12 September 2006

NYSE Euronext: Creating the first global exchange

NYSE Group and Euronext issued a document explaining the implications of a merger to create a global exchange via the implementation of a new holding company “NYSE Euronext”. The document explains that there will be no regulatory risks for the Euronext markets.

The Euronext markets will continue to be regulated exclusively under European regulation, and under the supervision of their national competent authorities. On its side the US regulator, SEC, will continue to ensure the supervision of US markets. For the avoidance of doubt, the SEC has already confirmed that the Sarbanes Oxley Act will continue to be exclusively applicable to companies listed or registered in the US.

The potential risk of a new legislative initiative with an “overspill” effect will be covered by a safeguard mechanism.

The merger will not subject non-US markets or their listed companies to US regulation and the Sarbanes-Oxley Act will not apply to entities listed on Euronext as a result of the combination.

The SEC confirmed in a Fact Sheet issued on June 16, 2006 that cross-border exchange mergers “would not result in the mandatory registration of a non-US exchange’s listed companies with the SEC or the mandatory compliance with the provisions of the federal securities laws, including the Sarbanes-Oxley Act that would derive from such registration.”

Document

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