FAQ-LuxSE

FAQ - LuxSE (Luxembourg Stock Exchange)

  • 1. Why list in Luxembourg?
    • Expertise : The Luxembourg Stock Exchange is well known for its independent and international listing expertise. Instruments that are currently listed are shares, warrants, bonds of many types, depositary receipts and investment funds.

    • Markets: The Luxembourg Stock Exchange lists 29,000 international bond issues representing 42% of total international bonds listed on EU markets. It also lists some 6,400 shares and units of investment funds in around twenty currencies, offering a wide range of investment opportunities, as well as 280 depositary receipts of issuers based in emerging markets.

    • Listing advantages : 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 Euronext’s European markets. Therefore, listed securities are not simply listed but are also tradable.

    • 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,
      - The approval phase.
    • An additional phase concerns the on-going obligations during listing.
      Quick Link: How to List.

  • 2. How to trade on the Luxembourg Stock Exchange?
    • Trading can only be carried out through a Luxembourg Stock Exchange active on the markets. The full list of members is available in the List of Members page.

      Markets
      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 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)
       
      Trading Groups
      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 rule.

      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

      By auction, when they are less liquid.

      Clearing & Settlement
      Post-trade activities are carried out in conjunction with LCH.Clearnet S.A. (as Central Counterpart) for clearing.

      There is a choice of settlement venues: Euroclear Bank and Clearstream Banking Luxembourg.

  • 3. What is the difference between the two markets of LuxSE: the Euro MTF market and the EU regulated market?
    • The Luxembourg Stock Exchange offers a choice of two markets, the main EU-regulated market (called “the BdL market” or the Bourse de Luxembourg market") and an exchange-regulated market (called “the Euro MTF”)

      Trading
      For trading activities, there are no differences between these two markets. The same rules & regulations and trading mechanism apply to both.

      Listing
      For listing activities there are important differences:

      BdL Market
        The BdL market is EU regulated and issuers are subject to the requirements of the
        Prospectus and Transparency Obligation Directives.
        Issuers on this market are subject to IFRS accounting standards (or equivalent for
        non-EU issuers).
        The BdL market is supervised by the Luxembourg supervisory authority, the CSSF,
        and has been operating since 1929.
         As it is an EU-regulated market, issued securities are eligible for the European
        passport.

      Euro MTF
        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.
         Unlike the BdL market, accounting standards other than IFRS may be used.

      There is a choice of settlement venues: Euroclear Bank and Clearstream Banking Luxembourg.

  • 4. What does your partnership with Euronext involve?

    Although it wishes to remain independant, the Luxembourg Stock Exchange has had significant cooperation with Euronext N.V. 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.

    Technology Exchange:  the cooperation has involved the migration of all Luxembourg securities to the UTP trading platform of Euronext’s European markets (May 2007).

  • 5. What market / security data is available or disseminated?

    Quick Link: Data and Document Products

    Data is available either on the website of the Luxembourg Stock Exchange or via its dissemination services and data products.

    Concerning the website, the Luxembourg Stock Exchange operates a consultation portal that gives access to up-to-date and comprehensive financial information on listed securities. Besides various RSS feeds, there are three levels of consultation:

    - Public access for potential investors
    - Premium access for professionals
    - Academic access for researchers and students.

    Currently available are:

    - Prices, indices, and market data (including pre-trade and post trade data)
    - Historical prices, dividends/interest (paying access)
    - Other data and information related to a security
    - Documents related to a security, such as prospectuses and notices
    - Data and documents on issuers
    - Information of latest listings, de-listings, suspensions, and market transfers.

    For paid subscriptions, the full range of data 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
    - Feeds for corporate actions
    - Feeds for document products (prospectuses and notices).

  • 6. Both LuxSE and its subsidiary Fundsquare provide data on investment funds, what is the difference?

    Fundsquare
    Fundsquare, 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. Fundsquare 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.fundsquare.net

    Luxembourg Stock Exchange
    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.

  • 7. How to become a member of the Luxembourg Stock Exchange?

    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 on the How to become a Member page. 

    In addition, firms that are members of 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 Euronext home market who will forward the application to the Luxembourg Stock Exchange.

    Quick Link:  Cross-member application form .

    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.

  • 8. How to obtain additional information?
    For further information please contact us by filling out our contact form
  • 9. Is it possible to visit the Luxembourg Stock Exchange?

    The Luxembourg Stock Exchange welcomes visits from students for educational purposes as well as from trade missions.

    Visits for groups of a minimum of 12 and 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 4 weeks in advance to our Communication service.