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

Paris Region, A Unique, Global and Innovative Financial Place

New York, February 2011

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

Paris Region, A Unique Location

4PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 44

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

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Paris Region shelters 38 headquarters of the 500 most powerful companies in the world.

Headquarters – Fortune 500 world ranking 2010

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The 2nd Largest Concentration of Fortune 500 in the World

Source : Fortune Magazine, Global 500 Companies, August 2010


6

Europe’s leading science & technology hub

Europe’s no. 1 region in terms of R&D expenditures (8% of

European R&D expenditure

Europe’s no. 1 region for scientific publications,

accounting for 5% of European publications

7% of EU’s combined private and public research

workforce

Attracting researchers from all over the world and

over 80 nationalities

33 of the 50 French Nobel Prizes

A world reference in mathematics

Research sectors diversity: automotive industry, ICT,

pharmaceuticals, aerospace, agribusiness …

8 R&D clusters

A Unique Innovation Hot Spot


to open a worldwide level R&D center in

Paris in 2011

”Looking at the quality of graduates and at the quality of

technical talent, the business talent, the public policy

talents […]it’s clearly the right thing to do”[…] We are

inviting start-ups to come to Google in Paris to build their

businesses […] We do this relatively rarely and so, from my

perspective, this is a historic moment.”

Eric Schmidt, CEO of Google

Source: speach at Sciences-Po, 2010 Sept 9.

Save the Date! 1st Fortnight-Dec 2011

PARIS REGION INNOVATION TOUR - 7th Edition

A unique event in Europe, PRIT 2010 brought together 850

people from 28 nationalities who are prime movers in

innovation around conferences, workshops and exchange of

best practices.

90 international clusters came to meet with the 8 R&D Paris

clusters to explore new ways of working together

internationally.

Source: ww.prit2010.eu

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A Simplified and Harmonized Regulation → Current EU Finance Supervisory New Organization (2011 – Q1)

Euro Banking Association

(EBA)

European Insurance and

Occupational Pensions Authority

(EIOPA)

European Securities and

Markets Authority

(ESMA)

National Banking

Supervisory Authorities

France: “A.C.P.”

(formerly called “C.E.C.E.I.”)

National Insurance


France: “A.C.P.”

(formerly called “A.C.A.M.”)

National Markets


France: “A.M.F.” (Financial

Markets Authority)

European Systemic Risk Council (ESRC)ECB Board + Presidents of EBA/EIOPA/ESMA + EU Commission

Exchange of information Advice / warnings

Main goals:

• Simplification

• Harmonization

• Centralization

2 mainstays:

•New authorities

with binding powers

• Effective and

coordinate regulation

on systemic risk

European System of Financial Supervisors (ESFS)

Launching of 3 pan-European agencies (Semester 1- 2011)

PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 Source: Revue Banque mag, Dec 2010

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The European Securities and Markets Authority (ESMA)→ Focus on a new Paris-based Authority with binding powers

ESRC provides

• analysis

• warnings

• recommendations

ESMA provides:

• information on companies

and markets

• identify risks

• diminish possible threats

Cross-representation

Clear mandates

Cross-representation

Clear mandates

What are the new competences and powers of ESMA?

• Draft technical standards that are legally binding across the EU

• Launch a fast track procedure to ensure consistent application of EU Law

• Resolve disagreements between national authorities

• Responsibilities for consumer protection

• A new supervisory role for credit rating agencies (including FSA London)

• Ability to enter into arrangements with supervisory authorities, international

organizations and the administrations of 3rd countries.

• Emergency powers

A key contributor to the financial stability of the EU

Source: www.esma.europa.eu

What is ESMA’s role?

• Safeguard the stability of the EU’s

financial market

• Develop a single rule book in Europe

• Strengthen international supervisory coop°

• Ensure the consistent treatment of investors

across the EU

• Promote equal conditions of competition for

financial services providers

Premised in Paris

Launched in 2011

Full-time Chair on a

5 years term

Independent body

24 millions€ budget

70 staff


9PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011

Since 2008, +50 US companies have benefited from our services

An Attractive Location For US-based Companies

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

Source: « non-exhaustive ARD’ results », 2008-2010

1010PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 Source: www.heenanblaikie.com

Case Study: Heenan Blaikie new Paris office→ Legal Services Going Global

The Paris office specializes in: Financing & restructurings

business Law – commercial Law

Private Equity & Capital Venture

Merger & Acquisitions / Joint-ventures

Litigation & international arbitration

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.

Heenan Blaikie - Key Figures

16 new Lawyers in the Paris office

Paris and Singapore are the focus points of

HB international growth strategy

1 year of informal collaboration prior to

the grand opening

550 Lawyers worldwide

Why is Paris the centerpiece of your International growth strategy?

« Our business activities in Europe and Africa had been growing at such a

tremendous pace that we needed a larger presence in Paris. This expansion

represents an important step of our international growth strategy. It will enable

our clients to benefit from the services of 16 experienced lawyers who will assist

them in their operations and development in Europe and Africa. »

« 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 lawyers in our Paris office have been chosen because they share our

culture, which is based on service excellence. »

Roy L. Heenan, Founding Partner, Chairman of Heenan Blaikie

Paris Region, A Global Financial Place

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A Leading Asset Management Industry

€ 2,600 billion assets under management (Dec 2009)

Number 1 in Europe for fund management: 23% of assets managed in

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

The French Big 4 are backed by the largest banks and

insurance groups. Two of them have more than

doubled in size over the past 5 years

They chose the Paris Region


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A Resilient French Banking Industry

French Global Universal Banking Groups

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

- Net Banking Income 2010, Q1-Q3: US$ 10.8 billion

- Number 1 in the eurozone by deposits.

- 4 domestic markets: France, Italy, Belgium, Luxemburg

Société Générale

- Net Banking Income 2009 : US$ 21,7 billion

- 32 million customers

They Choose the Paris Region

Save the Date !

March 22nd 2011, Paris : « The Future of Banking », the

Economist Conference http://www.economistconferences.com/banking

July 5th – 6th 2011, Paris : International Financial Forum,

Paris, Paris EUROPLACE http://www.paris-europlace.net/events.htm

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

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


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A Major European Online Trading Market

Cortal Consors SA is a European broker in personal investing

and online trading. Cortal Consors is a subsidiary of BNP

Paribas. Website : https://www.cortalconsors.fr

Boursorama is a European online financial services company.

Boursorama is a subsidiary of Societe Generale.

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


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


Being listed on the NYSE Euronext in Europe, a custom-tailored offer

to the US companies

NYSE Euronext (NYX), the holding company created by the

combination of NYSE Group, Inc. and Euronext N.V., was

launched on April 4, 2007.

With more than 8,000 listed issues, NYSE Euronext’s equities

markets – the New York Stock Exchange, NYSE Euronext, NYSE

Amex, NYSE Alternext and NYSE Arca – represent nearly 40%

of the world’s equities trading, the most liquidity of any global

exchange group.

NYSE Euronext also operates NYSE Liffe, the leading

European derivatives business and the world’s 2nd largest by

value of trading. NYSE Euronext is in the S&P 500 index and is

the only exchange operator in the S&P 100 index and Fortune

500. NYSE Euronext is in the S&P 500 index and is the only

Exchange Operator in the S&P 100 index and Fortune 500

Since 2008, a cost-effective Fast Path process enables US-

listed companies to complete a cross-listing on NYSE

Euronext in Paris.

Philip Morris International, March 2008

Anheuser-Busch, April 2008

Companhia Vale do Rio Doce, July 2008

Cliffs Natural Resources Inc., April 2009

Weatherford International Ltd, Oct. 2009

PartnerRE, Dec. 2009

AgFeed Industries Inc., March 2010

Knight Capital, May 2010

Watsco, October 2010

Toreador Resources, December 2010

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, An Innovative Financial Place

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The Finance Innovation Cluster Initiative

Innovation in Finance

1,000 innovative financial businesses (less than 5 years old)

identified in the Paris Region covering all financial sectors

100 industrial and research projects approved by a selection

committee of experts

5 main areas of innovation: SME financing tools, Asset and Risk

Evaluation, IT applied to Finance, Financial Analysis & Information,

Finance & Sustainable Development, Monetics

Sources of public funds: OSEO, FUI, ANR, R&D tax credits

→ US companies that can benefit from these highy competitive

incentives

Finance Innovation Cluster - Main drivers

Create synergies and the necessary conditions to foster innovative financial projects

Support the development and financing of SME’s and innovation

Develop an ecosystem by organizing exchanges between large firms, SME’s and academics

Reinforce the globally-renowned French research and training hub in finance and economics

Contribute to the emergence of projects in social and environmental finance (carbon trading, climate indices, micro-finance)

Promote international business opportunities

Founders

The Finance Innovation cluster supports industrial and research projects related to the financial services industry


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The Finance Innovation Cluster initiative → supports innovative IT/Finance projects

Sector Project name Company name Innovative project description

IT / Finance

C2BOXBox & Automation

Solutions

SWIFT-based solutions allowing international groups a global and day-to-day visibility

of cash-flows

QUANTFPGA QuantHouseReal-time treatment of market data through an FPGA chip system integrated into

Quanthouse’s trading platform

FRIENDSCLEAR

TPEFriendsClear Peer-to-peer loan financing platform for entrepreneurs (micro credit)

Loov Laser Loyalty Specific manetary system for virtual social networks (Collaborative - FUI Project)

VISION SOCIAL AltoNew supplies software products and innovative services for preventative management

of working conditions

PhoenixPhoenix Financial

Services Global solution for managing electronic trading orders.

AMAFI BBSP Massive analysis of financial series

Source : Finance Innovation, January 2011 http://www.finance-innovation.org/projets_label_en.htm


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The Finance Innovation Cluster Initiative → supports Asset & Risk Evaluation Projects

Sector Project name Company name Description

Asset & Risk

evaluation

FX'ENT Finance ActiveInnovative solutions facilitating financial management, debt surveillance and

decision-making support

STAR Cid Consulting Compliance monitoring software for financial institutions

MULTIRATINGS N/ANatural classification of investment funds

Paris-MHM OTC ConseilDevelopment of solutions for managing long term market risks

CRIS Zéliade SystemsIndependent valuation and risk analysis platform for credit derivatives

R=MC2Azurris Risk

Advantage

Solution dedicated to help corporates reduce the cost and raise the efficiency

of their hedging policy against financial risks (forex, commodities, interest rates)

C2R RiskalisRisk control and valuation methodology for banks

CREDINEXT Pricing PartnersIndependent valuation platform for credit derivatives and illiquid structured

bonds

SCORING TAIGATaïga Collateral

Management

Development of the first notation and scoring platform of SME’s Working

Capital



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The Finance Innovation Cluster Initiative → supports Financial Analysis, SME Financing tools and Sustainable Finance

Sector Project name Company name Description

Financial

Analysis &

information

projects

EFIREP Hégoa-Solutions European financial and extra-financial reporting platform or listed companies, in

XBRL

ALPHAVALUE N/A Independent Equity Research provider covering the 500 largest European stocks

OPALE RESEARCH Opale FinanceDynamic tool for the financial analysis and investment decision, dedicated to

small and medium listed companies (intranet and extranet)

SME Financing

tools

VENTURE LoanGeneris Capital

Partners

Bond financing technique for innovative and technological startups

FINANCEMENT-

ENTREPRISE.COM

Financement-

entreprise

Scoring platform within a portal dedicated to SME credit brokerage

Finance &

Sustainable

Development

FLEXINERGIE Evolution énergie

Software risk management energy and carbon for companies.



Finance &

Sustainable

Development

OPENSPACERisk Manager

Sans Frontières

Risk control methodology dedicated to Micro Finance Institutions

2222

�Finance active is an innovative company that combines financial expertise and the technologies in order to provide a high quality service to financial decision makers.

�Services SaaS dedicated to interest rate and exchange risks management.

�Present throughout in 7 European countries, Finance active assists its clients for the management of their debts, investments, exchange rate risks.

�Finance active is independent from all banking or industrial groups. This independence guarantees a complete objectivity for its customers.

The Finance Innovation Initiative→ Case study : Finance Active

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

�Created in 2000

�100 employees :

Financial R&D, innovative technologies, customer financial assistance

�2 000 customers in Europe : from CAC40 corporates to public sector and municipalities

�97% customer satisfaction rate

�20% of turnover reinvested in R&D

�6000 financial decision makers active users in the world


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The Finance Innovation Cluster Initiative → QuantValley Paris-2020 Cité des Quants, A pioneering entrepreneurial initiative

Promotion of Quantitative Management

� Promote Quant Finance’ contribution to research, risk management and value creation for investors

� Encourage the emergence of sustainable links between the academic and professional field

� Foster financial innovation through teamwork

� Promote Paris market place’s expertise across the world

� Attract talents and international investors

Who is involved?

� 20 Founding members (see below)

� 8 Management firms

� University centers

� Research laboratories

� Finance Innovation Cluster

Main founders

PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 Source: www.quantvalley.org

Launched in June 2011

Will be attending forums in Europe, the US, the Middle East and Asia in 2011

24PARIS REGION ECONOMIC DEVELOPMENT AGENCY - JANUARY 2011 24

The Paris Region Economic Development Agency supports non-French

companies with four main services

WE ADVISE & ASSIST COMPANIES THAT ARE LOOKING FOR STARTING, EXPANDING OR

RELOCATING BUSINESS ACTIVITIES IN THE PARIS REGION

�� give you a custom-tailored analysis of the region: economic outlook & where to locate

�� help you through the entire process of setting up to opening day and beyond.

Paris Region

Development

Agency

Our answers to your business location needs

�� Finding office space

�Offices, warehouses, sites, etc.

�Costs of purchasing and renting

�Accompanying you on site visits

�Occasional use of our offices

�� Getting into the market

� Information on your business sector

�Meetings arrangements

�Access to public partners

�PR services

�� Recruiting

�Recruiting local personnel

�Supporting your expatriates

� Information on employment contracts

& social security issues

�� Setting up

�Legal advice

�Fiscal information

�Financing / subsidies

�Providing contacts

� Environmental Management

� Help you to assess the environmental

and social impact of your business

�Assist you in developing sustainable

development strategies, complete with strategic

objectives and measures

�Access to public and private partners

Your contact : Romain GUIZARDBusiness Operations Unit

Paris Region Economic Development Agency

[email protected]

+ 33 6 27 53 50 26

+ 33 1 58 18 69 29

http://www.paris-region.com

Contacts

Romain GUIZARD

Financial Services Director

Email : [email protected]

Cell: + 33 6 27 53 50 26

Direct Line: + 33 1 58 18 69 29

Website: http://www.paris-region.com

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

Economy & Finance