History of Brussels stock exchanges

History of Brussels stock exchanges
The history of the Brussels Stock Exchange begins in the early days of the nineteenth century.
The first exchange – the Bourse de Fonds Publics de Bruxelles – was established by decree on 13 Messidor An IX (2 July 1801) under the government of Napoleon in Belgium. The former Saint Augustine Convent on the Rue Fossé-aux-Loups was chosen for the original premises. Following the sale of the convent buildings, the stock exchange was permitted to do business in the national mint, the Hôtel des Monnaies. When the mint re-opened in 1820, the brokers rented a house on the Rue Guillaume, now called the Rue Léopold.
By 1858, the bourse was flourishing as a result of the economic and industrial boom, and had outgrown the Rue Guillaume premises. So the brokers and traders urged the municipality of Brussels to build a new stock exchange. The project was given top priority. Among the architects bidding for the commission was Léon Suys who, with support from various petitions, won over the city council.
The new exchange was built on the site of the 13th-century Récollets Convent. Construction started in October 1869, and the inauguration ceremony was attended by King Léopold II and Queen Marie-Henriette. The building was finally completed in 1874. The ruins of the Récollets Convent have been preserved in an underground museum on the Rue de la Bourse.
The stock markets
1801 to 1867: the French system
Belgium was under French rule from 1795 to 1814. It became a fully independent country in 1831, but retained much of the French system. Throughout this period, agents de change, or brokers, were ministerial officials. They had a monopoly on trading in government securities (a system that remained in force in France until 1987) but were not permitted to deal for own account.
1867 to 1935: the free-market system
Under the free-market philosophy of the time, the stockbroking profession and stock exchanges were fully deregulated (although the municipal authorities were responsible for maintaining law and order during trading sessions!)
Belgian stock market legislation
1935 to 2000
Royal decree no. 84 (30 January 1935)
To remedy the lack of regulation during the free-market period – but particularly in reaction to the Great Depression of 1929-1935 – an attempt was made to regulate brokerages by royal decree. This was part of a broader plan to stimulate the economy and the capital markets.
Royal decree no. 61 (10 November 1967)
This royal decree, passed under special powers, was instigated by the De Voghel Commission, a government body set up to examine ways to finance economic expansion.
Act of 4 December 1990
Known as the Financial Transactions and Markets Act, this piece of legislation was initiated by the finance minister, Philippe Maystadt. It was chiefly intended to modernise Belgium's stock markets and make them more competitive internationally.
Act of 6 April 1995
This Act transposed the EU Investment Services Directive – whereby approved European financial intermediaries and bankers can operate Europe-wide – into Belgian law. An independent management committee was set up to administer and supervise the securities markets.
Royal decree of 11 April 1999
This decree officially established Brussels Exchanges (BXS), an integrated market operator comprising Belfox (Belgian Futures and Options Exchange), Bourse de Bruxelles (Brussels stock exchange) and CIK (the central securities depository).
Royal decree of 17 September 2000
This decree authorised Brussels Exchanges to merge with ParisBourse and Amsterdam Exchanges to form Euronext, the first pan-European exchange.
Established on 22 September 2000, Euronext is the first fully integrated cross-border market in equities and derivatives. From the regulatory standpoint, companies traded on Euronext are listed on their home markets, but their shares are now traded on a single platform spanning all participating countries. Listing requirements have been harmonised, and efforts are now underway to harmonise derivatives trading platforms, clearing systems and settlement systems.