| | 1. | Why list in Luxembourg? |
| | 2. | How to trade on the Luxembourg Stock Exchange? |
| | 3. | What is the difference between the two markets of the Luxembourg Stock Exchange: the Euro MTF market and the EU regulated market? |
| | 4. | What does your partnership with NYSE Euronext involve? What is Luxnext? |
| | 5. | What market / security data is available or disseminated? |
| | 6. | Both the Luxembourg Stock Exchange and its subsidiary Finesti provide data on investment funds, what is the difference? |
| | 7. | How to become a member of the Luxembourg Stock Exchange? |
| | 8. | How to obtain additional information? |
| | 9. | How to obtain a login for the site? |
| | 10. | Is it possible to visit the Luxembourg Stock Exchange? |
| | 1. | Why list in Luxembourg?
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| | | The Luxembourg Stock Exchange is well known for its independent and international listing expertise and, unlike most other stock exchanges, listing activities, and in particular international listings, are its core business. At the end of June 2008, more than 48,000 securities were listed. The Luxembourg Stock Exchange offers listing services for around 4,000 issuers of some 100 countries and 13 supranational organisations. Instruments that are currently listed are shares, warrants, bonds of many types, depositary receipts and investment funds. A differentiating factor in its service offer is its listing process. Prior to listing, the Luxembourg Stock Exchange checks that all the prerequisites for a secondary market to develop are fulfilled. Listed securities are registered with an ICSD and have access to a trading platform: the UTP platform of NYSE Euronext’s European markets. Therefore, listed securities are not simply listed but are also tradable. In addition, The Luxembourg Stock Exchange offers a choice of two markets, the main EU-regulated market (the BdL market) and an exchange-regulated market (the Euro MTF). Listing in Luxembourg is both relatively straightforward and flexible. There are three main phases in the process: the pre-application and file submission phase, the application phase and the approval phase. An additional phase concerns the on-going obligations during listing. Complete details of listing procedures can be found in ' Services > Listing a security" |
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| | 2. | How to trade on the Luxembourg Stock Exchange?
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| | | Trading can only be carried out through a Luxembourg Stock Exchange “Trading Member Firm”. A list of members is available in ' Services > Membership > List of members' Fully automated and decentralized, the markets of the Luxembourg Stock Exchange are open from 9-00 a.m. to 5-35 p.m. Trades are generated on the UTP trading platform hosted by NYSE Euronext’s European cash markets. The same rules & regulations and trading mechanism apply to both markets operated by the Luxembourg Stock Exchange. (the BdL market and the Euro MTF) Securities are divided into trading groups based on different trading procedures. The composition of these groups, determined on the basis of factors such as the particular characteristics and liquidity of the securities. Securities within the same group are subject to the same timetable and price variation rules. Securities are traded on the Luxembourg Stock Exchange either continuously for securities that are liquid enough or for securities with a market maker willing to accept certain obligations or, when they are less liquid, by auction. Clearing and settlement is carried out via LCH.Clearnet as Central Counterparty and a choice of settlement venues: Euroclear Bank and Clearstream Banking Luxembourg |
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| | 3.
| The difference between the two markets of the Luxembourg Stock Exchange:
the Euro MTF market and the EU regulated market
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The Luxembourg Stock Exchange offers a choice of two markets, the main EU-regulated market (called “the BdL market”) and an exchange-regulated market (called “the Euro MTF”).
For trading activities, there are no differences between these two markets. The same rules & regulations and trading mechanism apply to both.
For listing activities there are important differences.
The BdL market is EU regulated and issuers are subject to the requirements of the Prospectus and Transparency Obligation Directives. In addition, issuers are subject to IFRS accounting standards (or equivalent for non-EU issuers). As it is an EU-regulated market, issued securities are eligible for the European passport. The BdL market is supervised by the Luxembourg supervisory authority, the CSSF, and has been operating since 1929.
The Euro MTF is an exchange-regulated market and is a Multilateral Trading Facility in accordance with the MiFID Directive. It is outside the scope of the Prospectus and Transparency Obligation Directives. The Euro MTF is for issuers who are not interested in a European passport or who require more flexibility in relation to preparation of financial information. Unlike the BdL market, accounting standards other than IFRS may be used. The Euro MTF is regulated by the Luxembourg Stock Exchange and has been operating since July 2005.
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| | 4. | What does your partnership with NYSE Euronext involve? What is Luxnext?
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The Luxembourg Stock Exchange has had significant cooperation with Euronext N.V., now a subsidiary of NYSE Euronext, for more than 9 years, including a cross-membership agreement. Under the terms of this agreement Luxembourg Stock Exchange members may access the Euronext trading system and Euronext members qualifying for the European passport may access the markets of the Luxembourg Stock Exchange.
In addition, the cooperation has involved:
- The migration of all Luxembourg securities to the UTP trading platform of NYSE Euronext’s European markets (May 2007).
- The adoption by Euronext of the SAGE application for listing of corporate bond issues, SAGE having been developed by the Luxembourg Stock Exchange (February 2008).
These changes led to the launch of the Luxnext standard for corporate bonds. Luxnext is a European Economic Interest Grouping between the Luxembourg Stock Exchange and Euronext N.V. It aims to offer a European standard for the listing and trading of corporate bonds. Further information can obtained at www.luxnext.com.
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| | 5.
| What market / security data is available or disseminated?
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Data is available either on the website of the Luxembourg Stock Exchange or via its dissemination services and data products.
Concerning the website (www.bourse.lu), the Luxembourg Stock Exchange operates a consultation portal that gives access to up-to-date and comprehensive financial information on listed securities. There are three levels of consultation with access to different amounts of data: free public access; free access with registration; paid subscription. There is also an RSS feed.
Currently available are:
- prices, indices, and market data (including pre-trade and post trade data)
- historical prices, dividends/interest (paid)
- other data and information related to a security
- documents related to a security, such as prospectuses and notices
- data and documents on issuers (paid and free)
- information of latest listings, de-listings, suspensions, and market transfers
For paid subscriptions, the full range of data, documents and information can be accessed from the website; however, for entities who require multiple downloads from the website it is preferable to use the data dissemination and data products services.
The Luxembourg Stock Exchange offers specific data products designed for end-users of the data and for data vendors. Products currently available are:
- feeds on prices, which may be real-time, delayed or end-of-day
- corporate actions feeds
- document products (prospectuses and notices)
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| | 6.
| Both the Luxembourg Stock Exchange and its subsidiary Finesti provide data on investment funds, what is the difference?
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| | | Finesti, a wholly-owned subsidiary of the Luxembourg Stock Exchange, is specialized in the collection, management and dissemination of investment fund data, with an emphasis on Luxembourg-domiciled funds but also, more recently, European funds. Finesti covers all manners of data, documents and regulatory reporting for funds and is the central hub for such information. Further information can be obtained at www.finesti.com Some of these funds may be listed on the Luxembourg Stock Exchange. In this case, the Luxembourg Stock Exchange makes available data under its obligations related to listings. Naturally, there is some overlap between the data published by both entities. However, it is important to note that publication of data is not linked between entities and separate applications should be made for both. |
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| | 7.
| How to become a member of the Luxembourg Stock Exchange?
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| | | Membership to the Luxembourg Stock Exchange is open to credit institutions and investment firms. Private persons cannot become members. The Luxembourg Stock Exchange coordinates the membership application procedure and application forms are available in ' Services > Membership" In addition, firms that are members of members NYSE Euronext’s European cash markets qualifying for the European passport may access the markets of the Luxembourg Stock Exchange in the capacity of a “Cross-Member”. In this case, such firms should apply to their NYSE Euronext home market who will forward the application to the Luxembourg Stock Exchange. Cross-Member application forms. Becoming a member is quite straightforward. The process is composed of three phases: - The application phase - The access to markets phase - The post-trade phase |
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| | 8.
| How to obtain additional information?
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The Customer Service Center is available for answering your queries.
Customer Service Center
E-mail: info@bourse.lu
Tel: + 352 47 79 36 - 330
Fax: + 352 2 26 51 - 69
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| | 9.
| How to obtain a login for the site ?
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By filling in a registration and subscription form from the services described in the products catalog. |
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| | 10.
| Is it possible to visit the Luxembourg Stock Exchange?
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| | | The Luxembourg Stock Exchange welcomes visits from students for educational purposes as well as from trade missions. Visits for groups of a maximum of 25 can be arranged from Tuesday to Friday between 9 a.m. and 5 p.m. Prospective visitors should send a visit request at least a few weeks in advance to Mr Pierre Malanda ( pml@bourse.lu). |
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