Paris Stock Exchange is one of the biggest exchanges in the region, formally known as the Paris Bourse, the exchange got its current form in the year of 2000 when the exchanges of Amsterdam, Lisbon, and Brussels merged together to establish the Euronext NV. As of today, it represents the second-largest exchange in Europe, only behind the United Kingdom’s London Stock Exchange.
Paris Stock Exchange is well-known around the world because of the changes that it has helped happen throughout the region and because of the things that it was able to provide for traders. With it’s long and successful history, Bourse de Paris is not going anywhere and seems to be waiting for an even more successful future.
The exchange trades both equities and derivatives, it also posts the Consumer Advisory Council, CAC, 40 Index. The CAC 40 index is mostly made of most popular and well-known French companies, however, almost half of these companies are owned by foreign entities. The thing that makes it the most popular is the fact that it boasts the most modern and advanced traidng platform and services that are available for French traders.
Understanding the Paris Stock Exchange and its history
The Paris stock exchange has a very long history in general. It is considered to be one of the most well-known and successful ones around the world because of the many years that it has been offering its services to the people around the world. By many, it is even considered to be the first continental European integrated stock exchange. It was first incorporated in 1724, as the Paris Bourse.
In 1826, the exchange moved to the palatial building, which was known as the Palais Brogniart, where it managed to remain for more than 150 years. To compete with the London stock exchange of the UK, in the 1980s, the Paris Stock Exchange began plans to integrate electronic traidng. Soon, in 2000, Euronext was created, when the Paris, Brussels, and Amsterdam exchanges merged together. Later, the Lisbon Stock Exchange also joined the Euronext.
For companies to be able to trade on major exchanges, they have to complete listing agreements with the exchanges on their own. Also, they have to meet some type of criteria. For instance, in 2018, the NYSE had a key listing requirement, this stipulated aggregate shareholders’ quality for the last three fiscal years of greater than $10 million. Also, a global market capitalization of $200 million, and a minimum share price. Also, other than this, issuers must have 400 shareholders.
What is Euronext?
Euronext NV is a European stock exchange, which is registered in Amsterdam and corporate headquarters at La Défense in Greater Paris. On its own, it operates markets in Amsterdam, Brussels, London, Lisbon, Dublin, Oslo, and Paris. Euronext combines five different national markets of Europe, these are AEX-index, BEL 20, CAC 40, and PSI 20. in 2012, the Euronext London was opened, which strengthened the competitive position of Euronext in Europe.
What is CAC 40 and things you must know
Before talking more about the Euronext Paris stock exchange market, let’s discuss the CAC 40 a little bit. CAC 40 stands for Cotation Assistée en Continu, which is continuous assisted trading in English. It is used as a benchmark index for funds investing in the French stock market. Generally, it also give s idea of the direction of the Euronext Paris. It represents a capitalization-weighted measure of the 40 most significant values among the 100 highest market caps on the Paris Exchange.
The Paris stock market index is very similar to the Dow Jones Industrial Average, with the fact that it is in most cases it is an index that represents the overall level and direction of the market in the country. What the CAC 40 index does is that it measures the 40 largest equities listed on the Euronext Paris in terms of liquidity, this includes companies that are very well-known around the world, for example, L’Oreal, Renault, Michelin, and many others.
It takes the name from the Paris Bourse’s early automation system, which was called Cotation Assistée en Continu. The base value of it was set in 1987, and it was 1,000. Paris Stock Exchange Index is very well-known around the world and stands to be one of the most respected ones around the world.
When can traders use Paris Stock Exchange’s services?
Stock market opening hours basically are the times that the exchange is open for business, it also reflects the geographical location of the exchange. This time varies in each country and depends a lot on the local working hours and culture of a certain state. The difference between Paris Stock Exchange hours and others on the market happens to facilitate the greatest concentration of buyers and sellers during these hours for local, but also international market participants.
With the different working hours, exchanges ensure that there is concentrated liquidity between their opening and closing hours. If you make a trade outside of the working hours, it will be added to a queue of trades.
The average Paris Stock Exchange Opening time is 8.5 per day, generally, most of the stock exchanges are open 25 to 35 hours per week, with 5 working days. The limited trading hours help to reduce volatility in stock prices but it also limits the liquidity of stocks. When trading hours are shorter, it gives investors time to look through different types of reports and process the information that is available.
Just like many other stock exchanges in Europe and America, the Paris Stock Exchange is open from Monday to Friday, while exchanges in the Middle East typically work from Sunday to Thursday. Also, there is not a lunch break on the Paris Exchange, unlike other exchanges in other parts of the world.
So, the Paris Stock Exchange is live 5 days a week, from Monday to Friday. You should also need to know about the Paris Stock Exchange holidays 2020. This year, the market works every working day, other than 1 January, New Year’s Day, April 10, Good Friday, April 13, Easter Monday, May 1, Labour Day, and December 25, Christmas Day.
What are the Paris Stock Exchange Fees that you need to know about?
The fees at the Paris Stock Exchange are very competitive on the maker. Generally, it will mostly depend on the trading itself and the things that are being traded, the website of the exchange has a very detailed page and provides every information that you might need to know about fees, it is very much recommended to check out their website.
Paris Stock Exchange is probably one of the best-known ones in Europe, Paris Stock Exchange Market Capitalization stands at $2,9 trillion and average daily traidng value of its combined markets is $102 billion, and the numbers are rising every day.
Why is Paris Stock Exchange so important?
There are many things that make this exchange so popular and important, but one of the reasons is that as of today, it stands to be the 2nd biggest one in the European market. We believe that trading has become much more accessible to everyone with the help of this exchange and as time goes by, Paris Stock Exchange is becoming more and more popular in the region and around the world as well.
By having the huge history that it has, it represents a very important thing in the world of trading, and though it has been around for a long time already, it does not seem to be going anywhere.