FAQ LGX funds

FAQ - Funds on the Luxembourg Green Exchange (LGX)

The Luxembourg Green Exchange (LGX) is a platform dedicated to sustainable financial instruments, which include bonds, funds and other financial instruments.

These Frequently Asked Questions (FAQ) address specific issues around the registration of funds. A separate FAQ document dedicated to bonds is also available on our website here.
  • LGX is a platform launched by the Luxembourg Stock Exchange (LuxSE) in September 2016 and is entirely dedicated to green, social, sustainability and ESG financial instruments.

    As to the funds, the platform offers an environment where ESG, green and social fund promoters can display their securities and publish information relating to their investment policy, investment strategy, exclusion policy or any other document promoting fund transparency.

    At the same time, the platform caters to responsible investors by providing full and unrestricted access to a list of securities that are dedicated to sustainable finance, together with their respective security-specific information.

  • No. LGX is not a separate market. It is a dedicated platform for securities that are listed on one of LuxSE’s markets (Bourse de Luxembourg, Euro MTF) or registered on the Securities Official List (SOL). In other words, LGX complements LuxSE’s existing markets by focusing on ESG, green, social or sustainable securities.

  • a. Advantages for investors

    LGX requirements are aligned to the Sustainable Finance Disclosure Regulation (SFDR) or equivalent, which explicitly aims to bring transparency to end-investors.
     

    b. Advantages for asset managers

    Funds displayed on LGX will benefit from a dedicated security card.​
    Displaying a fund on LGX is a unique opportunity for asset managers to be part of the world's leading platform for sustainable securities. 
    • LGX has a very active and impactful communication strategy – social networks (LinkedIn, Twitter), press publications (local and international, e.g. Funds Europe, Responsible Investor), references on websites of other sustainable finance actors and data vendor platforms​
    • LGX receives high visibility through the vast number of international events which LuxSE participates in, or through hosting local sustainable finance events such as investor days and LuxSE's Stock Exchange Day.

    Displaying a fund on LGX’s fund window also includes the asset manager in the wider LGX ecosystem. LGX brings together not only the buy and sell side of financial transactions, but it is also part of a larger network of actors engaged in sustainable finance such as the European Commission, UNEP Financial Inquiry, UN Sustainable Stock Exchanges Initiative, Climate Bonds Initiative, governments, etc.​

  • Funds displayed on LGX must be ESG (Article 8) or Impact (Article 9) as per SFDR. ​

    ​The above classification is done regardless of the type of fund i.e. mutual funds and ETF, FoFs and Master/Feeders.​
    Please refer to SFDR here.

    ​Further guidance by the European Commission is provided here.

    ​For any additional questions you may have please contact the LGX team.

  • The LuxSE Securities Official List, or SOL, offers asset managers the possibility to register their securities on our official list, without admission to trading. LuxSE SOL is designed for asset managers looking for visibility and for whom admission to trading is not a prerequisite. This could be of interest for various issuers and securities. Read more about SOL here.

    A dedicated Rulebook of the Luxembourg Stock Exchange and the Grand-Ducal Regulation of 13 July 2007, which implements the Directive 2001/34 /CE establishing the existence of the official list, govern the LuxSE SOL.

  • Once a fund is displayed on LGX, it is expected to comply with requirements of ESG (Article 8) and Impact (Article 9) products in line with SFDR.​

    LuxSE reserves the right to withdraw a security from LGX if it does not abide by LGX requirements.​