Guernsey: Listing Securities On The Channel Islands Stock Exchange

Last Updated: 4 May 2011
Article by Tony Link

Most Read Contributor in Guernsey, September 2016

Originally published in Longtail's A Guide to International Finance Centres, What Chinese Investors Need to Know, March 2011

Tony Link, Managing Director of Richmond Corporate Limited, takes a closer look at the regulatory requirements of one of Guernsey's most important financial institutions.

The Channel Islands Stock Exchange, LBG. (CISX) was established in March 1998 and commenced operations in October of that year. It is based in St. Peter Port, Guernsey and provides a listing facility and screen-based trading. It is within an OECD jurisdiction and in the European time zone. The CISX's mission is to be a 'leading international stock exchange serving Channel Islands' businesses.'

The CISX has traditionally concentrated on listing equities, specialist securities (these include Eurobonds, structured debt and warrants) and investment funds. In due course the CISX plans to expand its products and services to include, for example, the listing and trading of products such as insurance-related instruments.

Since its launch, the Exchange has grown rapidly and has already listed in excess of 3,500 securities. The Exchange has over 50 members who are able to sponsor the listing of securities. There are also three trading members who act as market makers. Whilst the CISX is an electronic screen-based exchange, with no active dealing floor, trading volumes have increased steadily since inception.

The board of the CISX has delegated many of its powers relating to listings and the continuing obligations of Issuers to its Market Authority. The Market Authority meets daily to approve, inter alia, new listings. Such frequency ensures a quick and efficient service and has been a primary reason for the Exchange's success.

International recognition

The management of the CISX has worked tirelessly to increase the Exchange's international profile and the Exchange has been recognised by the UK Financial Services Authority, the US Securities and Exchange Commission and the Australian Stock Exchange, among other authorities.

Conditions for listing

As with most other international exchanges, the CISX has basic requirements that a security must meet before it is considered acceptable for listing and whilst it remains listed. The listing rules set out the conditions for each category of security and such conditions are generally aimed at creating and ensuring that there is a fair market in the securities and that all investors, and potential investors, are treated equally. Subject to a few limited exceptions, in connection with transfer restrictions or compulsory redemptions, any security must be freely transferable, tradable and free from all lien. There is a minimum market capitalisation of £500,000, or currency equivalent, per security in respect of investment funds.


Prior to making an application for listing, an issuer must appoint a sponsor that will act during the application and for as long as the security remains listed. The sponsor will ensure that the security meets the conditions for listing and will assist the issuer in fulfilling its responsibilities to comply with the continuing obligations. A sponsor must be a member of the CISX. Category 1 sponsors are able to act in respect of all types of listing applications, and Category 2 sponsors may only act in respect of the listing of investment funds.

Continuing obligations

It is a prerequisite of listing that an issuer executes a listing undertaking in the prescribed form, undertaking to comply with the listing rules and, in particular, with all relevant continuing obligations.

Generally, and apart from compliance with the specific requirements of the listing rules, the issuer is obliged to keep the public, the CISX and the holders of its securities informed as soon as reasonably practicable of any information relating to the issuer (including information on any major new developments in the issuer's sphere of activity which is not public knowledge) which:

(a) is necessary to enable them to appraise the position of the issuer;

(b) is necessary to avoid the establishment of a false market in its securities; and

(c) might reasonably be expected materially to affect market activity in and the price of its securities.

The listing rules set out the precise requirements for each class of security. Broadly speaking, these cover material changes to the facts required to be disclosed at listing, as well as market news, corporate actions and directors' decisions. Certain corporate actions will also require prior approval by the Exchange. All publications and notices are published electronically to the CISX website via the Exchange's Market Data Management System. The Exchange's policy with regard to the publication of market data, including price sensitive information and other corporate actions, is that the issuer must ensure that everything that is necessary to be released to the market is done so and to the market as a whole.

The advantages of listing on the CISX

So, what sets the Channel Islands' Stock Exchange apart and makes it an exchange of choice?

1. The CISX offers a personalised, flexible and pragmatic approach to listing; a willingness to work with issuers and their sponsors and other advisers to accommodate innovative structures. Its fast-track application process, coupled with a responsive and approachable Market Authority, enables issuers to meet increasingly tight commercial deadlines. When coupled with international standards of issuer regulation and a highly competitive fee tariff, you have an excellent facility with worldwide appeal.

2. There is also high visibility for listed securities and sponsors through the Exchange's website: This service supplements the market data and price quotations distributed worldwide through the CISX's Reuters pages.

3. Finally, the location of the Exchange. The Channel Islands are stable and highly regulated International Financial Centres: outside of the Euro-zone, yet conveniently positioned for all leading European Centres.

The listing application process

The application process is straightforward and is carried out in four stages:

1. The sponsor prepares, in consultation with the issuer and its advisers, and submits the initial application documents. These will include a draft of the listing document that is 'marked up' to show where the document meets the Exchange's disclosure requirements.

2. The CISX's application team will then review the initial application documents and will usually respond with any comments within 72 hours. The sponsor, in consultation with the issuer, then responds to these comments (if any) and proceeds to finalise the application documents.

3. As soon as all documentation is finalised, the sponsor submits the final application documents to the Exchange's Market Authority.

4. Following approval by the Market Authority, the listing documents are filed and the securities are admitted to the Exchange's Official List. A formal notice is published by the CISX on its website and then dealings in the securities are able to commence.

Whilst the Exchange requires originals of all application documents, in the case of documents that are not immediately available – for instance, those signed overseas – an electronic copy will be acceptable as an interim measure, provided a suitable undertaking is given to file the original within 14 days. In certain circumstances, and particularly for secondary listings, the CISX adopts an 'equivalence' approach, which means that existing listing documents, prepared under the relevant guidelines of a jurisdiction or stock exchange recognised by the CISX, may be used. Any additional information required by the Exchange can be included in a wrap-around document.

For more information about Guernsey's finance industry please visit

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Mondaq Advice Centre (MACs)
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.