The Luxembourg Stock Exchange (LuxSE) is the world's number one exchange for the listing of international securities with a market share of 40% of international securities listed in Europe and 20% of international securities listed worldwide.
This document gives an overview of the general listing rules applicable to companies wishing to admit their debt securities to trading on the LuxSE.
Two markets available
The LuxSE operates a regulated market designated as the "Luxembourg Stock Exchange" (the Regulated Market) and a multilateral trading facility designated as "Euro MTF" (the Euro MTF Market).
Unlike issuers admitted to trading on the Euro MTF Market, issuers admitted to trading on the Regulated Market may avail of the passport procedure under the 2003/71/EC Prospectus Directive to have their securities admitted to trading on a regulated market of another EU Member State.
The Euro MTF Market is directed to issuers that are interested only in preparing basic international financial reports and that solely wish to list in Luxembourg. It is outside the scope of some EU regulations including (i) the 1606/2002/EU Regulation on application of international accounting standards (IAS), (ii) the 2003/71/EC Prospectus Directive and (iii) the 2004/109/EC Transparency Directive. Issuers having securities admitted to trading on the Euro MTF market are bound by less costly and less stringent requirements for financial reporting (eg. audited financial statements for issuers that are special purpose vehicles are not necessarily required).
The different phases of a listing can be summarised as follows:
- step 1: planning, including gathering the requested financial information
- step 2: preparation of the prospectus
- step 3: finalisation and filing of submission
- step 4: listing and admission to trading
- step 5: after the listing - ongoing disclosure requirements (eg. corporate event notice, regular reporting requirements)
The intervening parties are usually:
- the listing agent who assists the issuer with the application procedure set out in the LuxSE's Rules and Regulations and the fulfilment of its ongoing disclosure obligations (generally appointed by the arranger of the securities issue)
- the transfer agent who records changes of ownership of the listed securities
- the paying agent who administers the payment of interest, redemptions, dividends and other distributions
The table below summarizes the requirements for the listing of bonds on any one of the markets operated by the LuxSE.
|Regulated Market / Euro MTF Market|
|Competent authority to decide on the application for listing and admission to trading||LuxSE|
|Number of bonds||All bonds of the same class must be listed|
|Negotiability of the bonds||Freely transferable|
|Minimum distribution to the public (free float)||Not applicable|
|Minimum issue amount||EUR 200,000|
|Operating history||No minimum operating history required|
|Clearing and settlement||Yes (via systems recognised by the LuxSE)|
Approval of the Prospectus
No offer of securities shall be allowed to be made to the public within the territory of Luxembourg without prior publication of a prospectus. Any admission of securities to trading on the Regulated Market or on the Euro MTF Market is also subject to the publication of a prospectus.
While an application for the listing of bonds on the Regulated Market will require the prior approval by the the Luxembourg supervisory commission of the financial sector (Commision de Surveillance du Secteur Financier - CSSF), of a prospectus drawn up in accordance with the 809/2004/EC Regulation on prospectus, an application for a listing on the Euro MTF Market will require the prior approval by the LuxSE of a prospectus drawn up in accordance with the LuxSE's Rules and Regulations.
In terms of information required in the listing document, the following must be covered:
- information concerning the persons responsible for the prospectus and the auditing of accounts
- risk factors
- information concerning the admission to trading and the units for the admission of which application is being made
- general information about the issuer and its capital
- information concerning the issuer's activities
- information concerning the issuer's assets and liabilities, financial position and profits and losses (accounts, subsidiaries...)
- information concerning administration, management and supervision
Audited annual accounts for the last three years will generally be required, although there are various exemptions available. An interim financial statement covering at least the first 6 months is also required if the last annual accounts are older than 9 months.
Ongoing and periodic reporting and disclosure obligations
After a listing and admission to trading, issuers are subject to specific requirements for information disclosure.
|Regulated Market||Euro MTF Market|
|Information relating to securities and corporate events||As soon as possible, but before the events affecting the bonds or relating to corporate matters take place||As soon as possible, but before the events affecting the bonds or relating to corporate matters take place|
|All information deemed useful for the protection of bondholders and for the due and proper operation of the market||As soon as possible||As soon as possible|
|Publication of insider information (subject to certain conditions, such publication may be delayed)||Promptly||Not applicable, but obligation to publish important new facts likely to have a significant impact on the value of the security|
|Publication of annual financial reports||Within four months after year-end (IFRS or equivalent)||Within the timeframe permitted under national legislation (national GAAP or IFRS or equivalent)|
|Publication of half-yearly reports (IFRS or equivalent)||Within two months after half-year (IFRS or equivalent)||Not applicable|
Listing fees / costs
|Regulated Market||Euro MTF Market|
|Visa fees for prospectus approval||EUR 5,000 (livied by the CSSF)||EUR 2,000 (levied by the LuxSE)|
|One-off listing fees due to the LuxSE||EUR 600||EUR 600|
|Annual maintenance fees payable to the LuxSE (increases depending on the issue amount)||Starting from EUR 440 (for an issue amount equal to or lower than EUR 50,000,000)||Starting from EUR 440 (for an issue amount equal to or lower than EUR 50,000,000)|
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.