart, or
Palais de la Bourse (the building is due to architect
Alexandre-Théodore Brongniart).
From the second half of the 19th century, official stock markets in Paris were operated by the
Compagnie des agents de change, directed by the elected members of a
stockbrokers' syndical council. The number of participants in the processes of the formation of prices and of exchange in each of the different trading areas of the Bourse was limited. In the case of the
agents de change (the official
stockbrokers at the Paris Bourse), there were around 60. An
agent de change had to be a French citizen, be
nominated by a former agent or his estate, be approved by the Minister of Finance, and was appointed by decree of the President of the Republic. Officially, the
agents de change couldn't trade for their own account nor therefore even be a counterpart to someone who wanted to buy or sell securities with their aid; they were strictly brokers, that is, intermediaries. In the financial literature, the Paris Bourse is hence referred to as "order-driven market", as oppose to "quote-driven markets" or "dealer markets", where price-setting is handled by a dealer or market-maker. In Paris, only
agents de change could receive a commission, at a rate Žfixed by law, for acting as an intermediary. However, parallel arrangements were usual in order to favor some clients' quote. Moreover, until approximately the middle of the 20th century, a parallel market known as
"La Coulisse" was in operation.
Until the late 1980s, this market was operating as an
open outcry exchange, with the
"agents de change" (the Parisian
stockbrokers) meeting in the exchange floor of the Palais Brongniart. In 1986, the Paris Bourse started implementing an electronic trading system known as
CATS (Computer Assisted Trading System), renamed
CAC (Cotation Assistée en Continu) for the Parisian version. By 1989, quotation was fully automated. The Palais Brongniart was then hosting the French financial derivatives exchanges
MATIF and
MONEP, until full automation of these in 1998. In the late 1990s, the Paris Bourse launched the
Euronext initiative, which consisted in the alliance of several European stock exchanges.
Further Information
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