Non-French companies which become listed on the Paris Bourse often apply for a direct listing without offering securities to the public.

Application for listing is made by a financial institution, which must ensure that a quotation is established and maintained.

In order to have such a quotation, the institution must dispose of a certain number of securities available in order to satisfy demands made on the Paris Bourse.

Alternatively, it may acquire securities on another market where the issuer is listed in order to satisfy demands (arbitrage procedure).

Delivery of securities on the Paris Bourse must be made within 3 days of the trade on the monthly settlement market (marche a reglement), there must be a contrat d'animation or a contrat de liquidite in order to maintain liquidity on the market.

There is no such requirement on the cash settlement market (marche au comptant).

The contents of this article are intended as a general guide. Specialist advice should be sought for your specific circumstances.

For further information contact Herve Letreguilly on +33 1 44 71 17 17, or enter a text search 'Shearman and Sterling' and 'Business Monitor'.