Listing Funds Luxembourg Stock Exchange

"Bourse de Luxembourg" and Euro MTF

The Luxembourg Stock Exchange offers broad listing opportunities for UCIs via its two markets, the “Bourse de Luxembourg” market, operated since 1929 and the Euro MTF, which is a Multilateral Trading Facility, in operation since 2005. The “Bourse de Luxembourg” market is a European regulated market and hence issuers on that market are subject to the requirements of the Prospectus and Transparency Directives, contrary to the Euro MTF.

There are no restrictions on the type of securities (shares, fund units and bonds) which can be listed on both markets, as long as they comply with the Rules and Regulations of the Luxembourg Stock Exchange. Issuers need to comply with the specific requirements of the market they have chosen, both prior to and after admission to trading in terms of disclosure obligations.

UCIs can thus, under certain conditions, be listed either on the “Bourse de Luxembourg” market or on the Euro MTF. At the end of 2009, 7,285 UCI shares and units where listed on the Luxembourg Stock Exchange. What’s more, between 1996 and 2009, the number of shares and units of UCIs has increased from 2,766 to 7,285. Domestic Hedge funds and Real Estate funds as well as foreign offshore funds are among the vehicles the units/shares of which are listed in Luxembourg.

Listing a UCI triggers some constraints, but mostly brings the following advantages:

  • Increases a fund’s potential investor base;
  • Makes it eligible for other investment funds;
  • Provides daily liquidity and mark-tomarket: investors can trade the fund’s shares without getting involved in time consuming subscription and redemption procedures;
  • Investors pay only usual brokerage and not redemption fees;
  • Provides publicly available information for investors;
  • Increases the image and profile of a fund and provides enhanced market visibility, which can be a valuable marketing tool;
  • Provides liquidity to enclosed-ended funds.

Further information on the listing process, in particular conditions for listing, content of the application file and continuing obligations of listed UCIs are available on the Luxembourg Stock Exchange website (www.bourse.lu).