PARIS BROKERS GIVE UP THEIR QUILL PENS.

The article focuses on French stock exchanges. French brokers have had the monopoly on securities trading since 1807, a monopoly sustained by law. The office of agent de change is conferred by the government and can be passed down through the family or sold. Until 1967 it was forbidden to solicit clients or to advertise. Times have changed. The agents de change now have to cope with a ballooning bond market, the source of which was the socialist government. The problem facing the government in 1982 was how to finance a large state deficit said Michel Develle, chief economist at Banque Paribas. One measure taken was to encourage investment in long-dated government bonds. Another stimulus to the market was the effect of low economic growth which depressed corporate lending requirements and rendered obsolete the old system of encadrement du credit. Since 1981 bond trading has increased more than sixfold. Foreign demand for equity doubled between 1984 and 1985. while domestic demand from individuals. financial intermediaries and corporations has also increased.