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Euronext Paris Wiki2Web Clarity Challenge

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Study Guide: Euronext Paris: Historical Evolution and Market Dynamics

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Euronext Paris: Historical Evolution and Market Dynamics Study Guide

Historical Evolution of the Paris Bourse (18th-19th Century)

The Paris stock market first gained prominence in the late 19th century with the trading of John Law's Company.

Answer: False

Explanation: The Paris stock market gained initial prominence in the early 18th century with John Law's Company, not the late 19th century.

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A government decree issued in 1724 is sometimes considered the starting point for the Paris stock market's permanent regulation.

Answer: True

Explanation: The government decree of 1724, which established the market's first permanent regulation, is occasionally cited as its starting point.

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From the second half of the 19th century, official stock markets in Paris were operated by the French government directly.

Answer: False

Explanation: From the second half of the 19th century, official stock markets in Paris were operated by the Compagnie des agents de change, not directly by the French government.

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An agent de change in 19th century Paris could trade for their own account, making the market dealer-driven.

Answer: False

Explanation: Agents de change were strictly brokers who could not trade for their own account, making the Paris Bourse an 'order-driven market'.

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The Commodities Exchange moved from the Paris Bourse building to the present Bourse de commerce in 1889.

Answer: True

Explanation: The Commodities Exchange, previously co-located with the Paris Bourse, relocated to the Bourse de commerce in 1889.

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'La Coulisse' was the official, regulated market that operated alongside the Paris Bourse until the late 20th century.

Answer: False

Explanation: 'La Coulisse' was an unofficial, parallel market that operated alongside the official Paris Bourse.

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The Paris securities markets first emerged on rue de Rivoli in the early 18th century.

Answer: False

Explanation: The Paris securities markets initially emerged on rue Quincampoix in the early 18th century.

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The market on rue Quincampoix was closed in 1720 due to excessive trading of government bonds.

Answer: False

Explanation: The market on rue Quincampoix was closed in 1720 due to a speculative bubble primarily involving shares of John Law's Company.

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The Paris market suspended operations during the French Revolution on June 27, 1793.

Answer: True

Explanation: Operations of the Paris market were suspended on June 27, 1793, during the French Revolution.

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Alexandre-Théodore Brongniart completed the construction of the Palais Brongniart in 1826.

Answer: False

Explanation: Alexandre-Théodore Brongniart died in 1813, and Éloi Labarre completed the Palais Brongniart between 1813 and 1826.

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The Palais Brongniart, the permanent home for the stock exchange, was owned by the City of Paris and continues to be.

Answer: True

Explanation: The Palais Brongniart, which became the permanent home for the stock exchange, has consistently been owned by the City of Paris.

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When was the institution, originally known as the Paris Bourse, founded?

Answer: September 24, 1724

Explanation: The institution, initially the Paris Bourse, was founded on September 24, 1724.

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What event is sometimes cited as the starting point for the Paris stock market's permanent regulation?

Answer: A government decree issued in 1724

Explanation: A government decree from 1724, which introduced the first permanent regulation, is sometimes considered the starting point for the Paris stock market's formal regulation.

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How were official stock markets in Paris managed from the second half of the 19th century?

Answer: By the Compagnie des agents de change

Explanation: From the latter half of the 19th century, official stock markets in Paris were managed by the Compagnie des agents de change.

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What characterized the primary role of an agent de change in the Paris Bourse?

Answer: They acted strictly as brokers, unable to trade for their own account.

Explanation: Agents de change in the Paris Bourse functioned exclusively as brokers, prohibited from trading on their own behalf.

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When did the Commodities Exchange move from the Paris Bourse building to the present Bourse de commerce?

Answer: 1889

Explanation: The Commodities Exchange relocated from the Paris Bourse building to the Bourse de commerce in 1889.

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What was 'La Coulisse' in the context of the Paris stock market?

Answer: A parallel, unofficial market

Explanation: 'La Coulisse' referred to an unofficial, parallel market operating alongside the official Paris Bourse.

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Where did the Paris securities markets first emerge in the early 18th century?

Answer: Rue Quincampoix

Explanation: The Paris securities markets initially appeared on rue Quincampoix in the early 18th century.

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Why was the market on rue Quincampoix closed by government decision on March 22, 1720?

Answer: Because of a speculative bubble in John Law's Company shares

Explanation: The market on rue Quincampoix was closed in 1720 due to a speculative bubble primarily involving John Law's Company shares.

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When did the Paris market suspend its operations amidst the French Revolution?

Answer: June 27, 1793

Explanation: The Paris market suspended operations on June 27, 1793, during the French Revolution.

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Who was the architect commissioned to design the permanent home for the stock exchange, the Palais Brongniart?

Answer: Alexandre-Théodore Brongniart

Explanation: Alexandre-Théodore Brongniart was commissioned to design the Palais Brongniart, the permanent home for the stock exchange.

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What architectural style characterized Brongniart's design for the Palais Brongniart?

Answer: Rectangular neoclassical Roman temple

Explanation: Brongniart's design for the Palais Brongniart featured a rectangular neoclassical Roman temple style.

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Who completed the construction of the Palais Brongniart after the original architect's death?

Answer: Éloi Labarre

Explanation: Éloi Labarre completed the construction of the Palais Brongniart after Alexandre-Théodore Brongniart's death.

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When did the stock exchange officially move into the Palais Brongniart?

Answer: November 6, 1826

Explanation: The stock exchange officially moved into the Palais Brongniart on November 6, 1826.

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Transformation and Euronext Integration (Late 19th - Early 21st Century)

Euronext Paris was originally founded as the Paris Bourse on September 22, 2000.

Answer: False

Explanation: The Paris Bourse was founded on September 24, 1724, and rebranded as Euronext Paris on September 22, 2000.

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The Paris Bourse was a co-founder of Euronext, along with the London Stock Exchange and the Frankfurt Stock Exchange.

Answer: False

Explanation: The Paris Bourse co-founded Euronext with the Amsterdam Stock Exchange and the Brussels Stock Exchange, not the London or Frankfurt Stock Exchanges.

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The Paris Bourse began implementing an electronic trading system in 1986, which was fully automated by 1989.

Answer: True

Explanation: The Paris Bourse initiated an electronic trading system in 1986, achieving full automation of quotations by 1989.

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The Palais Brongniart housed MATIF and MONEP until they became fully automated in 1998.

Answer: True

Explanation: MATIF and MONEP, French financial derivatives exchanges, were located in the Palais Brongniart until their full automation in 1998.

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The 1988 reform of the Paris stock exchange transferred its ownership to the French Ministry of Finance.

Answer: False

Explanation: The 1988 reform transferred ownership of the Paris stock exchange to the Compagnie des agents de change, which was renamed SBF, not the French Ministry of Finance.

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The Société des Bourses Françaises (SBF) was a leading participant in the merger that formed Euronext in 2000.

Answer: True

Explanation: The Société des Bourses Françaises (SBF) played a significant role in the merger that established Euronext in 2000.

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Which stock exchanges co-founded Euronext along with the Paris Bourse?

Answer: Amsterdam Stock Exchange and Brussels Stock Exchange

Explanation: The Paris Bourse, Amsterdam Stock Exchange, and Brussels Stock Exchange were co-founders of Euronext.

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When did the quotations on the Paris Bourse become fully automated?

Answer: 1989

Explanation: Quotations on the Paris Bourse achieved full automation by 1989.

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What significant reform occurred in the governance and ownership of the Paris stock exchange in 1988?

Answer: Ownership was transferred to the Compagnie des agents de change, which renamed itself SBF.

Explanation: The 1988 reform involved transferring ownership of the Paris stock exchange to the Compagnie des agents de change, which subsequently adopted the name SBF.

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What is the current use of the Palais Brongniart after Euronext ceased using it?

Answer: It was repurposed as an events venue.

Explanation: After Euronext vacated the Palais Brongniart, the City of Paris repurposed it as an events venue.

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Euronext Paris: Current Structure and Governance

Euronext Paris is a regulated securities trading venue that was formerly known as the Paris Bourse.

Answer: True

Explanation: Euronext Paris is identified as a regulated securities trading venue, previously known as the Paris Bourse.

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The primary currency used for trading on Euronext Paris is the British Pound (GBP).

Answer: False

Explanation: The Euro (EUR) is the primary currency utilized for trading on Euronext Paris.

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Delphine d'Amarzit serves as the Chief Executive Officer (CEO) of Euronext Paris.

Answer: True

Explanation: Delphine d'Amarzit holds the position of Chief Executive Officer (CEO) of Euronext Paris.

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Euronext Paris moved its headquarters to La Défense in 2015, and its former building on rue Cambon was repurposed for Chanel offices.

Answer: True

Explanation: Euronext Paris relocated its headquarters to La Défense in 2015, with the former rue Cambon building subsequently housing Chanel offices.

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All products traded on Euronext Paris and its members utilize the electronic trading system known as NSC.

Answer: True

Explanation: The electronic trading system NSC (Nouveau Système de Cotation) is employed for all products traded on Euronext Paris and by its members.

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Transactions on Euronext Paris are cleared through Euroclear, and the cash settlement period is T+3.

Answer: False

Explanation: Transactions on Euronext Paris are cleared through LCH.Clearnet, and the cash settlement period is T+2, not T+3.

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The standard trading hours for Euronext Paris are from 8:00 am to 4:00 pm CET, Monday to Friday.

Answer: False

Explanation: Standard trading hours for Euronext Paris are from 9:00 am to 5:30 pm CET, Monday to Friday.

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What was Euronext Paris formerly known as?

Answer: Paris Bourse

Explanation: Euronext Paris was previously known as the Paris Bourse.

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Who is the current Chief Executive Officer of Euronext Paris?

Answer: Delphine d'Amarzit

Explanation: Delphine d'Amarzit is the current Chief Executive Officer of Euronext Paris.

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What is the primary currency used for trading on Euronext Paris?

Answer: Euro (EUR)

Explanation: The Euro (EUR) is the primary currency for trading on Euronext Paris.

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When did Euronext Paris move its headquarters from rue Cambon to La Défense?

Answer: 2015

Explanation: Euronext Paris relocated its headquarters from rue Cambon to La Défense in 2015.

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Which electronic trading system is used for all products traded on Euronext Paris and its members?

Answer: NSC

Explanation: The NSC (Nouveau Système de Cotation) electronic trading system is used for all products traded on Euronext Paris and its members.

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Which entity is responsible for clearing transactions on Euronext Paris?

Answer: LCH.Clearnet

Explanation: LCH.Clearnet is the entity responsible for clearing transactions on Euronext Paris.

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What is the cash settlement period for transactions on Euronext Paris?

Answer: T+2

Explanation: The cash settlement period for transactions on Euronext Paris is T+2.

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What are the standard trading hours for Euronext Paris?

Answer: 9:00 am to 5:30 pm CET

Explanation: The standard trading hours for Euronext Paris are from 9:00 am to 5:30 pm CET.

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Equity Market Segments and Key Indices

The CAC 40, CAC Next 20, CAC Mid 60, and CAC Small are all key indices associated with Euronext Paris.

Answer: True

Explanation: The CAC 40, CAC Next 20, CAC Mid 60, and CAC Small are recognized as significant indices linked to Euronext Paris.

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The Premier Marché lists medium-sized companies, while the Second Marché includes large French and foreign companies.

Answer: False

Explanation: The Premier Marché lists large French and foreign companies, while the Second Marché lists medium-sized companies.

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The Nouveau Marché is designed for fast-growing start-up companies and is linked to Euro.nm.

Answer: True

Explanation: The Nouveau Marché is indeed intended for fast-growing start-up companies and is connected to Euro.nm.

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The Marché Libre is a regulated market for securities not listed on the Premier, Second, or Nouveau Marché.

Answer: False

Explanation: The Marché Libre is a non-regulated third market for securities not listed on the Premier, Second, or Nouveau Marché.

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The SBF 120 Index is a broader benchmark for investment funds and includes all components of the CAC 40.

Answer: True

Explanation: The SBF 120 Index serves as a broader benchmark for investment funds, incorporating all components of the CAC 40 along with additional stocks.

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The SBF 250 index is structured by sector and measures the short-term performance of equity portfolios.

Answer: False

Explanation: The SBF 250 index measures the long-term performance of equity portfolios and is structured by sector.

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The MIDCAC index includes 100 of the most liquid large-cap stocks traded on the Premier Marché.

Answer: False

Explanation: The MIDCAC index comprises 100 of the most liquid medium-sized stocks traded on both the Premier Marché and the Nouveau Marché.

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Which of the following is NOT a key index associated with Euronext Paris?

Answer: DAX 30

Explanation: The CAC 40, CAC Next 20, CAC Mid 60, and CAC Small are key indices associated with Euronext Paris; the DAX 30 is not.

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Which section of the French equities market, managed by Euronext Paris, lists large French and foreign companies?

Answer: Premier Marché

Explanation: The Premier Marché section of the French equities market lists large French and foreign companies.

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What is the purpose of the Nouveau Marché?

Answer: To provide a platform for fast-growing start-up companies

Explanation: The Nouveau Marché is designed to offer a platform for fast-growing start-up companies.

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Which market is a non-regulated third market administered by Euronext Paris for unlisted securities?

Answer: Marché Libre

Explanation: The Marché Libre is a non-regulated third market administered by Euronext Paris for unlisted securities.

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What is the primary benchmark index calculated by Euronext Paris?

Answer: CAC 40

Explanation: The CAC 40 is the primary benchmark index calculated by Euronext Paris.

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What does the SBF 120 Index include in addition to the components of the CAC 40?

Answer: Additional stocks

Explanation: The SBF 120 Index incorporates additional stocks beyond the components of the CAC 40.

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What is the purpose of the SBF 250 index?

Answer: To measure the long-term performance of equity portfolios.

Explanation: The SBF 250 index is designed to measure the long-term performance of equity portfolios.

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What types of stocks does the MIDCAC index represent?

Answer: 100 of the most liquid medium-sized stocks

Explanation: The MIDCAC index represents 100 of the most liquid medium-sized stocks.

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Derivatives and Commodities Markets

MATIF, operated by Euronext Paris, primarily trades equity and index futures and options.

Answer: False

Explanation: MATIF, operated by Euronext Paris, trades futures and options on interest rate products and commodities, not primarily equity and index futures.

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MONEP trades short-term and long-term stock options, as well as futures and options on Dow Jones indices.

Answer: True

Explanation: MONEP facilitates trading in short-term and long-term stock options, alongside futures and options on Dow Jones indices.

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Euronext Commodities offers futures on European rapeseed, milling wheat, and dairy products.

Answer: True

Explanation: Euronext Commodities provides futures contracts on products such as European rapeseed, milling wheat, and dairy.

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What types of financial products are traded on MATIF, operated by Euronext Paris?

Answer: Futures and options on interest rate products and commodities

Explanation: MATIF, under Euronext Paris, trades futures and options on interest rate products and commodities.

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What derivative products does MONEP trade?

Answer: Short-term and long-term stock options, and futures/options on Dow Jones indices

Explanation: MONEP trades short-term and long-term stock options, as well as futures and options on Dow Jones indices.

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Which of the following is NOT a commodity product offered by Euronext Commodities?

Answer: Crude oil

Explanation: Euronext Commodities offers futures on European rapeseed, milling wheat, and dairy, but not crude oil.

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Market Performance and Statistics

As of December 2023, Euronext Paris was Europe's largest stock exchange by market capitalization, surpassing the London Stock Exchange.

Answer: False

Explanation: As of December 2023, Euronext Paris ranked as Europe's second-largest stock exchange by market capitalization, behind the London Stock Exchange.

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In 2022, Euronext Paris had 795 listed companies with a combined market capitalization exceeding US$4.58 trillion.

Answer: True

Explanation: In 2022, Euronext Paris reported 795 listed companies with a total market capitalization surpassing US$4.58 trillion.

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For the fiscal year ending December 2004, Euronext Paris recorded sales of US$522 million, which was an increase from the previous year.

Answer: False

Explanation: Euronext Paris reported sales of US$522 million for the fiscal year ending December 2004, representing a 12.9% decrease from 2003.

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As of February 28, 2007, the total market capitalization of listed companies on Euronext Paris was US$2.9 trillion.

Answer: True

Explanation: On February 28, 2007, the aggregate market capitalization of companies listed on Euronext Paris amounted to US$2.9 trillion.

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The average daily trading value of Euronext Paris's combined markets as of February 28, 2007, was approximately €77 million.

Answer: False

Explanation: As of February 28, 2007, the average daily trading value of Euronext Paris's combined markets was approximately US$102 billion or €77 billion, not €77 million.

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As of December 2023, how did Euronext Paris rank among European stock exchanges by market capitalization?

Answer: Second

Explanation: As of December 2023, Euronext Paris was the second-largest stock exchange in Europe by market capitalization.

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What was the combined market capitalization of companies listed on Euronext Paris as of 2022?

Answer: Exceeding US$4.58 trillion

Explanation: In 2022, the combined market capitalization of companies listed on Euronext Paris exceeded US$4.58 trillion.

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What were the sales figures for Euronext Paris for the fiscal year ending December 2004?

Answer: US$522 million

Explanation: Euronext Paris recorded sales of US$522 million for the fiscal year ending December 2004.

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What was the average daily trading value of Euronext Paris's combined markets as of February 28, 2007?

Answer: Approximately US$102 billion

Explanation: As of February 28, 2007, the average daily trading value of Euronext Paris's combined markets was approximately US$102 billion.

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