Trading Forward: The Paris Bourse in the Nineteenth Century

Paul Lagneau-Ymonet (1) , Angelo Riva (2)

1 IRISSO - Institut de Recherche Interdisciplinaire en Sciences Sociales
2 PSE - Paris School of Economics

Contrary to what law and finance theory would predict, the Paris Bourse was highly liquid at the turn of the 20th century: the traded volumes amounted to four times the French GDP. This magnitude was mainly due to forward trading. The Bourse had developed as a forward market, despite a ban on forward transactions. The official stockbrokers played a key role in legitimizing and legalizing these operations, previously equated with gambling. The 1885 legalizing act initiated a new field of law and made possible further regulatory changes that paved the way for the heyday of the Paris Bourse.

Mots clés: Financial markets; Legal origin; Nineteenth century; Traded volumes; France

Domaines: Histoire; Economies et finances

Paul Lagneau-Ymonet, Angelo Riva. Trading Forward: The Paris Bourse in the Nineteenth Century. 2019. ⟨halshs-01984911⟩