The Prospectus Regulation (2017/1129) sets out a distinct alleviated treatment for non-equity securities which are either (1) admitted to trading on a regulated market, or a specific segment thereof, and designed for qualified investors or (2) have a denomination per unit of at least EUR 100,000. It consists of:
According to MiFID II product governance requirements, issuers are obliged to identify, and communicate to distributors, a compatible target market of investors and periodically review that target market.
Issuers who are not targeting retail investors and who are in need of a listing might opt for a professional investor segment in order to demonstrate that they are clearly not targeting retail investors.
Under PRIIPs, any issuer of a “packaged product” (including structured products) shall prepare and publish a key information document (KID) before it is made available to retail clients in the EEA. However, where a product is not sold to retail clients, there is no obligation to draw up a KID.
By listing structured products on a professional-only market segment, exclusively for qualified investors, issuers can further demonstrate that these securities are not intended for retail clients and hence no KID will be required.
The first step when listing a security is to choose a market. LuxSE operates two markets: the Bourse de Luxembourg market and the Euro MTF market.
The professional segments (the “Professional Segments”) of the securities markets operated by the Luxembourg Stock Exchange (“LuxSE”) are the division of LuxSE’s relevant securities market, which is accessible only to Professional Clients or Qualified/Well-informed Investors, as defined under LuxSE Rules & Regulations (“R&R”).
Issuers specifically apply to have their financial instruments admitted to any of the Professional Segments. Access by Members to any of the trading group(s) under the relevant Professional Segment is on demand only. LuxSE does not verify and is not responsible for verifying whether clients/investors are qualified to operate in the abovementioned Professional Segments. Members shall, under their full responsibility and control, verify and ensure that orders involving instruments traded on any of the Professional Segments do not come from clients other than Professional Clients or Qualified/Well-informed Investors. Further information on the Professional Segments is available on LuxSE Trading Manual and in the R&R.
The information, data and prices (if any) displayed on this page (collectively the “Information”) are made available for general information purposes. LuxSE does not give any representation or warranty and disclaims any liability or responsibility of any kind in connection with the accuracy, correctness, timeliness, fitness for a particular purpose, reliability or completeness of the Information. LuxSE does not accept any liability or responsibility of any kind for any loss or damages arising directly or indirectly from the use of or any action refrained or taken on any Information. The Information does not constitute and is not construed as any advice, solicitation, offer, endorsement, commitment or recommendation of any kind on behalf of LuxSE to invest in any financial instrument. Neither does the publication of the Information by LuxSE represent or constitute any warranty or representation from LuxSE in connection with the good standing, profitability, suitability or reliability of any financial instrument and/ or of any issuer. Information should and shall not be regarded as legal accounting, investment, financial or other professional advice nor is it intended for such use.