NYSE Euronext announced that from October 15, 2008 negotiable debt securities (commercial paper and certificates of deposit maturing in a year or less) will be listed on the regulated market of Euronext Paris.
This initiative comes in response to requests from the Paris financial community and has been implemented on the basis of close cooperation between Euronext Paris, the Bank of France, and the French market association AFTB-ACI France (Association du Forex et des Trésoriers de Banque).
As a result, the banks whose debt securities will be listed on a regulated market will meet one of the necessary conditions in order to be eligible for short-term refinancing at the Eurosystem.
The Euronext Paris debt securities market will be open from 7.00 a.m. to 7.00 pm for block trading of minimal amounts of €150,000. Transactions will be recorded by Euronext Paris and settled between the settlements agents of the market participants concerned.
Trades recorded by Euronext will be reported to the market on the following trading day, on an aggregated basis with data including opening and closing prices, highs and lows, and the amounts traded.
Around ten issuers, mostly banks, have already expressed their intention to participate in this initiative.
The market in negotiable debt securities currently represents an outstanding amount of approximately €450 billion.
Jean-François Théodore, Deputy Chief Executive Officer, NYSE Euronext, comments: “This initiative will make it possible to offer a more efficient, more transparent market for issuers of commercial paper and certificates of deposits. The registration of debt securities with Euronext Paris, offering a new asset class to investors on our markets, is a further example of our capacity to constantly adapt to our changing environment.” -- www.euronext.com
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