Paris Bourse
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The Paris Bourse (or "Bourse de Paris" in French) is the historical Paris stock exchange, known as Euronext Paris from 2000 onwards.
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[edit] 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 could not 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 fixed 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.
[edit] References
[edit] On the history of the Paris Bourse:
- Lehmann, P.-J. 1991 La Bourse de Paris, Paris: Dunod.
- Lehmann, P.-J. 1997 Histoire de la Bourse de Paris, Paris: PUF.
- Muniesa, F. 2005 "Contenir le marché: la transition de la criée à la cotation électronique à la Bourse de Paris", Sociologie du Travail 47(4): 485-501.
- Walker, D. A. 2001 "A factual account of the functioning of the nineteenth-century Paris Bourse", European Journal of the History of Economic Thought 8(2): 186-207.
[edit] On the structure of the Paris Bourse:
- Biais, B., Foucault, T. and Hillion, P. 1997 Microstructure des marchés financiers: institutions, modèles et tests empiriques, Paris: PUF.
- Hamon, J. 1995 Marché d'actions: architecture et microstructure, Paris: Economica.
- Hamon, J. and Jacquillat, B. 1992 Le marché français des actions: études empiriques 1977-1991, Paris: PUF.
