SEC And Euronext Sign Regulatory Cooperation Agreement

by Glen Shapiro, LawAndTax-News.com, New York

29 January 2007

The US Securities and Exchange Commission and the College of Euronext Regulators last week announced the signing of a comprehensive arrangement to facilitate cooperation in market oversight, in view of the pending merger between the NYSE Group, Inc. and Euronext N.V. into NYSE Euronext, Inc.

Through this Memorandum of Understanding (MOU), the regulators expressed their commitment to close cooperation and collaboration to promote investor protection, foster market integrity, and maintain investor confidence and systemic stability in connection with the regulation of the combined group.

"The combination of major US and European stock exchanges marks a notable step in the continuing globalization of the world's capital markets," explained Chairman Christopher Cox, continuing:

"This arrangement reflects a modern approach to oversight of globally-active institutions and underscores the intent of securities regulators on both sides of the Atlantic to work together to coordinate our supervisory efforts."

Ethiopis Tafara, Director of the SEC's Office of International Affairs, added:

"This MOU establishes a framework for coordination, consultation, cooperation and the exchange of information in connection with oversight of NYSE Euronext and its markets. We look forward to working collaboratively with the College of Euronext Regulators as we work to fulfill our respective regulatory mandates."

This MOU will not go into effect until the publication by Euronext Paris S.A. of a declaration that the thresholds for acceptance of the NYSE Euronext offer have been reached.

The authorities making up the College of Euronext Regulators are the:

• Authority for the Financial Markets (AFM), Netherlands;
• Autorité des Marchés Financiers (AMF), France;
• Banking Finance and Insurance Commission (CBFA), Belgium;
• Comissão do Mercado de Valores Mobiliários (CMVM), Portugal; and
• Financial Services Authority (FSA), United Kingdom.

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