Luxembourg Stock Exchange

The Luxembourg Stock Exchange, LuxSE (French: Bourse de Luxembourg) is based in Luxembourg City at 35A boulevard Joseph II.

Luxembourg Stock Exchange
Bourse de Luxembourg
Bourse vu Lëtzebuerg
Börse Luxemburg
TypeStock Exchange
LocationLuxembourg City, Luxembourg
Coordinates49°36′46.0″N 06°07′14.5″E
Founded5 April 1928
OwnerSociété de la Bourse de Luxembourg S.A.
Key peopleFrank Wagener (Chairman)
Robert Scharfe (CEO)
No. of listings36.615 (December 2016)
IndicesLuxX Index, Lux General Price, Lux GDRs India, Lux GDRs Taiwan, Lux RI Fund Index
Websitebourse.lu

The Chairman of the Board is Frank Wagener and the President of the Executive Committee and Chief Executive Officer is Robert Scharfe.

The Exchange has pre-opening sessions from 07:15am to 09:00am and normal trading sessions from 09:00am to 05:35pm from Monday to Friday included, except for holidays declared by the Exchange in advance.[1]

History

A law establishing a stock exchange in Luxembourg was passed on 30 December 1927.[3] The company was incorporated as Société Anonyme de la Bourse de Luxembourg on 5 April 1928[3], with an initial issue of 7,000 shares, each valued at 1000 francs.[2][10]

In March 2014, LuxSE moved to its new headquarters – the Aurora building– erected in line with the green construction concept.

In 2015, the exchange celebrated the 10th anniversary of its Euro MTF Market.

Agreements with other exchanges

In November 2000, LuxSE signed a cooperation agreement with Euronext. As part of the agreement, trades in Luxembourg are generated through Euronext's Universal Trading Platform (UTP) allowing existing Euronext members to activate a cross-membership status on LuxSE.

Exchange members

As of August 2016, the LuxSE has 53 members of which 28 have a trading status. There are nine approved market makers.

Bonds

The Luxembourg Stock Exchange specialises primarily in the listing of international bonds, in which it ranks first in Europe with 25,831 debt securities listed as of August 2016.[2] In 1963, with the issue of Italian Autostrade bonds, it became the first exchange globally to list a Eurobond, an international bond denominated in a currency not native to the country where it was issued.[3][2] To this day, Luxembourg has maintained a dominant position in European bond issues with approximately 40% of all cross-border securities in Europe listed in Luxembourg.[4][3]

Over 70 countries list at least some of their sovereign debt in Luxembourg. Luxembourg is also a preferred debt market for supranational entities such as the European Bank for Reconstruction and Development, European Commission, European Investment Bank and World Bank.[2]

In 2007, the LuxSE was the first stock exchange in the world to list a bond labelled green, i.e. a "climate awareness bond" [5][4] issued by the European Investment Bank. In 2015, the Exchange listed green bonds worth $11.7 billion, followed by a $9.6 billion-worth issuance in the first seven months of 2016.

Luxembourg Green Exchange

In September 2016, LuxSE became the first stock exchange globally to introduce a platform for green financial instruments – the Luxembourg Green Exchange (LGX). LGX gathers issuers that dedicate 100% of the raised funding to green investments. It requires green securities to adhere to strict eligibility criteria, including:

  • Declaring the security green, based on the ICMA GBP[6] or CBI[7] taxonomy, or equivalent. During the application process the issuer has to clearly state the intended green nature of the security.
  • Use of proceeds. Clear disclosure that the proceeds are exclusively used for financing or refinancing projects that are 100% green, according to the GBP or CBI eligibility taxonomy.
  • Ex-ante review and ex-post reporting. Issuer's commitment to provide both independent external review [8] and ex-post reporting.[9]

As of January 2017, LGX displays green securities worth over EUR 45 billion, including the world's first sovereign green bond issued by the Republic of Poland. As of January 2018, LGX accounted for 50% of the world's green bond market, which represent 1% of the global debt market.[10]

Equities

The Luxembourg Stock Exchange's main equity index is the LuxX Index – a weighted index of nine most valuable stocks by free float market capitalisation.[9] The index was fixed at 1,000 on 4 January 1999, the first trading day after Luxembourg adopted the Euro.[11][9] The nine companies currently composing the listing are:

Company Industry Country Weighting
Aperam ne Metals  LUX 15.82%
Arcelor Mittal Steel  LUX 20.04%
Brederode Investment  LUX 4.56%
Luxempart Investment  LUX 3.69%
Reinet Investments Investment  LUX 14.40%
RTL Group Media  LUX 20.63%
SES Telecommunications  LUX 19.55%
Socfinaf Resource extraction  LUX 0.68%
Socfinasia Resource extraction  LUX 0.59%
Source: Luxembourg Stock Exchange[12]

Footnotes
  1. "Opening hours and closing days". www.bourse.lu. Archived from the original on 23 December 2017. Retrieved 26 April 2018.
  2. (French)/(German) "Mémorial A, 1928, No. 23" (PDF). Service central de législation. Retrieved 2007-08-18
  3. "Archived copy". Archived from the original on 2014-12-24. Retrieved 2014-10-29.CS1 maint: archived copy as title (link)
  4. "Luxembourg Stock Exchange" (PDF). PricewaterhouseCoopers. Retrieved 2014-10-29.
  5. "LuxSE Lists EIB CAB as its 100th Green Bond and Confirms its International Leader Position", European Investment Bank, 2016-02-19.
  6. "Green Bond Principles". www.icmagroup.org. Archived from the original on 5 June 2017. Retrieved 26 April 2018.
  7. "Taxonomy". Climate Bonds Initiative. Archived from the original on 19 April 2018. Retrieved 26 April 2018.
  8. External review prior to listing is accepted in one or more of the following forms: second opinion, certification, verification, rating report. It is used, amongst others, to assess the use of proceeds, the selection/assessment process, as well as the management of proceeds.
  9. Ex-post reporting will be requested on a qualitative and/or quantitative basis as from the 12th month after listing of a green bond. Suggested frequency for ex-post reporting is once per year.
  10. ""The Luxembourg Green Exchange lists 50% of the world's green bonds"". The Business Report. 22 January 2018. Archived from the original on 26 April 2018. Retrieved 22 January 2018.
  11. "Luxembourg LuxX Index". Bloomberg. Retrieved 2007-08-19.
  12. "LuxX Price Index - Luxembourg Stock Exchange". www.bourse.lu. Retrieved 2018-03-20.

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