Media Centre

 

FSA/PN/097/2006
Lisbon, 27 September 2006

The chair of the SEC and the Chairman’s Committee of the Euronext regulators met in Lisbon today, in light of a potential combination between the NYSE Group, Inc. and Euronext N.V. into NYSE Euronext. They discussed the development of a possible framework for consultation and mutual cooperation in the interest of meeting their respective regulatory mandates in the areas of investor protection, orderly functioning and integrity of the markets. The regulators also affirmed that joint ownership or affiliation of markets alone would not lead to regulation from one jurisdiction becoming applicable in the other and stated their shared belief in the importance of local regulation of local markets.

On 1 June 2006, the NYSE Group and Euronext NV announced the signing of a combination agreement in order to create a new group, NYSE Euronext Inc. The holding company is proposed to be incorporated in the US, the shares of which would be listed on NYSE and on Euronext Paris. The proposed combination is subject to prior authorizations by the respective Euronext Regulators and, in some cases, the Ministers of Finance, on the European side and by the SEC in the United States.

Regulators are not taking a position on the proposed combination. They recognize that shareholders will ultimately decide on whether the proposed combination will go forward. Therefore, the framework for regulatory cooperation would come into effect once shareholders and relevant authorities have given their final decisions.

Regulators are conscious that markets are globalizing, to the potential benefit of investors everywhere, making increased international cooperation of regulators essential.

Carlos Tavares, Chairman of the CMVM and coordinator of Euronext Regulators said:

"The European Regulators and the SEC clearly converged on the need of a strong cooperation between the regulators, grounded on a common approach to the challenges raised by the proposed combination and market development. We welcome SEC’s willingness to base such cooperation on a common respect for the autonomy and scope of each national regulation and jurisdiction".

Notes for editors

  1. The SEC was represented by Chairman Christopher Cox. The Chairman’s Committee of the Euronext regulators was represented by:

    • Commissioner Paul Koster, Authority for the Financial Markets (AFM), Netherlands;

    • Chairman Michel Prada, Autorité des Marchés Financiers (AMF), France;

    • Chairman Eddy Wymeersch, Commission, Bancaire, Financière et des Assurances (CBFA), Belgium;

    • Chairman Carlos Tavares, Comissão do Mercado de Valores Mobiliários (CMVM), Portugal; and

    • Director of Markets Division Sally Dewar, Financial Services Authority (FSA), United Kingdom.

  2. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.

  3. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.

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