All of French Company Law: ordinary law of companies and specific regime for different types of companies

Company Law (en cours)

Pursuant to Article L. 424-2 of the Monetary and Financial Code, the manager of the multilateral trading system establishes the system's rules. Those rules, which must be transparent and non-discretionary, are required to ensure fair and orderly trading and set objective criteria for the efficient execution of orders within the system. They also establish the conditions for the admission of member …

Operating conditions

Pursuant to Article L. 424-2 of the Monetary and Financial Code, the manager of the multilateral trading system establishes the system's rules. Those rules, which must be transparent and non-discretionary, are required to ensure fair and orderly trading and set objective criteria for the efficient execution of orders within the system. They also establish the conditions for the admission of members and must be drafted in French or, in cases defined by the general regulations of the Financial Markets Authority, in another commonly used financial language.

The rules of the system, as well as their amendments, are subject to the approval of the Financial Markets Authority, which verifies their compliance with applicable legislative and regulatory provisions, as well as their proportionality to the objectives pursued. Furthermore, the system manager must take all necessary measures to promote the efficient and timely settlement of transactions carried out on the multilateral trading system. It is required to implement mechanisms to ensure the proper management of the system's technical operations, including effective emergency procedures to address potential malfunctions. Finally, the manager of the multilateral trading system must be adequately equipped to manage the risks to which it is exposed, implement appropriate mechanisms and systems to identify all significant risks that could compromise the proper functioning of the system, and establish effective measures to mitigate these risks.

The Financial Markets Authority may only prohibit access to a clearinghouse or a settlement and delivery system for financial instruments of any Member State if such prohibition is necessary to preserve the orderly functioning of the multilateral trading system and taking into account the conditions imposed on the settlement and delivery systems for financial instruments in 1° and 2° of Article L. 421-12 of the Monetary and Financial Code . Furthermore, the Financial Markets Authority must consider, in its assessment, the oversight exercised over the clearinghouses or central securities depositories established in a Member State of the European Union, in a State party to the agreement on the European Economic Area, or in a third country by central banks as supervisors of the clearing and settlement and delivery systems for financial instruments or by other competent authorities with respect to these systems .

The market undertaking may decide to delist an issuer's securities without being obliged to give notice or adhere to a scale of sanctions . This appears justified when the issuer does not provide accurate communication about its situation, thereby harming the credibility and reputation of the multilateral trading system managed by Euronext .

CA Versailles, 8 April 2021, LawLex202200011608JBJ.

Company Law (en cours)

141. Operating conditions

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141. Operating conditions

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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