The dematerialization of transferable securities in France was initiated by Article 94-II of the Finance Act of December 30, 1981. This reform, completed by the Decree of May 2, 1983, abolished paper certificates in favor of exclusive book-entry registration, entering into force on November 3-5, 1984. This transformation was recommended by the Perouse Report of September 1980 to modernize the financial market and strengthen tax controls.

Settlement-delivery occurs no later than the second business day following the trade, in accordance with the standard T+2 timeline imposed by the CSDR regulation. This timeline allows the parties to confirm their instructions and the systems to carry out the necessary verifications before definitive settlement. The ESES France system operates under a delivery-versus-payment model guaranteeing the simultaneity of securities and funds transfers.

Article L.211-15 of the Code monétaire et financier provides that financial securities are transferred by book-entry transfer or by registration in a shared electronic recording device. This mechanism, which came into force with the 1984 reform, ensures the security and efficiency of transactions by replicating the functioning of scriptural money.

Dematerialization transformed transferable securities into fungible intangible movable assets. Article L.211-2 of the Code monétaire et financier defines transferable securities as financial instruments conferring identical rights per category. This fungibility means that no owner has a right to a particular security, but rather to a determined quantity of securities from the same issue.

The transfer of ownership results from the registration of securities in the buyer's securities account (Article L.211-17). This moment corresponds to the date of actual settlement at the central securities depository, which occurs no later than two business days after the trade (T+2 settlement cycle). Thus, the sell order alone is not sufficient to transfer ownership.

The 1984 reform abolished paper certificates in favor of exclusive book-entry registration. Article L.211-3 of the Code monétaire et financier now establishes the principle that financial securities issued in French territory are registered in a securities account, constituting the exclusive mode of proof of ownership. Thus, no physical certificates are used any longer.

The transferable securities circulation system comprises several actors and mechanisms. Laws and decrees (such as the 1981 Finance Act) are legislative texts. Authorized intermediaries (such as Euroclear France) are central securities depositories. Securities accounts are registration instruments. Transfers are financial operations.

The dematerialization of transferable securities in France entered into force on November 3-5, 1984, following the reform initiated by Article 94-II of the Finance Act of December 30, 1981, and completed by the Decree of May 2, 1983. This reform led to the destruction of approximately 2,500 tonnes of physical certificates.