CAC 40 Did you know?

CAC 40® stands for “cotation assistée en continu 40” (continuous stock quotation) in French.
The name was also chosen to make a link with the previous name for the Paris exchange, “Companies des Agents de Change”.

The launch of the CAC 40® launch coincided with the French stock market switching to electronic trading in 1986:

  • 31 December 1987: the value of the index was fixed at 1,000 points
  • 15 June1988: official launch of the index

The CAC 40® index was created by the Société des Bourses Françaises (SBF), the name of the French exchange at the time. The index, designed by the SBF, was originally created to support the futures market (MATIF) and the options market (MONEP)

An earlier name for the CAC 40® was to be the ION 40
ION stands for “Indice Options négociables” (traded options index)

The CAC 40® was created according to international standards
The CAC 40® was created following international standards for options indices. Its aim was to be a fixed point of reference for investors.

Why 40 securities?
40 securities is a small enough sample to facilitate hedging and arbitrage strategies on the derivatives markets, yet large enough to represent the different sectors and avoid potential dependencies (on a company, a sector, etc.).

Over 30 years, 94 companies have been part of the CAC 40®
Of the 40 companies included in the CAC 40® at its launch, 20 companies are still part of the index. Over the 30 years of its existence, 94 companies have been part of the index. 12 companies have never left the CAC 40® since its launch.

Supervision of the index is entrusted to a Conseil Scientifique (Scientific Committee)
The committee is composed of independent experts, who are not Euronext employees, and are appointed for a period of three years. The committee’s mission is to select the companies included in the CAC 40® index based on a dedicated set of rules, and to ensure its representativeness. Committee meetings take place at least four times a year, coinciding with the CAC review periods. The dates and decisions are made public right after the meeting. All matters discussed and information provided are strictly confidential. Euronext has no voting rights in the index composition.

You don’t have to be a French company to be part of the CAC 40®
Any foreign company listed on the Paris stock market can also be part of the CAC 40®.

Tech companies are widely represented in the CAC family
The CAC family, of which the CAC 40® and its indices for SMEs such as the CAC Small, has a diversified sectorial coverage, including numerous innovative tech companies.