1

Financial Centersin a Multi-Polar World

Arnaud de BRESSONCEO

Paris EUROPLACE

Dubai, December 15th, 2010DIFC Conference Center

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Lessons Learned from the Financial Crisis

Paris has been resilient in this crisis:

- Efficient Regulation.

-French “Global Financial Services” Banking Model

- A Strong Asset Management Pool: Paris is no. 2 in the world in assetsunder management.

- Worldwide Capacities in Education and Research, with a special focuson risk management and financial innovation.

3Equity Markets - NYSE Euronext

Welcoming International Issuers in Europe

Source: Word Stock Exchange, Feb 2010

NYSE Euronext,the Largest Stock Market in the World

(in terms of market capitalisation)

NYSE Euronext(Listed products in NYSE Euronext Europe)

Equity(Listed companies)

Domesticof which Paris

1 272952

Foreignof which Paris

199111

Total listed companies 1 471

Bonds(number of listedbonds)

Gov. Bondsof which Paris

433237

3 5111 889

Other Bondsof which Paris

Total Bonds 3 944

StructuredProducts(number of securities)

Year to date 2010of which Paris

14 0787 369

ETF(number of funds)

Year to date 2010of which Paris

517417

NYSE Euronext Europe’s branch lists more than1,400 companies, of which 200 are foreign (non-European) companies.

NYSE

Euronext

T.S.E NASDAQ

OMX

L.S.E Shanghai SE Hong Kong

Exchange

Source: NYSE Euronext, Q1, 2010

3

44

Strong Development ofFrench Government Debt Market

(Negotiable government debt outstanding)

Fixed Income Markets - Investment Opportunities

0

200

400

600

800

1000

1200

1400

2001

2002

2003

2004

2005

2006

2007

2008

2009

31/0

1/201

0

OAT BTAN BTF

55

United Kingdom27%

Germany10%

Netherlands9%

Others21% France

33%

In % of total international issues

Paris, one of the Worldwide Leader in Terms of Bonds Issue

France is the second position worldwide forInternational bonds issuance in 2009

France Leads European Corporate Bonds Markets

6Asset Management Industry

7

2,4

6,0

8,6

12,5

13.010,5

2003 2004 2005 2007 2008 2009

Growth in FrenchPrivate Equity Market(in terms of investment, in € billions)

Source : AFIC, EVCA

Investments by Country

of Destination in Europe(in terms of % of the total investment)

A Growing Private Equity Market

Netherlands

8%

Italy

7%

Sweden

6%

Spain

5%Others

12% UK

35%

France

16%

Germany

11%

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Growing Commodities Markets

Bluenext : the French Carbon Markets

French Electricity Markets

9

New Developing Sectors –Socially Responsible Investments (SRI)

0

5

10

15

20

25

30

35

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

0

50

100

150

200

250

Assets (in € bn) Number of funds

SRI in France(in terms of assets and number of funds)

SRI Funds in Europe(in terms % of total European assets)

Others

4%

UK

20%Belgium

15%

Italy

5%

Netherlands

6%Germany

6%

Sweden

7%

Switzerland

14%

France

23%

Source: Novethic, 2009

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Project Financing

Public-Private Finance in Europe(2001-2008, in %, Value of Signed Contracts)

France11%

Spain11%

Italy10%Ireland

9%Greece

7%

Germany6%

Other5%

Netherlands5%

Others17%

Source: Public Private Finance, DLA Piper

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Islamic Finance – Work in Progress

Sharia Compliant Funds

No specific tax obstacle

No regulatory constraints:

French Market Authority accepts Shariah funds (July 2007).

Listing on NYSE Euronext is possible .

Several Shariah compliant ETFs and funds are listed in Paris.

Real Estate Murabaha : Favorable Tax treatment (January 2009 and July 2010)

Amount of operations: around 2 to 3 billion dollars in the last five years)

Over 6 million French Muslims.

Historical and political links of France with the MENA region

Long experience in the region.

Strong and renowned French players in Islamic Finance (BNP Paribas Najmah,

Calyon…).

Code law French legal environment closer to the Islamic law than the Common law.

French mutual insurance system close to the Islamic Takaful insurance.

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Elements of Background: French Strengths

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Sukuk French Market Authority accepts sukuk listing (July 2008);

NYSE Euronext has issued a memo on the sukuk segment (July2009);

Tax treatment (Feb. 2009) similar to conventional bonds.

AAOIFI Shariah Board has validated 2 Paris EUROPLACE SukukStructure governed by French law

AAOIFI Standards Translation into French Paris EUROPLACE has signed a MoU with the AAOIFI in January 2009

to translate the AAOIFI standards from Arabic to French.

Facilitate the implementation of the Islamic banks in Paris

Islamic Finance – Work in Progress

International Cooperation

Global crisis requires global solutions need for cooperationbetween financial centers

Paris EUROPLACE MoU with international financial centers: Dubaï;

Qatar;

Moscow;

Almaty – Kazakhstan;

Shanghai ;

Abu Dhabi (project).

Fostering a fruitful dialog between financial centers