SBF Group restructures, specializing to meet international competition even more effectively

The Extraordinary General Meeting of SBF Group shareholders on May 27, 1999 voted to restructure the SBF-Paris Bourse group with effect from June 1. Since January 1, 1998, the SBF Group has brought France's four market operators and three clearing entities under a single roof. The market operators are SBF, Matif S.A., Monep S.A. and La Société du Nouveau Marché, while the clearing bodies are SBF, Matif S.A. and the Banque Centrale de Compensation (BCC), the latter handling OTC transactions. To make the most of existing synergies while benefiting from the flexibility and expertise of a structure specialized by business line and open to international alliances, the Extraordinary General Meeting approved: 1. The merger of SBF, Matif S.A., Monep S.A. and Société du Nouveau Marché into a single market operator, to be called ParisBourse SBF SA. With shareholders' funds of FF2 billion, ParisBourse SBF SA brings together all trading in equities (Premier, Second and Nouveau Marché), derivative products and commodities. Each market will maintain its own regulations, identity and membership structures, with centers of responsibility and business development established for each. All group personnel will be employees of ParisBourse SBF SA, and subject to the same collective labor agreement. 2. ParisBourse SBF SA will spin off all clearing activities, for both regulated markets and OTC transactions,to Banque Centrale de Compensation, a company trading under the name Clearnet SBF SA, with capital of FF800 million. Building on the expertise in Clearing and risk management available in Paris, Clearnet SBF SA 's aim is to become the core of a pan-European clearing body that will be the equivalent of the NSCC/GSCC in the United States. 3. At the same time, ParisBourse SBF SA technology and software engineering expertise will be grouped within Euronext SBF SA, bringing together all IT development teams. Euronext SBF SA is already a leading designer of stockmarket trading and clearing systems, with 40% of its revenues generated by the sale of software to some fifteen stockmarkets around the world, including four of the top ten equity markets and three of the five leading derivatives markets. Euronext SBF SA will continue to grow while maintaining its expertise at ParisBourse SBF S.A. for which it will centralize and manage all facilities management contracts.