On 10 October 2022, the Luxembourg Stock Exchange (LuxSE) launched the new FastLane service for Euro MTF listings.
What is FastLane?
This new service aims at simplifying and accelerating the admission to trading on the Euro MTF market of (essentially) debt securities issued by qualifying issuers. This service will be open to non-European sovereigns and corporate issuers whose shares are admitted to trading on an EU Regulated Market (within the meaning of MiFID II). Such qualifying issuers will no longer be required to prepare a dedicated prospectus to be reviewed and approved by the LuxSE. Rather, they will need to file a so-called “Admission Document”.
Application process
The Admission Document is a stand-alone document containing the terms and conditions of the securities for which admission on the Euro MTF is requested, in an electronic searchable format. The Admission Document will not need to be reviewed or approved by the LuxSE. The draft version of the Admission Document must be submitted to the LuxSE at least three business days in advance, and the final version of the Admission Document must be filed with the LuxSE no later than at the beginning of the admission to trading of the securities.
The application must be supported by a new dedicated Application Form referring to the publicly available sources of information with regard to the issuer at hand and the securities to be admitted.
This means that qualifying issuers will be spared most of the burden relating to the preparation of a dedicated Euro MTF prospectus, saving both costs and time. FastLane thus creates a very efficient “time to listing” process for new debt securities by qualifying issuers.
The Rules and Regulations of the LuxSE have been updated to reflect this alternative open to qualifying issuers. That said, qualifying issuers can still submit a prospectus on a voluntary basis under the provisions of the common regime for Euro MTF applications.
To avoid any misunderstanding, qualifying issuers that wish to benefit from the FastLane service will still be bound by the disclosure obligations applicable to issuers having securities admitted to trading on the Euro MTF (including under the Market Abuse Regulation).
About the Euro MTF
The Euro MTF market operated by the LuxSE is the largest MTF in Europe. It is not a regulated market and therefore does not fall within the scope of application of the Prospectus Regulation or the harmonised EU transparency requirements. It does, however, fall within the scope of the Market Abuse Regulation.
It is typically designed to offer issuers an alternative market to list their debt securities in a cost-efficient fashion, with more flexibility and less stringent disclosure and reporting requirements. The Euro MTF is a popular listing venue for issuers of high-yield bonds and debt securities restricted to qualified investors.
Applications for trading on the Euro MTF are reviewed and approved only by the LuxSE.
Contact information
If you have specific questions and/or requests on this topic, feel free to contact our experts Arnaud Barchman Wuytiers van Vliet, Basile Fémelat or Peggy Muck.
On 10 October 2022, the Luxembourg Stock Exchange (LuxSE) launched the new FastLane service for Euro MTF listings.
What is FastLane?
This new service aims at simplifying and accelerating the admission to trading on the Euro MTF market of (essentially) debt securities issued by qualifying issuers. This service will be open to non-European sovereigns and corporate issuers whose shares are admitted to trading on an EU Regulated Market (within the meaning of MiFID II). Such qualifying issuers will no longer be required to prepare a dedicated prospectus to be reviewed and approved by the LuxSE. Rather, they will need to file a so-called “Admission Document”.
Application process
The Admission Document is a stand-alone document containing the terms and conditions of the securities for which admission on the Euro MTF is requested, in an electronic searchable format. The Admission Document will not need to be reviewed or approved by the LuxSE. The draft version of the Admission Document must be submitted to the LuxSE at least three business days in advance, and the final version of the Admission Document must be filed with the LuxSE no later than at the beginning of the admission to trading of the securities.
The application must be supported by a new dedicated Application Form referring to the publicly available sources of information with regard to the issuer at hand and the securities to be admitted.
This means that qualifying issuers will be spared most of the burden relating to the preparation of a dedicated Euro MTF prospectus, saving both costs and time. FastLane thus creates a very efficient “time to listing” process for new debt securities by qualifying issuers.
The Rules and Regulations of the LuxSE have been updated to reflect this alternative open to qualifying issuers. That said, qualifying issuers can still submit a prospectus on a voluntary basis under the provisions of the common regime for Euro MTF applications.
To avoid any misunderstanding, qualifying issuers that wish to benefit from the FastLane service will still be bound by the disclosure obligations applicable to issuers having securities admitted to trading on the Euro MTF (including under the Market Abuse Regulation).
About the Euro MTF
The Euro MTF market operated by the LuxSE is the largest MTF in Europe. It is not a regulated market and therefore does not fall within the scope of application of the Prospectus Regulation or the harmonised EU transparency requirements. It does, however, fall within the scope of the Market Abuse Regulation.
It is typically designed to offer issuers an alternative market to list their debt securities in a cost-efficient fashion, with more flexibility and less stringent disclosure and reporting requirements. The Euro MTF is a popular listing venue for issuers of high-yield bonds and debt securities restricted to qualified investors.
Applications for trading on the Euro MTF are reviewed and approved only by the LuxSE.
Contact information
If you have specific questions and/or requests on this topic, feel free to contact our experts Arnaud Barchman Wuytiers van Vliet, Basile Fémelat or Peggy Muck.