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Listing: an activity with very strong growth
In 2007, the Luxembourg Stock Exchange maintained its extremely dynamic listing activity. In fact, 13,352 new securities were admitted to the official list, against 10,547 in 2006. The main segments of newly-listed securities were bonds (8,294 units), Luxembourg investment funds (1,393 units), warrants (3,624 units), and Global Depositary Receipts (25 units).
As at 31 December 2007, the Luxembourg Stock Exchange held 45,572 quotation lines (against 39,860 en 2006) on the two markets that it operates; the regulated market in accordance with European regulations and the Euro MTF market. Of the 45,572 quoted securities, 41,333 were listed on the regulated market and 4,239 were listed on the Euro MTF market, which was launched by the Exchange on 18 July 2005.
The largest segments were bonds, with 31,469 lines, and Luxembourg investment funds, with 7,220 lines. The majority of segments saw significant increases: bonds (+ 2,844 units), Luxembourg investment funds (+ 512 units) and warrants (+ 2,383 units).
These figures testify to the attractiveness of the Luxembourg financial centre for admissions to trading of international securities. In fact, the Luxembourg Stock Exchange has strengthened its leading position in terms of the number of domestic and international bonds listed by a European exchange. On an international level, the Exchange remains the primary listing centre for Global Depositary Receipts.
The LuxX index
During the year, the lowest level of the LuxX was reached on 22/11/2007 at 2,154.21 points. As for the highest level, this was reached on 12/10/2007 at 2,578.24 points.
Trading volumes on the secondary market reached an amount of € 652.00 million. Trades in shares reached an amount of € 203.66 million; trades in shares of Luxembourg investment funds representing 31.23% of the total. Regarding the bond segment, trades increased to € 448.34 million.
Electronic processing and dissemination of stock exchange and financial information.
The Luxembourg Stock Exchange continued the development of its range of financial information products and services. At the end of 2007, the Exchange and CCLux, its subsidiary specialised in investment fund data and information, were providing products and services to some 150 clients (data vendors, analysts, media and others).
In addition, the Luxembourg Stock Exchange promoted the use of its “e-file” application, which makes it possible to carry out, in a virtual environment, the various steps and procedures linked to the launch of an investment fund or the listing of a security. The application facilitates the registration of financial instruments offered to the public and the sending of regulatory reports to the authorities.
Partnership with NYSE Euronext
Within the framework of their joint partnership, Euronext N.V., a subsidiary of NYSE Euronext, and the Luxembourg Stock Exchange created, on 21 May 2007, a European Economic Interest Grouping (E.E.I.G.) whose headquarters is in Luxembourg.
Considering the inherent characteristics of this vehicle, the E.E.I.G. constitutes an entirely appropriate vehicle to carry out the projects of the partnership, the first phase of which was achieved on 2 May 2007 with the migration of the Luxembourg Stock Exchange to the NSC® trading platform. The changeover to NSC® is the initial step in the exchange of technologies foreseen by the partnership. When technical aspects have been put in place, the partners will take advantage of the entirety of the capabilities of the new E.E.I.G in order to market the Luxnext joint brand to capital markets players, as well as to expand the corporate bond segment in the areas of listing, trading and information dissemination.
A new legal framework
On 13 July 2007, the Chamber of Deputies passed the law on markets in financial instruments, transposing, in particular, directive 2004/39/CE of the European parliament and of the Council of 21 April 2004 concerning markets in financial instruments.
The creation of this new legal framework had the important consequence of the disappearance of the concession granted to the Société de la Bourse since its beginning. Furthermore, it removed the legal basis of all regulatory capacities entrusted in the Stock Exchange Commission, an authority made up of representatives from Stock Exchange members. As a result, the Stock Exchange Commission will move to an advisory role, focusing in particular on trading activities.
Additionally, on 19 December 2007, the Chamber of Deputies passed a second important text for the Luxembourg capital market, namely the law relating to transparency requirements concerning information about issuers whose securities are admitted to trading on a regulated market. This law transposes directive 2004/109/CE of the European Parliament and of the Council of 15 December 2004 on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market.
Stock Exchange Day 2007
The Stock Exchange Day took place on 14 March 2007 at the Hemicycle in the Conference Centre of Luxembourg-Kirchberg and was attended by 700 guests drawn from Luxembourg’s economic, social and financial circles.
The guest speaker was Count Maurice Lippens, Chairman of the Board of Fortis S.A., who spoke on the theme: “European Financial Integration: does it still matter?” In particular, the speaker pointed to the progress already made in European financial integration, and, after highlighting specific challenges brought about by the globalisation of economies, reaffirmed the importance of financial integration to ensure the harmonious operation of the domestic market of the European Union.
Involvement in the promotion of the Luxembourg financial centre
The Luxembourg Stock Exchange took part in a mission, led by the Minister for the Treasury and Budget, for the promotion of the financial centre in India from 23 to 26 January 2007. Due to the large number of Indian Depositary Receipts listed on its two markets, the Luxembourg Stock Exchange took an active part in this mission, notably by presenting its activities and operations as well as the regulatory framework during two information seminars in Mumbai and Delhi.
The Luxembourg Stock Exchange also participated in various missions for promoting the activities of the Luxembourg financial centre abroad. It likewise actively participated in the works and initiatives of PROFIL, the Luxembourg Financial Industry Federation, contributed in the organisation of the Luxembourg Financial Forum of 1 June 2007 and in a seminar presenting the financial centre in Lyon on 7 November 2007.
Luxembourg, 31 December 2007
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