Angola
BODIVA – Angolan Debt and Stock Exchange
Australia
The Australian Securities Exchange is the main exchange in Australia.
Belgium
Euronext Brussels is a regulated market for the purposes of the Markets in Financial Instruments Directive, so issuers are subject to the requirements of a number of EU Directives, including the Market Abuse Directive and the Transparency Directive.
Euronext Growth is the main multilateral trading facility (MTF) in Belgium.
Brazil
The main exchanges are the São Paulo Futures and Stock Exchange (B3 - Brasil Bolsa Balcão S.A.).
Canada
Most debt securities in Canada are not listed on a securities exchange but trade over-the-counter through alternative trading systems, such as:
- CanDeal;
- CBID/CBID Institutional; and
- Market Axess.
The two principal stock exchanges in Canada both list debt as well as equity securities:
- Toronto Stock Exchange (TSX); and
- TSX Venture Exchange (TSXV).
Issuers seeking to list on either the TSX or TSXV must complete a listing application and various listing requirements.
Chile
The main exchanges are the:
- Stock Exchange (Santiago and Valparaiso);
- Electronic Exchange; and
- Products Exchange.
Please note that the Santiago Stock Exchange forms part of the Latin American Integrated Market (MILA), which is the result of the agreement signed between the Santiago Stock Exchange (Chile), the Colombian Stock Exchange, the Lima Stock Exchange (Peru) and the Mexican Stock Exchange, as well as the related central securities depositories (DCV in Chile, Deceval in Colombia, Cavali in Peru and Indeval in Mexico). This establishes a regional market for the trading of equities in the four countries, making MILA the Pacific Alliance Securities Market. MILA's mission is to integrate the securities markets of member countries and foster the growth of financial businesses for participants, offering the best alternative for investment, diversification, liquidity and financing.
Colombia
Trading system transactions are conducted through a stock exchange (currently the Colombian Stock Exchange – Bolsa de Valores de Colombia (CSE)), with the participation of an authorized broker, or through securities trading systems. The CSE provides its own set of regulations (for example, short selling, derivatives and listing regulations). The main securities trading platforms in Colombia are as follows.
- CSE manages and regulates three trading systems:
- the Colombian Electronic Market (Mercado Electrónico Colombiano), through which securities other than public debt securities are traded;
- the Colombian equity market; and
- the standardized derivatives market.
- Electronic Trading System (Sistema Electrónico de Negociación) is one through which mainly public debt securities are traded, and which is managed by the Colombian Central Bank.
- Foreign Securities Quoting System (Sistemas de Cotización de Valores Extranjeros (SIC)) is one through which foreign securities are sponsored by a local broker for listing and trading. Only stock exchanges and administrators of securities trading systems that are under the Superintendency of Finance's surveillance may administer the SIC. Retail investors are able to conduct transactions through this system.
- Over-the-Counter Market, different from the foregoing, covers securities transactions that are not conducted through the CSE or through a securities trading system and must be registered through a different registration system.
Please note that a Latin American exchange is the most significant recent project to enhance the local capital markets. Mercado Integrado Latinoamerican (MILA) is a project to unify the stock exchanges markets of Colombia, Chile, México and Peru in order to create a single stock market that will allow the negotiation of stocks of the most representative companies in the region. It is the result of an agreement signed among the aforesaid exchanges and its most important feature is that none of the entering exchanges compromises its autonomy or independence in regulatory or administrative issues as a result of the agreement. Instead, investors may benefit from MILA through an intermediary by using the local platform in local currency, but reaching the companies listed on any of the exchanges involved.
Czech Republic
The Prague Stock Exchange has two principal markets on which debt securities are traded:
- Official Market; and
- Regulated Market.
The Prague Stock Exchange Official Market
The Official Market is intended exclusively for trade in the largest and most prestigious bonds issued by the entities coming from the public administration, corporate and financial sectors.
If they adhere to the statutory rules of the Official Market they must primarily meet the criterion of minimum issue value of €200,000.
The Prague Stock Exchange Regulated Market
The Regulated Market is intended for trade in the major bonds and other debt securities issued by the entities coming from the public administration, corporate and financial sectors.
The Regulated Marked may accept the issues which meet the less demanding statutory requirements of the Regulated Market.
Exchanges are governed by the Act on Capital Market Undertakings, effectively replacing the old Act No. 214/1992 Coll., Stock Exchange Act.
Finland
Nasdaq Helsinki is a regulated market licensed in Finland. Nasdaq First North is a market for smaller companies and growth companies.
Trading at Nasdaq Helsinki is governed by the Issuer Rules, the Member Rules and the Warrant Rulebook. Nasdaq First North is an MTF that is subject to separate rules.
Issuers on the Nasdaq Helsinki market are subject to the requirements of a number of EU Directives, including the Market Abuse Directive (implemented in Finland by several Acts, including the Markets Securities Act and the Act on Trading in Financial Instruments) and the Transparency Directive (implemented in Finland by the Markets Securities Act).
France
Market operator NYSE Euronext manages the Euronext Paris regulated markets in France.
Germany
The main securities exchange is the Frankfurt Securities Exchange operated by Deutsche Börse AG. The Stuttgart stock exchange is important for structured notes.
Ghana
Ghana Fixed Income Market (GFIM) of the Ghana Stock Exchange.
Hungary
The Budapest Stock Exchange has two principal sections on which debt securities are traded:
- debt securities section (cash market); and
- futures and options section (derivatives market).
Debt securities section
Debt securities represented in the debt securities section of the Budapest Stock Exchange include government debt securities (treasury bills and government bonds), corporate bonds and mortgage bonds.
Derivatives section
The derivatives section of the Budapest Stock Exchange consists of futures and options contracts based on single stocks, equity indices, FX and interest rate.
Ireland
The Irish Stock Exchange joined Euronext in March 2018 and now operates under the trading name Euronext Dublin. Issuers of debt securities can list on either the Euronext Dublin Regulated Market (Regulated Market) or the Global Exchange Market (GEM).
The Regulated Market is a regulated market (as defined under MiFID II) and Euronext Dublin is the authority for
the approval of the securities for admission to listing and trading on the Regulated Market.
The GEM is an exchange-regulated market and Multilateral Trading Facility as defined under MiFID II which is aimed at professional investors.
Issuers and debt securities listed on the Regulated Market are subject to the prospectus regime, the transparency regime and the market abuse regime, whereas issuers of debt securities listed on the GEM are subject to the market abuse regime only.
Euronext Dublin has published a comprehensive set of rules for listing a variety of debt securities on the Regulated Market (Euronext Dublin Rule Book – Book II: Listing Rules) and GEM (Global Exchange Market – Listing and Admission to Trading Rules for Debt Securities – Release 6). These rules impose obligations on issuers of debt securities at the time of application for admission to trading and listing, and on an ongoing basis.
Italy
Borsa Italiana S.p.A. provides different markets where debt securities may be traded. In this respect, the primary market in Italy is the MOT (Mercato Telematico delle obbligazioni e dei titoli di Stato). Pursuant to the Rules of the Markets organized and managed by Borsa Italiana S.p.A., the financial instruments that may be traded on the MOT are bonds (excluding convertible bonds), sovereign debt, Eurobonds, asset-backed securities, structured bonds, covered bonds and other debt securities and instruments tradable in the monetary market.
The MOT consists of two segments:
- DomesticMOT, for debt securities that are settled through Monte Titoli S.p.A., according to the Instructions accompanying the Rules of the Markets organized and managed by Borsa Italiana S.p.A.; and
- EuroMOT, for debt securities that are settled through Euroclear/Clearstream, according to the Instructions accompanying the Rules of the Markets organized and managed by Borsa Italiana S.p.A..
Furthermore, there are other trading venues – in particular Multilateral Trading Facilities – where debt securities may be traded:
ExtraMOT
The ExtraMOT is a multilateral trading facility, regulated by Borsa Italiana S.p.A., for trading corporate bonds issued by Italian and foreign companies which are already listed on other regulated EU markets, as well as non-listed bonds and debt instruments issued by Italian small and medium-sized enterprises (SMEs).
ExtraMOT Pro
The ExtraMOT Pro is the professional segment of the ExtraMOT dedicated to trading, inter alia, bonds (including convertible bonds), commercial papers and project bonds, generally issued by Italian SMEs. Trading is only open to professional investors on the ExtraMOT Pro.
EuroTLX
EuroTLX is the multilateral trading facility organized and managed by Borsa Italiana S.p.A., targeted to non-professional and professional investors trading in retail size and mainly focused on fixed income securities.
Ivory Coast
The Regional Stock Exchange (BRVM) is the main stock exchange available and it is shared by the eight member states of the WAEMU.
The stock market is divided into two markets which correspond to two levels: the primary market and the secondary market.
The primary market
The role of the primary market is to bring together companies looking for financings and capital holders.
The BRVM is regulated and issuers are to comply with different rules and regulations.
On the primary market, securities are issued by companies (issuers).
New issuance of securities is and may be done through the primary market during an IPO or a capital increase.
Securities issuance of a company that goes public can be done on the primary market and those securities may be purchased by investors. The latter will then put those securities back up for sale on the secondary market.
The secondary market
This market is far from being active. On the secondary market, stakeholders and investors exchange issued (on the primary market) securities to be offered to savers. Investors will be able to trade these securities among themselves on the secondary market.
Transactions on this market are conducted through certified intermediaries such as banks, non-bank financial institutions, regional financial institutions, asset managers and brokerage firms.
Japan
The Tokyo Stock Exchange is the primary exchange in Japan. More than 20 convertible bonds are listed on the Tokyo Stock Exchange as of March 2017.
Luxembourg
In Luxembourg, the Luxembourg Stock Exchange operates two different markets for trading debt securities:
- the regulated market qualifies as a European-regulated market as defined in the Directive 2014/65/EU on markets in financial instruments. This market offers a European passport that facilitates listing on other EU-regulated markets through a notification procedure.
- the Euro MTF is a multilateral trading facility. Offering documents are subject to less stringent disclosure and reporting requirements but issued debt securities do not benefit from the European passport.
The Luxembourg Stock Exchange also offers the possibility to list securities on the securities official list (SOL), without any trading.
Mauritius
The Stock Exchange of Mauritius
The Stock Exchange of Mauritius operates two markets:
- the Official Market; and
- the Development and the Enterprise Market.
The Official Market
The Official Market, or the Main Board of the Stock Exchange of Mauritius, lists some of the largest companies in Mauritius, spanning across different sectors of activity of the local economy.
The Development and the Enterprise Market
The Development and the Enterprise Market is a market targeted towards small and medium-sized enterprises and newly set-up companies which possess a sound business plan and demonstrate good growth potential.
Mexico
Currently, the regulated exchanges in Mexico are Bolsa Mexicana de Valores (Mexican Stock Exchange) and Bolsa Institicional de Valores (BIVA).
Since 2014, the Mexican Stock Exchange has been part of the Mercado Integrado Latinoamericano (MILA), an agreement that integrates the stock exchange markets of Chile, Colombia, Mexico, and Peru, as part of economic integration efforts among the Pacific Alliance member countries. MILA is not a regulated stock exchange but an agreement between regulated stock exchanges establishing a regional market to trade equities from the four countries.
In october 2015, BIVA formally applied for a concession to organize and operate a new stock exchange in Mexico, wich was granted by the mexican financial authorities in August 2017.
Morocco
The organization, management and development of the stock market are granted to the Casablanca Stock Exchange (Bourse de Casablanca).
The Casablanca Stock Exchange manages the regulated markets of the Stock Exchange.
Netherlands
Currently, the following exchanges are authorized to operate as a regulated market in the Netherlands:
- Euronext N.V.;
- Euronext Amsterdam N.V.;
- ICE ENDEX; and
- Nxchange.
Furthermore, TOM B.V. is authorized as a multilateral trading facility in the Netherlands.
New Zealand
The main exchange is the NZX Main Board. It is privately owned by NZX Limited, which itself is a listed company. NZX operates five other markets – NZX Debt Market, NZX Dairy Derivatives Market, NZX Equity Derivatives Market and the Fonterra Shareholders' Market. Market operators are licensed by the Financial Markets Authority under the Financial Markets Conduct Act 2013.
There are three other licensed market operators in New Zealand – ASX 24 (operated by Australia Securities Exchange Limited), ICE Futures USA and ICE Futures Europe. There are also some smaller unlicensed secondary markets such as Unlisted.
Norway
There are two equity markets in Norway. Oslo Børs (Oslo Exchange Market) is the only regulated market for securities trading. For companies that do not meet the requirements of the Oslo Exchange Market, there are is another licensed and regulated market called Oslo Axess. There are also unregulated and multilateral trading facility (MTF) marketplaces such as Merkur Market, Oslo Connect and Nordic ABM.
Peru
The unique legal stock exchange in Peru is the Lima Stock Exchange (Bolsa de Valores de Lima S.A.), which is a corporation (sociedad anónima) that offers listed securities trading services and provides services, systems and mechanisms for the brokering of publicly offered securities and instruments. The company operates under the supervision of the Superintendence of Securities Market (SMV).
Since 30 May 2011, Lima Stock Exchange (Bolsa de Valores de Lima), Santiago Stock Exchange (Bolsa de Comercio de Santiago), Colombia Stock Exchange (Bolsa de Valores de Colombia) and the Mexican Stock Exchange (Bolsa Mexicana de Valores) (since June 2014) established an alliance namely the Latin American Integrated Market (Mercado Integrado Latinoamericano – MILA) in order to foster the trading activity in those markets by allowing the intervention and operation of investors and intermediaries in any of such stock markets.
Poland
The Polish debt capital market includes:
- the main stock exchange market organized by the Warsaw Stock Exchange (WSE);
- NewConnect – an alternative stock exchange market organized by the WSE; and
- Catalyst – a bonds market.
The Main Market of the WSE is a regulated market for the purposes of the Markets in Financial Instruments Directive (MiFiD), so issuers on the Main Market are subject to the requirements of a number of EU Directives, including the Market Abuse Regulation, Market Abuse Directive and the Transparency Directive. Securities listed on the Main Market can be passported to other European Economic Area markets in order to access international investors.
NewConnect is an alternative stock exchange operated by the WSE, allowing smaller companies to float shares. The exchange is conducted outside the regulated market as a multilateral trading facility. Compared to the main market of the WSE, NewConnect offers lower costs for floated companies, simplified entrance criteria, and limited reporting requirements. It is also characterized by higher risk and in turn a higher rate of return.
The bond market operates on transaction platforms of the WSE and BondSpot, jointly organized by Catalyst, which comprises four trading platforms:
- two platforms operated by the WSE (a regulated market and an alternative trading system) are dedicated to retail investors; and
- two platforms operated by BondSpot (regulated market and ATS) are dedicated to wholesale investors.
All platforms support trading in non-treasury debt instruments: municipal bonds, corporate bonds, and mortgage bonds. The Catalyst's architecture ensures that the market can accommodate issues of different sizes and parameters and serve the needs of different investor groups: wholesale and retail investors, institutions, and individuals.
The rules of trading on the regulated markets and in the alternative trading systems are identical and the only differences apply to block trades. Execution of transactions on all Catalyst markets is guaranteed by the National Depository for Securities. Issuers are bound by reporting requirements, including current and periodic reports.
Portugal
Regulated markets
The regulated markets in Portugal, for the purposes of the Markets in Financial Instruments Directive II (MiFID II) are:
- Euronext Lisbon (Sociedade Gestora de Mercados Regulamentados, S.A.);
- futures and options markets, managed by Euronext Lisbon (Sociedade Gestora de Mercados Regulamentados, S.A.); and
- OMIP Derivatives market, managed by OMIP - Operador do Mercado Ibérico de Energia.
These markets are subject to the requirements of several EU directives, including the Market Abuse Directive and the Transparency Directive.
Multilateral trading facilities
In Portugal there are the following multilateral trading facilities:
- Euronext Lisbon (Sociedade Gestora de Mercados Regulamentados, S.A.); and
- Alternext, managed by Euronext Lisbon (Sociedade Gestora de Mercados Regulamentados, S.A.).
Puerto Rico
Puerto Rico does not have organized exchanges to trade securities. Securities issued in Puerto Rico or issued by Puerto Rican issuers are traded in organized exchanges in the United States such as the New York Stock Exchange and NASDAQ.
Romania
The Bucharest Stock Exchange
The Bucharest Stock Exchange is authorized by the Financial Supervisory Authority (FSA) as a market operator and, as such, it manages a spot regulated market.
The Bucharest Stock Exchange is also authorized by the FSA as a system operator. In this capacity, it operates an Alternative Trading System (Multilateral Trading Facility).
Russia
The Moscow Exchange has two principle markets on which debt securities are traded subject to its rules:
- the Equity Capital Market which offers trading in shares, depository receipts, fund shares, mortgage participation certificates and exchange traded funds; and
- the Debt Capital Market which offers trading in state bonds, corporate bonds, and corporate and sovereign Eurobonds.
Another active exchange in Russia is the Saint-Petersburg Exchange where shares, options and commodities are traded. It is notable that, for the first time on the Russian market, the Saint-Petersburg Exchange has introduced an opportunity to trade foreign securities within the Russian jurisdiction.
Senegal
The Regional Stock Exchange (BRVM) is the main stock exchange available and it is shared by the eight member states of the WAEMU.
The stock market is divided into two markets which correspond to two levels: the primary market and the secondary market.
The primary market
The role of the primary market is to bring together companies looking for financings and capital holders.
The BRVM is regulated and issuers are to comply with different rules and regulations.
On the primary market, securities are issued by companies (issuers).
New issuance of securities is and may be done through the primary market during an IPO or a capital increase.
Securities issuance of a company that goes public can be done on the primary market and those securities may be purchased by investors. Those investors will then put those securities back up for sale on the secondary market.
The secondary market
The secondary market is far from being an active one. On the secondary market, stakeholders and investors exchange already issued (on the primary market) securities to be offered to savers. Investors will be able to trade these securities among themselves on the secondary market.
Transactions on this market are conducted through certified intermediaries such as banks, non-bank financial institutions, regional financial institutions, asset managers and brokerage firms.
Singapore
The Singapore Exchange (SGX) has two principal markets on which debt securities are traded:
- the SGX Mainboard; and
- the SGX Catalist.
Slovak Republic
The Bratislava Stock Exchange (Burza cenných papierov v Bratislave, a.s.) is the responsible authority for trading on regulated markets. Regulated markets are divided into the:
- Regulated Free Market; and
- Listed Securities Market.
The establishment and position of the Bratislava Stock Exchange in the process of trading of securities is governed by the Stock Exchange Act. The Stock Exchange Act also regulates the operation and dissolution, the trading of securities and other financial instruments, and the supervision of the Bratislava Stock Exchange.
The Regulated Free Market
The Regulated Free Market is a stock exchange market. The traded securities and their issuers must meet the requirements provided under the Stock Exchange Act. A security may be admitted to the Regulated Free Market only in the following circumstances:
- The security is a financial instrument.
- The security is a fungible security.
- The security's transferability is not limited.
- The security is a book-entry security.
- Securities issued by issuers located in another member state which permits the admission of definitive securities on the listed securities market may be admitted to the Regulated Free Market, provided that the Bratislava Stock Exchange discloses that the other member state permits the admission of definitive securities on its listed securities market.
- The security is issued in accordance with the law of the country where it was issued and the issuer complies with the applicable requirements for the issuance of securities under the laws of the country in which the issuer has its registered office.
- Bratislava Stock Exchange is not aware of facts which, if the security is admitted to trading on a regulated market, could cause damages for investors or pose a serious threat to their interests or be contrary to public interest.
- A prospectus has been approved and published, unless provided otherwise.
- The issue price of the security has been fully paid up.
- The security's subscription was successfully completed based on a public offer, or the period during which it was possible to receive applications for subscription of securities has lapsed (this does not apply to bonds which are issued continuously when the deadline for subscription is not fixed).
- Other requirements provided under the Act on Stock Exchange or a separate Act must also be considered.
The Listed Securities Market
The Listed Securities Market is a stock exchange market where the traded securities and their issuers meet the conditions provided under the Act on Stock Exchange described above, as well as separate conditions provided under the Stock Exchange Act, depending on the type of security (bonds or shares).
A bond may be admitted to the Listed Securities Market only if the bond and its issuer satisfies the above stated conditions and the value of its issuance as determined by the issue price of the bonds is less than EUR200,000.
South Africa
JSE Limited (JSE)
Subject to compliance with both the Debt Listings Requirements and the listings requirements relating to the main market of the JSE, an issuer can list its debt securities on the main market of the JSE. An issuer may also list its debt securities on an alternative exchange of the JSE called the Interest Rate Market.
Spain
The main exchanges on which debt securities are traded in Spain are:
AIAF
AIAF is the Spanish regulated market for corporate debt and private bonds integrated in Bolsas y Mercados Españoles (BME is the holding company of the Spanish regulated exchanges), the Spanish securities markets operator. AIAF is a regulated market and is under the control and supervision of the public authorities in respect of its operation, admission to trading and disclosure of information.
MARF
MARF is the Spanish alternative bond market and considered as an alternative funding resource where different solvent companies may raise funds through the issuance of bonds. MARF adopts the legal structure of a multilateral trading facility (MTF), hence, it is considered as non-official market, similar to those that may be found in other European countries. Thus, the access requirements of MARF are more flexible than the requirements for regulated markets and, as a consequence, MARF has a greater flexibility and lower costs throughout the issuance process.
Securities which may be admitted to trade in the MARF are those exclusively targeted to qualified investors and whose nominal value is of a minimum amount of €100,000 (i.e. they do not fall under the requirement to publish a prospectus).
Sweden
Regulated markets
Sweden has three regulated markets for the purpose of the Markets in Financial Instruments Directive (MiFiD II), being NASDAQ OMX Stockholm (Nasdaq OMX), Nordic Growth Market NGM Equity (NGM Equity) and Nordic Growth Market Nordic Derivatives Exchange (NDX).
As a consequence of Nasdaq OMX, NGM Equity and NDX being regulated markets, issuers on these markets are subject to the requirements of a number of EU Directives, including the Market Abuse Directive and the Transparency Directive. Securities listed on these markets can be passported to other European Economic Area markets in order to access international investors.
Multilateral trading facilities (MTFs)
First North, Nordic MTF and Aktietorget are so called MTFs under MiFiD II, which means that they are not considered regulated markets and therefore provide a more flexible alternative to the requirements regarding denomination and financial information, compared to the rules which apply to regulated markets across Europe. As such MTFs permit reporting under national Generally Accepted Accounting Principles (GAAP), they offer an alternative for issuers not wishing to prepare their accounts in accordance with International Financial Reporting Standards (IFRS).
Thailand
Apart from the primary market in which debt securities are traded after issuance, the Thai Bond Exchange (TBX) regulated by the Stock Exchange of Thailand is the main exchange platform. The TBX enhances the bond secondary market. Prior to the TBX, bonds were traded over-the-counter among the institutional investors. Currently, only bonds issued by publicly listed companies are allowed to be traded on the TBX.
An investor seller needs to open an account with a member of the TBX or a brokerage company in order to sell and purchase securities. Investors submit orders to sell or purchase through such members or brokerage companies who will forward such order into the exchange platform. Automatic Order Matching is applicable to match orders of sale and purchase of debt securities.
Ukraine
There are four principal markets on which debt securities are traded:
- the Ukrainian Exchange;
- the Ukrainian Stock Exchange;
- the PFTS Ukraine Stock Exchange; and
- the Ukraine Interbank Currency Exchange.
UK - England and Wales
The London Stock Exchange has three principal markets on which debt securities are traded:
- the Main Market;
- the Professional Securities Market; and
- the International Securities Market.
The London Stock Exchange Main Market
The Main Market is a regulated market for the purposes of the Markets in Financial Instruments Directive (MiFiD), so issuers on the Main Market are subject to the requirements of a number of EU Directives, including the Market Abuse Directive and the Transparency Directive. Securities listed on the Main Market can be passported to other European Economic Area markets in order to access international investors.
The London Stock Exchange Professional Securities Market
The Professional Securities Market is an exchange-regulated market subject to the rules of the London Stock Exchange. It is not a regulated market for the purposes of MiFiD. It is therefore outside the requirements of the Prospectus regulation and provides a more flexible alternative to the requirements regarding denomination and financial information, compared to the rules which apply to regulated markets across Europe. As it permits reporting under national Generally Accepted Accounting Principles (GAAP), it offers an alternative for issuers not wishing to prepare financial information to International Financial Reporting Standards (IFRS).
The London Stock Exchange also operates the Order Book for Retail Bonds, which is an electronic trading platform for debt securities that are issued in denominations of less than £100,000 and listed on the Main Market.
The London Stock Exchange International Securities Market
The International Securities Market was launched in May 2017. It is an exchange-regulated market subject to the rules of the London Stock Exchange. Securities admitted to trading on the International Securities Market are not listed on the Official List maintained by the UK Financial Conduct Authority (FCA), so FCA approval is not required. Admission to trading and approval of the admission document is conducted by the London Stock Exchange only.
UK - Scotland
The London Stock Exchange has two principal markets on which debt securities are traded:
- the Main Market; and
- the Professional Securities Market.
The London Stock Exchange Main Market
The Main Market is a regulated market for the purposes of the Markets in Financial Instruments Directive (MiFiD), so issuers on the Main Market are subject to the requirements of a number of EU Directives, including the Market Abuse Directive and the Transparency Directive. Securities listed on the Main Market can be passported to other European Economic Area markets in order to access international investors.
The London Stock Exchange Professional Securities Market
The Professional Securities Market is an exchange regulated market subject to the rules of the London Stock Exchange. It is not a regulated market for the purposes of MiFiD and therefore provides a more flexible alternative to the requirements regarding denomination and financial information, compared to the rules which apply to regulated markets across Europe. As it permits reporting under national Generally Accepted Accounting Principles (GAAP), it offers an alternative for issuers not wishing to prepare financial information to International Financial Reporting Standards (IFRS).
The London Stock Exchange also operates the Order Book for Retail Bonds, which is an electronic trading platform for debt securities that are issued in denominations of less than £100,000 and listed on the Main Market.
United Arab Emirates
In the UAE, there are three main exchanges:
Dubai Financial Market (DFM)
DFM was created in 2000 and operates as a secondary market for the trading of securities issued by public shareholding companies, bonds issued by federal or local governments, local public institutions and mutual funds as well as other local or foreign DFM approved financial instruments. DFM is governed and regulated by the Securities and Commodities Authority (SCA). In 2010, DFM consolidated its operations with NASDAQ Dubai, which means investors can trade across the two exchanges. However, both exchanges are regulated separately, DFM by the SCA and NASDAQ Dubai by the Dubai Financial Services Authority (DFSA).
Abu Dhabi Securities Exchange (ADX)
ADX was also established in 2000 and operates as a secondary market for the trading of different types of securities. It currently has trading locations in Al Ain and in the Emirates of Fujairah, Sharjah and Ras Al-Khaimah. ADX is governed and regulated by the SCA.
NASDAQ Dubai
NASDAQ Dubai was created in 2005 and is based in the Dubai International Finance Centre (DIFC) which has an independent commercial legal system based largely on English law. The exchange is regulated by the DFSA. There is also a greater emphasis on a regional (and global) role for NASDAQ Dubai by contrast to the domestic focus of DFM and ADX.
United States
Debt securities in the US are not typically exchange listed, however all of the major exchanges including the New York Stock Exchange and NASDAQ permit the listing of debt securities.
Are there any restrictions on establishing a fund?
No.
What are common fund structures?
Securities investment funds
Real Estate investment funds
Venture Capital investment funds
What are the differences between offering fund securities to professional / institutional or other investors?
Investment funds may be set up exclusively for institutional investors. In that case the Fund rules shall be explicit about the exclusive participation of institutional investors. A Fund intended exclusively for institutional investors may establish different rules compared to other funds, in particular establishing different time limits for ascertaining the value of the unit and payment of redemption, charge a management fee on the basis of the results of the Fund or dispense with the preparation of a half-yearly report.
Are there any other notable risks or issues around establishing and investing in funds?
No.
Are there any restrictions on marketing a fund?
The establishment of an investment fund is subject to prior authorization by the CMC.
Authorization requires approval by the CMC of the incorporation documents, the choice of depositary and the management entity's request to manage the Fund.
Are there any restrictions on managing a fund?
The management of Investment Funds may only be exercised by fund management entities empowered by law and registered with the CMC.
Fund management entities must maintain their business organization equipped with the human, material and technical resources necessary to provide their services under appropriate conditions of quality, professionalism and efficiency, in order to avoid wrong procedures.
Real Estate Fund Management entities must also maintain a technical department qualified to provide real estate project analysis and monitoring services or to contract such services externally.
Are there any restrictions on entering into derivatives contracts?
No.
What are common types of derivatives?
- Swaps
- Options
- Futures
Are there any other notable risks or issues around entering into derivatives contracts?
No.

Luís Filipe Carvalho
Partner
DLA Piper Africa, Angola (ADCA)
[email protected]
T +244 926 612 525
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