Welcome to the LuxXPrime Newsletter!

Welcome to this year's second edition of the LuxXPrime newsletter! As we continue to grow our LuxXPrime selection of securities, we bring you the latest statistics, insights from industry experts on where the market is heading and a glimpse of the underlying investment projects of sustainable securities available for trading on LuxXPrime.

So, as we enter the last quarter of the year, let's talk about the latest news and developments on all things trading.

LuxXPrime is a window on the trading platform of the Luxembourg Stock Exchange (LuxSE), dedicated to retail-sized bond trading, and was launched in September 2019. What started off as a limited selection of 230+ securities has now expanded and counts more than 1,350 securities, including 300+ green, social and sustainability bonds. 

To secure firm prices, competitive spreads and liquidity on LuxXPrime, LuxSE teamed up with EUWAX AG, a subsidiary of Börse Stuttgart, which acts as the Prime Liquidity Provider. In this way, LuxXPrime meets the needs of brokers, asset managers and investors who are looking for attractive prices for smaller-sized trades in fixed-income securities.

The implementation of our new post-trade setup, revamped and simplified to allow for a stronger market infrastructure and a smoother experience for our trading members, is progressing steadily. The testing phase started this week, with the go-live date scheduled for October, so stay tuned!

As revealed in our previous newsletter, while the Guarantee model with LCH Clearnet SA will remain unchanged, we will be replacing our pass-through model – which is currently managed by LCH Clearnet SA and includes over 21,500 tradable instruments – in the last quarter of the year.

Our new business partner, the Italian BFF Bank, will provide an alternative solution to replace the current pass-through channel with a new, straight-through process resulting in a number of benefits for LuxSE trading members including:

As part of a more transparent process, LuxSE will supply a daily trade file with all information needed for the reconciliation and the indication of the counterparty, the settlement date and settlement amount (in case of bonds).

The new post-trade service will send gross settlement instructions for all trades done on the new STP Channel trading groups to all members directly on their settlement account or their settlement agent account on the ICSDs.

Thanks to BFF Bank, LuxSE will offer a new electronic channel to send to ICSDs settlement instructions in a fast, integrated and safe way. The LuxSE fee schedule will not be affected by any of these changes.

We are pleased to announce that this year, a new partnership will see the light between LuxSE and the leading financial newspaper in Italy, Il Sole 24 Ore. 

As part of the partnership, which will go live in Q4, Il Sole 24 Ore will feature a section dedicated to the Luxembourg Stock Exchange on its website featuring LuxXPrime market data prices and instruments. This will help us increase market transparency by providing Il Sole 24 Ore's readers with access to delayed market data free of charge, while also giving us the opportunity to promote and grow visibility around instruments that are traded on LuxSE.

Banca Popolare dell'Emilia Romagna's Luxembourg branch (BPER Bank Luxembourg S.A.) has officially joined LuxSE as a new trading member!

Established in February 1996, BPER Bank Luxembourg S.A. is a fully licensed bank and a wholly owned subsidiary of BPER Banca Spa, Modena, one of the most prominent and largest retail banks in Italy.

BPER Bank Luxembourg S.A.'s trading membership will enable retail and institutional clients to execute transactions in shares, bonds, warrants, and certificates listed at LuxSE. This will in particular benefit the bank's institutional, professional, and retail clients in the Benelux region. 

BPER Bank Luxembourg S.A. is set to start its trading activity later this month.

353 issuers
42 countries
11 currencies

1.  XS1271836600   EUR   VW International Finance   3,5%    Perpetual

2. US900123BB58   EUR   VW International Finance   5,125%   Perpetual

3.  XS1075219763   USD   Turkey   6,875%   17/03/2023

Along with our overview of top traded debt securities from some of the world's leading issuers, LuxXPrime provides real-time information on our Most Viewed and Last Traded securities. Keeping your finger on the pulse of retail-sized trading has never been easier!

On 20 September 2022, LuxSE will be hosting a networking reception in Milan, Italy. Held at the Banco BPM premises, this reception will bring together LuxSE's top executives as well as decision makers from across the Italian financial industry, including H.E. Michèle Pranchère-Tomassini, Ambassador of Luxembourg to Italy, San Marino, Malta and Croatia; Fabio Massoli, CFO, Cassa Depositi e Prestiti (CDP); Professor Carlo Altomonte, Associate Professor of Economics of European Integration, Bocconi University and Marco Turrina, Vice-President, Assosim. The LuxSE delegation will be made up of:

This reception will serve as an opportunity to build on the longstanding relationship between our exchange and the Italian market - one that dates all the way back to 1963 and the very first Eurobond, issued by Autostrade and listed on LuxSE.

LuxSE is a proud sponsor of the Fixed Income Leaders Summit (FILS) taking place at the Nice Acropolis in Nice, France from 4 to 6 October. FILS is one of the leading Fixed Income conferences held annually in EMEA - a place to meet relevant market participants in a setting fit for constructive discussions and prime networking.

If you are planning on joining the event and would like to connect with our team on the ground to discuss LuxXPrime and the Luxembourg Green Exchange (LGX), please contact our Markets & Surveillance team or drop by our booth!

The Luxembourg Stock Exchange is the world’s leading listing venue for sustainable securities. In this series, we zoom in on one of the sustainable projects that are financed by securities available for trading on LuxXPrime.

In this sixth edition, we are featuring a green bond issued by the Asian Development Bank. 

The EUR 600 million bond, which was issued in July 2018, will help finance electric buses accessible for disabled and elderly passengers as well as women with children in Bishkek, the capital of the Kyrgyz Republic. 

The project will also upgrade the infrastructure of two trolleybus depots and establish a 3.5 km green mobility pilot corridor to increase bus speed and improve the service reliability of public transport in Bishkek city center.

Aligned with the Asian Development Bank's strategy, the project will help the government of Kyrgyzstan implement its 2040 National Development Strategy, which declared the transition to environmentally-friendly modes of transport one of its top policy priorities.

It is important for the Luxembourg Stock Exchange to provide investors with a clear and transparent view of the trading quality and market conditions that LuxXPrime offers to bond traders. For this reason, LuxXPrime, with the help of our Prime Liquidity Provider - EUWAX AG, publishes the performance reports of its Prime Liquidity Provider (PLP) on a monthly basis.

To view the report in full, as well as PLP Performance Reports from previous months, visit our statistics page.