luxembourg stock exchange presentation to the chinese ...5638cc985fc49]luxembourg... · luxembourg...
TRANSCRIPT
Meeting LuxSE
September 1st, 2015
2 September 2015
Agenda
1. Luxembourg Financial Center
2. Presentation of LuxSE
3. Projects & challenges
4. Fundsquare
5. Main takeaways
3 September 2015
1. Luxembourg Financial Center
Overview
150 Banks
35 Germany, 15 France, 12 Switzerland, 10 Italy, 9 UK…
4.300 Investment Funds:
SICAV, SICAF, SICAR, OPCVM (Organismes de placement collectif)…
National & international Law firms:
Linklaters, A&O, Arendt & Medernach, Clifford Chance…
International Consulting firms:
PWC, EY, KPMG, Deloitte, BDO…
315 PSF (Professionnels du secteur financier):
Streff, Luxtrust, Xerox, Bourse de Luxembourg…
Associations:
ABBL, ALFI, LFF (Luxembourg for Finance)…
4 September 2015
1. Luxembourg Financial Center
Why an exchange?
Major reasons:
1. Matching Offer & Demand (Market)
2. Price transparency
3. Guarantee : Clearing& Settlement
4. Regulation
5. Anonymity
Investor A Investor B Broker A Broker B Sell Sell Buy Buy
5 September 2015
2. Presentation of LuxSE History (1/3)
Founded in 1928 as an independent stock exchange
6 September 2015
2. Presentation of LuxSE History (2/3)
Serving the international capital markets for 50+ years
7 September 2015
2. Presentation of LuxSE History (3/3)
Synonym for innovation & transparency
8 September 2015
28 listed local companies
158 employees
Shareholders:
54.7% : Local banks
32.9 % : Other institutional & private shareholders
12.4 % : Grand Duchy of Luxembourg
Turnover of EUR 42.7 million*
Wholly-owned subsidiary :
Fundsquare (since 2013)
Euronext partnership (since 2006)
2. Presentation of LuxSE An exchange not like the others
*2014
Revenue composition**:
LuxSE, Deutsche Börse, SGX & LSE
Trading
Listing Market Data & Services
Source: Annual reports 2013 of LuxSE, DB, SGX & LSE
**Excluding revenues from other activities (e.g. clearing, settlement…)
9 September 2015
2. Presentation of LuxSE Overview
40,000+ listings
66% Bonds
17% Funds
15% Warrants
2% Shares/GDRs
100+ countries
USA, UK, China, India,
Italy, Brazil, UAE…
3,000+ issuers
72 Sovereigns
12 Supranationals
54 currencies
USD, EUR, GBP,
JPY, CNY, IDR, …
10,600+ new listed securities in 2014
For a total issued amount of EUR 1 trillion
10 September 2015
2. Presentation of LuxSE More than 3.000 international issuers
11 September 2015
A leader at the forefront of financial innovation for 50+ years
Innovation at LuxSE:
A predilection for international partners & products
Continuous development to embrace new products
2. Presentation of LuxSE Innovation
12 September 2015
A choice of 2 markets
2. Presentation of LuxSE Markets
Bourse de Luxembourg
EU Regulated Market
Euro MTF
Exchange Regulated Market
75%
25%
Largest MTF in the EU
+10,000 listings
Approval by LuxSE
Presence of top issuers
Fast growing market since 2005
European passport
+30,000 listings
Approval by CSSF (Lux. Regulator)
Long history since 1929
IFRS mandatory
Listings
by market (Sep. 2015)
13 September 2015
“Listing in Luxembourg”:
A unique full service process not matched by any other listing exchange
”Listed in Luxembourg” : automatically implies ”Admission to trading”
i.e. collateral eligibility requirements
In cooperation with Euronext:
UTP platform & Cross-membership (BE, FR, NL, PT & LU)
2. Presentation of LuxSE A quality label
14 September 2015
Open-outcry auction market:
A disappearing model
Some showcases:
2. Presentation of LuxSE Markets today
NYSE Deutsche Börse
*Since 1996
LuxSE* Euronext Brussels
Automatic trading:
Standard model
15 September 2015
2. Presentation of LuxSE Indices
Lux RI Fund Index
Basket index representing Luxembourg-
domiciled funds operating in the area of
responsible finance.
Since 2013
Lux GDRs India
Lux GDRs Taiwan
Weighted capitalisation indices comprised
of all Luxembourg listed GDRs of the
respective country
Since 2009
LuxX
Since 1999
Basket index of major Luxembourg
listed companies.
16 September 2015
3. Projects & challenges RMB business (1/3)
*Former GreTai Securities Market (GTSM)
Cooperation agreement with Exchanges from greater China:
MoU with major Chinese banks:
17 September 2015
3. Projects & challenges RMB business (2/3)
RMB & Chinese issuers present at LuxSE:
RM
B d
eno
min
ated
sec
uri
ties
C
hin
ese
issu
ers
18 September 2015
3. Projects & challenges RMB business (3/3)
*Source Bloomberg, LuxSE, LSE
Stock & flow of Dim Sum bonds listed on LuxSE Source LuxSE
Dim Sum bonds listed outside Asia* Source Bloomberg, LuxSE, LSE
19 September 2015
3. Projects & challenges Islamic Finance & LuxFLAG (1/2)
*ongoing project – exact date to be confirmed
Pioneers in European Islamic Finance in a few dates:
1978 - 1st Islamic Finance institution
1982 - 1st Sharia compliant insurance company
2002 - 1st listing of a Sukuk on LuxSE
2010 - Recognition of Islamic Finance products for tax treatment
2011 - LuxSE already listed 16 Sukuk
2014 - 1st Euro denominated Sovereign Sukuk (AAA rating)
Latest Sukuk listings on LuxSE:
Islamic Republic of Pakistan i.e. The Second Pakistan International Sukuk Company Ltd
Grand Duchy of Luxembourg i.e. Luxembourg Treasury Securities S.A.
Republic of South Africa i.e. ZAR Sovereign Capital Fund Proprietary Ltd
Goldman Sachs i.e. Jany Sukuk Company
Luxembourg provides an efficient legal, tax & regulatory framework for Islamic Finance
20 September 2015
3. Projects & challenges Islamic Finance & LuxFLAG (2/2)
*Environnemental, Social & Gouvernance
High synergy potentials between Islamic Finance & Responsible Investments Strategies:
Contribute to further standardization of Sharia compliant instruments
Eventually create Islamic Finance dedicated LuxFLAG labels
Ultimately converge towards:
o Reaching critical mass for Islamic Finance investment products
o Harmonizing cross-regional compliance rules
o Lowering costs / Increasing performance
LuxFLAG, a possible bridge to Islamic Finance :
ESG* labeled funds, complying with well defined ethical terms
21 September 2015
3. Projects & challenges Investment funds & ETFs
Listing investment funds & ETFs: a great potential
Enhance issuer’s visibility & transparency of financial information
Improve investor confidence with regards to information
Provide eligibility for institutional investors
o e.g. UCITS funds, insurance companies & pension funds
Tax advantages for tracker funds
Increase liquidity in niche products (e.g. collateral eligibility)
Investment funds listed on LuxSE (As of January 2015)
22 September 2015
Leading European Exchange for High Yield bonds
Market share of more than 60%
In May 2014:
Listing of a record 12 bn € High Yield bond by Numericable & Altice
High Yield bonds are one of the most traded types of securities on LuxSE
3. Projects & challenges High Yield bonds
Selection of High Yield bond listings in 2014:
September 2015 23
4. Fundsquare Why the Fundsquare platform ?
Information Services
Different collection point for many different types of
fund data & documents
Collection through not standardized tools & multi-formats
Multiple transmissions of the same data
Exponential cost in data administration,…
Order Management Services
Increased operational complexity linked to Cross-border distribution of Funds
Growing concerns of actors regarding costs, inefficiencies, redundant systems, disparate
processes & lack of standardization
September 2015 24
4. Fundsquare Need for efficient cross-border distribution of funds
Single point of contact for:
Asset managers, Fund distributors, Transfer agents
Information & Reporting Services
Fund data (static & dynamic)
Reporting & statistics
« Référentiel de place » Project
Order Management Services
Real-time order routing
Commission & fee information
Translation services
September 2015 25
4. Fundsquare Fundsquare a subsidiary of LuxSE
Fundsquare in some numbers:
900,000 KIIDS
75,000 Prospectuses & financial reports
Feeding data to 110 distributors
69,000 share classes
7,500 funds
120 million NAV transmissions annually
Fund information from 1,500 promoters
1.1 million regulatory reports transmitted annually
26 September 2015
5. Main takeaways Solutions for international…
Increased comfort
High transparency
Easy access to information
IV. Investors
II. Asset Managers
Supporting the launch & distribution of funds
Listing on the Euro MTF market
Fundsquare platform
Pre-listing advisory services
Efficient & predictable listing process
One-stop-shop for regulatory reporting
III. Listing agents, law firms & banks
I. Issuers
Access to international investors
Visibility - Promotion
Competitive pricing
27 September 2015
5. Main takeaways Key action points
Increase visibility of LuxSE:
Strengthen presence in international markets
Develop closer links with our key stakeholders
Strengthen the position of the Luxembourg Financial Center:
Support of LFF & ALFI promotion efforts
Leverage the strong position of LuxSE
Evolve with the market needs:
Refine our product offering
Enhance listing process efficiency
Contribute to financial innovation:
e.g. Virtual currencies, Responsible & Islamic finance,
Crowdfunding, RMB internationalization…
Contact details & links
Maurice BAUER Secretary General
More information on:
Follow us on:
www.bourse.lu/home
www.fundsquare.net
@LuxembourgSE
@fundsquare
luxembourg-stock-exchange
fundsquare