Paris Region, A Unique, Global And Innovative Financial Place Ny Feb 2011

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key facts and figures about the attractiveness of the Paris financial place and innovation in finance

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Paris Region, A Unique, Global And Innovative Financial Place Ny Feb 2011

  1. 1. Paris Region, A Unique, Global and Innovative Financial Place New York, February 2011
  2. 2. Content Paris Region, A Unique Location • At the Heart of a 500 M Customers Market……………………………………………………………………………………....…….page 4 • The 2nd Largest Concentration of Fortune 500 in the World……………………………………………………..………....…page 5 • An Innovation Hot Spot………………………………………………………………………………………………….…………………………page 6 • A smart Regulation…………………………………………………………………………………………………………………………………..page 7 • Focus on the European Securities and Markets Authority (ESMA)……………………………………………………………page 8 • An Attractive Location For US-based Companies……………………………………………………………………………….…....page 9 • Testimonial of Roy L. Heenan, Chairman of Heenan Blaikie………………………………..………………………………….page 10 Paris Region, A Global Financial Place • A Leading Asset Management Industry……………………………………………………………………………………….…………page 12 • A Resilient French Banking Industry…………………………………………………………………………………………….…………page 13 • A Major European Online Trading Market……………………………………………………………………………………………..page 14 • The Largest Pan-European Private Equity Market…………………………………………………………………….……………page 15 • Being listed on the NYSE Euronext in Europe, a custom-tailored offer to the US companies ..………………page 16 Paris Region, An Innovative Financial Place • The Financial Innovation Cluster initiative……………………………………………………………………………………...……..page 18 • Case Study: Finance Active……………………………………………………………………………………………………………………..page 22 Our Services • Our Agency supports US-based Companies with Four main Services……………………………………………….…….page 24 PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 2
  3. 3. Paris Region, A Unique Location
  4. 4. At the Heart of a 500 M Customers Market Key figures GDP : € 552 billion GDP / inhabitant: € 47,000 4.7 % of European GDP 11.7 million inhabitants 814,600 companies 130,500 new companies created Source : French Institute of Statistics 2010 Testimonial “The quality of the people, the quality of the connections, the quality of the environment and the quality of life: Paris Region is the perfect European location for the headquarters of any international corporation.” Michel Pébereau, Chairman of the Board of Directors of BNP Paribas PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 4
  5. 5. The 2nd Largest Concentration of Fortune 500 in the World Paris Region shelters 38 headquarters of the 500 most powerful companies in the world. Headquarters – Fortune 500 world ranking 2010 Source : Fortune Magazine, Global 500 Companies, August 2010 PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 5
  6. 6. A Unique Innovation Hot Spot Europe’s leading science & technology hub to open a worldwide level R&D center in Paris in 2011 Europe’s no. 1 region in terms of R&D expenditures (8% of ”Looking at the quality of graduates and at the quality of European R&D expenditure technical talent, the business talent, the public policy talents […]it’s clearly the right thing to do”[…] We are Europe’s no. 1 region for scientific publications, inviting start-ups to come to Google in Paris to build their accounting for 5% of European publications businesses […] We do this relatively rarely and so, from my perspective, this is a historic moment.” 7% of EU’s combined private and public research Eric Schmidt, CEO of Google workforce Source: speach at Sciences-Po, 2010 Sept 9. Attracting researchers from all over the world and Save the Date! 1st Fortnight-Dec 2011 over 80 nationalities PARIS REGION INNOVATION TOUR - 7th Edition 33 of the 50 French Nobel Prizes A unique event in Europe, PRIT 2010 brought together 850 people from 28 nationalities who are prime movers in A world reference in mathematics innovation around conferences, workshops and exchange of best practices. Research sectors diversity: automotive industry, ICT, pharmaceuticals, aerospace, agribusiness … 90 international clusters came to meet with the 8 R&D Paris clusters to explore new ways of working together 8 R&D clusters internationally. Source: ww.prit2010.eu PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 6
  7. 7. A Simplified and Harmonized Regulation→ Current EU Finance Supervisory New Organization (2011 – Q1) Main goals: European Systemic Risk Council (ESRC) ECB Board + Presidents of EBA/EIOPA/ESMA + EU Commission • Simplification • Harmonization • Centralization Exchange of information Advice / warnings 2 mainstays: European System of Financial Supervisors (ESFS) •New authorities Launching of 3 pan-European agencies (Semester 1- 2011) with binding powers • Effective and Euro Banking Association European Insurance and European Securities and coordinate regulation Occupational Pensions Authority Markets Authority on systemic risk (EBA) (EIOPA) (ESMA) National Banking National Insurance National Markets Supervisory Authorities Supervisory Authorities Supervisory Authorities France: “A.C.P.” France: “A.C.P.” France: “A.M.F.” (Financial (formerly called “C.E.C.E.I.”) (formerly called “A.C.A.M.”) Markets Authority) PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 Source: Revue Banque mag, Dec 2010 7
  8. 8. The European Securities and Markets Authority (ESMA)→ Focus on a new Paris-based Authority with binding powers A key contributor to the financial stability of the EU What is ESMA’s role?Cross-representation • Safeguard the stability of the EU’sClear mandates financial market ESMA provides: • Develop a single rule book in Europe ESRC provides • information on companies • Strengthen international supervisory coop° • analysis and markets • warnings • Ensure the consistent treatment of investors • identify risks • recommendations • diminish possible threats across the EU • Promote equal conditions of competition for Cross-representation financial services providers Clear mandates What are the new competences and powers of ESMA? Premised in Paris • Draft technical standards that are legally binding across the EU Launched in 2011 • Launch a fast track procedure to ensure consistent application of EU Law Full-time Chair on a • Resolve disagreements between national authorities 5 years term • Responsibilities for consumer protection Independent body • A new supervisory role for credit rating agencies (including FSA London) 24 millions€ budget • Ability to enter into arrangements with supervisory authorities, international 70 staff organizations and the administrations of 3rd countries. • Emergency powers 8 PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 Source: www.esma.europa.eu
  9. 9. An Attractive Location For US-based Companies Since 2008, +50 US companies have benefited from our services Financial Services CV Starr (Investment & Insurance agencies) Louis Capital Market (brokerage services) Blackstone Group (Investment & advisory firm) Duff & Phelps (Financial advisory) FXCM Holding LLC (Forex trading) BNY Mellon (Assets management & securities servicing) Wall Street System (Treasury, trade processing & cross-asset back-office) Keiretsu Forum (Angel investor network) Jefferson Wells (Risk advisory, tax, and finance and accounting) Marketing & Communication RockCorps (Innovative social media) ICT Google ( R&D centre) Transport General Electric (Transportation) Engineering consultancy firm Osisoft Inc IT / Hardware Equinix Inc (Data Centre) Others Tesla Motors (Electric vehicles) Chipotle Mexican grill PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 Source: « non-exhaustive ARD’ results », 2008-2010 9
  10. 10. Case Study: Heenan Blaikie new Paris office→ Legal Services Going Global In January 2011, Heenan Blaikie reinforced its practice in Paris, thereby becoming one of the leading international business law firms operating in France with the capacity to answer the requirements of its African clients, among others. Why is Paris the centerpiece of your International growth strategy? Heenan Blaikie - Key Figures « Our business activities in Europe and Africa had been growing at such a 16 new Lawyers in the Paris office tremendous pace that we needed a larger presence in Paris. This expansion Paris and Singapore are the focus points of represents an important step of our international growth strategy. It will enable HB international growth strategy our clients to benefit from the services of 16 experienced lawyers who will assist 1 year of informal collaboration prior to them in their operations and development in Europe and Africa. » the grand opening 550 Lawyers worldwide « The French capital is at the commercial and geopolitical crossroads of the American, European and African continents. This represents an asset from which our clients can benefit to fulfill their business objectives. » The Paris office specializes in: « The lawyers in our Paris office have been chosen because they share our Financing & restructurings culture, which is based on service excellence. » business Law – commercial Law Private Equity & Capital Venture Roy L. Heenan, Founding Partner, Chairman of Heenan Blaikie Merger & Acquisitions / Joint-ventures Litigation & international arbitration PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 Source: www.heenanblaikie.com 10
  11. 11. Paris Region, A Global Financial Place
  12. 12. A Leading Asset Management Industry € 2,600 billion assets under management (Dec 2009) The French Big 4 are backed by the largest banks and insurance groups. Two of them have more than Number 1 in Europe for fund management: 23% of assets managed in doubled in size over the past 5 years Europe ahead of Germany (20%) and UK (16%) France is the European leader with 4 managers (USD 4.4tn) ahead of Germany with 2 managers (USD 3.1tn), the UK and Switzerland with 1 manager each (less than USD 1tn). Number 2 in Europe for fund domiciliation: 21% of assets domiciled 2nd fund management centre in the world behind the USA: 11,300 investment funds including 8,000 UCITS Source : AFG, July, 2010 They chose the Paris Region PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 12
  13. 13. A Resilient French Banking Industry According to Paris EUROPLACE (Oct., 2010), the French “Global Financial Services” Banking Model is based on diversification supported by retail banking for the distribution of financial products. During the crisis, French bank assets depreciation totalled € 20 billion, compared to € 35 billion in Germany, € 180 billion in the UK and € 350 billion in the USA French Global Universal Banking Groups They Choose the Paris Region Credit Agricole Group (Mutual Banking Group) - Net Banking Income 2010: US$ 31.3 billion - 9th largest Bank in the world by Tier 1 capital - Number 1 Retail Banking Group in France, 2nd in Europe - 59 million customers - 3 domestic markets: France, Italy, Greece BNP Paribas Save the Date ! - Net Banking Income 2010, Q1-Q3: US$ 10.8 billion - Number 1 in the eurozone by deposits. March 22nd 2011, Paris : « The Future of Banking », the - 4 domestic markets: France, Italy, Belgium, Luxemburg Economist Conference http://www.economistconferences.com/banking July 5th – 6th 2011, Paris : International Financial Forum, Société Générale Paris, Paris EUROPLACE http://www.paris-europlace.net/events.htm - Net Banking Income 2009 : US$ 21,7 billion - 32 million customers Seminars organized by the French Banking Federation (http://www.fbf.fr), the Revue Banque magazine http://www.revue-banque.fr and the L’AGEFI French media http://www.agefi.fr PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 13
  14. 14. A Major European Online Trading Market Cortal Consors SA is a European broker in personal investing Boursorama is a European online financial services company. and online trading. Cortal Consors is a subsidiary of BNP Boursorama is a subsidiary of Societe Generale. Paribas. Website : https://www.cortalconsors.fr Website : http://www.boursorama.com Easy Bourse is a subsidiary of La Banque Postale Website: http://www.easybourse.com The main shareholder of Fortuneo is Credit Mutuel Arkea. Credit Mutuel is the second largest French retail bank. Website : http://www.fortuneo.fr Save the Date ! March 25th – 26th 2011 12th Technical Analysis trade show September 16th – 17th 2011 6h Annual Paris trading show Exhibitors PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 Source: www.salonat.com 14
  15. 15. The Largest European Private Equity Market € 80 billion: largest market in Continental Europe € 10 billion invested per year in 1,500 companies (period: 2004 – 2009) € 1,571 million invested (+51%) in 763 companies (Q1-Q3, 2010: ) Save the Date ! April 28th 2011: Annual Conference of French Private Equity, Paris, Palais Brongniart PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 15
  16. 16. Being listed on the NYSE Euronext in Europe, a custom-tailored offerto the US companies NYSE Euronext (NYX), the holding company created by the Since 2008, a cost-effective Fast Path process enables US- combination of NYSE Group, Inc. and Euronext N.V., was listed companies to complete a cross-listing on NYSE launched on April 4, 2007. Euronext in Paris. With more than 8,000 listed issues, NYSE Euronext’s equities Philip Morris International, March 2008 markets – the New York Stock Exchange, NYSE Euronext, NYSE Anheuser-Busch, April 2008 Amex, NYSE Alternext and NYSE Arca – represent nearly 40% Companhia Vale do Rio Doce, July 2008 of the world’s equities trading, the most liquidity of any global exchange group. Cliffs Natural Resources Inc., April 2009 Weatherford International Ltd, Oct. 2009 NYSE Euronext also operates NYSE Liffe, the leading PartnerRE, Dec. 2009 European derivatives business and the world’s 2nd largest by AgFeed Industries Inc., March 2010 value of trading. NYSE Euronext is in the S&P 500 index and is Knight Capital, May 2010 the only exchange operator in the S&P 100 index and Fortune Watsco, October 2010 500. NYSE Euronext is in the S&P 500 index and is the only Toreador Resources, December 2010 Exchange Operator in the S&P 100 index and Fortune 500 We do support US-Listed companies that choose the Fast Path through the organization of common road-shows in America and in Europe Source : NYSE Euronext, Jan 2011 PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 16
  17. 17. Paris Region, An Innovative Financial Place
  18. 18. The Finance Innovation Cluster InitiativeThe Finance Innovation cluster supports industrial and research projects related to the financial services industry Innovation in Finance Finance Innovation Cluster - Main drivers Create synergies and the necessary conditions to foster 1,000 innovative financial businesses (less than 5 years old) innovative financial projects identified in the Paris Region covering all financial sectors Support the development and financing of SME’s and 100 industrial and research projects approved by a selection innovation committee of experts Develop an ecosystem by organizing exchanges between large firms, SME’s and academics 5 main areas of innovation: SME financing tools, Asset and Risk Evaluation, IT applied to Finance, Financial Analysis & Information, Reinforce the globally-renowned French research and training Finance & Sustainable Development, Monetics hub in finance and economics Sources of public funds: OSEO, FUI, ANR, R&D tax credits Contribute to the emergence of projects in social and environmental finance (carbon trading, climate indices, micro- → US companies that can benefit from these highy competitive finance) incentives Promote international business opportunities Founders PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 18
  19. 19. The Finance Innovation Cluster initiative→ supports innovative IT/Finance projects Sector Project name Company name Innovative project description Box & Automation SWIFT-based solutions allowing international groups a global and day-to-day visibility C2BOX Solutions of cash-flows Real-time treatment of market data through an FPGA chip system integrated into QUANTFPGA QuantHouse Quanthouse’s trading platform FRIENDSCLEAR FriendsClear Peer-to-peer loan financing platform for entrepreneurs (micro credit) TPE Loov Laser Loyalty Specific manetary system for virtual social networks (Collaborative - FUI Project) IT / Finance New supplies software products and innovative services for preventative management VISION SOCIAL Alto of working conditions Phoenix Financial Phoenix Global solution for managing electronic trading orders. Services AMAFI BBSP Massive analysis of financial series Source : Finance Innovation, January 2011 http://www.finance-innovation.org/projets_label_en.htm PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 19
  20. 20. The Finance Innovation Cluster Initiative→ supports Asset & Risk Evaluation Projects Sector Project name Company name Description Innovative solutions facilitating financial management, debt surveillance and FXENT Finance Active decision-making support STAR Cid Consulting Compliance monitoring software for financial institutions Natural classification of investment funds MULTIRATINGS N/A Paris-MHM OTC Conseil Development of solutions for managing long term market risks CRIS Zéliade Systems Independent valuation and risk analysis platform for credit derivativesAsset & Riskevaluation Azurris Risk Solution dedicated to help corporates reduce the cost and raise the efficiency R=MC2 of their hedging policy against financial risks (forex, commodities, interest rates) Advantage Risk control and valuation methodology for banks C2R Riskalis Independent valuation platform for credit derivatives and illiquid structured CREDINEXT Pricing Partners bonds Taïga Collateral Development of the first notation and scoring platform of SME’s Working SCORING TAIGA Management Capital Source : Finance Innovation, January 2011 http://www.finance-innovation.org/projets_label_en.htm PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 20
  21. 21. The Finance Innovation Cluster Initiative→ supports Financial Analysis, SME Financing tools and Sustainable Finance Sector Project name Company name Description European financial and extra-financial reporting platform or listed companies, in EFIREP Hégoa-Solutions XBRLFinancialAnalysis & Independent Equity Research provider covering the 500 largest European stocks ALPHAVALUE N/Ainformationprojects Dynamic tool for the financial analysis and investment decision, dedicated to OPALE RESEARCH Opale Finance small and medium listed companies (intranet and extranet) Generis Capital Bond financing technique for innovative and technological startups VENTURE Loan PartnersSME Financingtools Scoring platform within a portal dedicated to SME credit brokerage FINANCEMENT- Financement- ENTREPRISE.COM entreprise Finance & Software risk management energy and carbon for companies. Sustainable FLEXINERGIE Evolution énergie Development Finance & Risk control methodology dedicated to Micro Finance Institutions Risk Manager Sustainable OPENSPACE Sans Frontières Development Source : Finance Innovation, January 2011 http://www.finance-innovation.org/projets_label_en.htm PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 21
  22. 22. The Finance Innovation Initiative→ Case study : Finance Active Finance active is an innovative company Created in 2000 that combines financial expertise and the technologies in order to provide a 100 employees : high quality service to financial decision makers. Financial R&D, innovative technologies, customer financial assistance Services SaaS dedicated to interest rate and exchange risks management. 2 000 customers in Europe : from CAC40 corporates to public Present throughout in 7 European sector and municipalities countries, Finance active assists its clients for the management of their debts, investments, exchange rate risks. 97% customer satisfaction rate Finance active is independent from all 20% of turnover reinvested in banking or industrial groups. This R&D independence guarantees a complete objectivity for its customers. 6000 financial decision makers active users in the world History www.financeactive.com 2010 - Finance active reaches 100 associates 2009 - Finance active counts 2000 clients – Label of Finance Innovation, the finance innovation cluster 2004 - Second label Innovative Company awarded by ANVAR (National French Innovation Agency) 2000 - Launch of Finance active in Paris by Jacques Descourtieux and Patrice Chatard PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 22
  23. 23. The Finance Innovation Cluster Initiative→ QuantValley Paris-2020 Cité des Quants, A pioneering entrepreneurial initiative Launched in June 2011 Will be attending forums in Europe, the US, the Middle East and Asia in 2011 Promotion of Quantitative Management Who is involved? Promote Quant Finance’ contribution to 20 Founding members (see below) research, risk management and value creation for investors 8 Management firms Encourage the emergence of sustainable links University centers between the academic and professional field Research laboratories Foster financial innovation through teamwork Finance Innovation Cluster Promote Paris market place’s expertise across the world Attract talents and international investors Main founders PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 Source: www.quantvalley.org 23
  24. 24. The Paris Region Economic Development Agency supports non-Frenchcompanies with four main services WE ADVISE & ASSIST COMPANIES THAT ARE LOOKING FOR STARTING, EXPANDING OR Paris Region RELOCATING BUSINESS ACTIVITIES IN THE PARIS REGION Development give you a custom-tailored analysis of the region: economic outlook & where to locate Agency help you through the entire process of setting up to opening day and beyond. Our answers to your business location needs Finding office space Getting into the market Offices, warehouses, sites, etc. Information on your business sector Costs of purchasing and renting Meetings arrangements Accompanying you on site visits Access to public partners Occasional use of our offices PR services Recruiting Setting up Recruiting local personnel Legal advice Supporting your expatriates Fiscal information Information on employment contracts Financing / subsidies & social security issues Providing contacts Environmental Management Your contact : Romain GUIZARD Help you to assess the environmental Business Operations Unit and social impact of your business Paris Region Economic Development Agency rguizard@paris-region.com Assist you in developing sustainable + 33 6 27 53 50 26 development strategies, complete with strategic + 33 1 58 18 69 29 objectives and measures Access to public and private partners http://www.paris-region.com PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 24
  25. 25. ContactsRomain GUIZARDFinancial Services DirectorEmail : rguizard@paris-region.comCell: + 33 6 27 53 50 26Direct Line: + 33 1 58 18 69 29 Website: http://www.paris-region.com

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