Vienna Stock Exchange corporate bond listings

Private corporations from most jurisdictions are eligible to issue and then list their bonds on the Third Market of the Vienna Stock Exchange under simplified rules and conditions.

Under the EUs MiFID regulations aimed at encouraging competition within capital markets, the EU allowed for the creation of Multilateral Trading Facilities (MTF) which have been described as a form of “lite exchange” because they provide similar or competing trading services, such as rulebooks and market surveillance departments, but operate through simplified procedures and at very competitive fees than what it would cost to list financial instruments (shares, bonds, funds) on the traditional stock market segments.

The MTF Markets of Vienna Stock Exchange is operated by the regulated Vienna Stock Exchange. In Vienna they also refer to the MTF Market as the Third Market but trading in bonds goes through the same clearing and settlement structure.

The biggest advantages for listing in MTF Markets are:

-          - There is no need to submit prospectus. Listing is done through simplified method.

-          - There is no maximum ownership rule.

-          - The concept of using nominees is legally allowed.

-          - There is no minimum volume rule. This means even if for the whole year there is no volume traded on the financial instruments, this is acceptable.

-          - Startups without prior history can list their financial instruments.

-         -  Listing is secured on average in 2 weeks.

-         -  Listing costs are significantly lower.

-          - The level of reporting after listing is negligible.

-          - Trading in the financial instruments is done via brokers.

The Vienna Stock Exchange allows for most types of bond listings including traditional bonds with fixed coupon, floating rates, zero coupon bonds as well as performance linked bonds, whose value is tied to the performance of the underlying asset.

One of the key advantages of listing on the Third Market or MTF of Vienna Stock Exchange is that the Exchange accepts all documentation in English.

Once the listing has commenced and an ISIN secured, an Issuer may continue to privately place additional bonds and then following a simple process, add-on to the existing issue, subject to Vienna Stock Exchange approval.

An issuer would need an EU-based regulated investment firm (Eurivex Ltd. – www.eurivex.com) to act as the Investment firm signing the application and also appoint a Payment Agent in addition to completing the other documentation.   

Eurivex, a regulated by CySEC investment firm, specializes in listings on the MTF Markets of both the Vienna Stock Exchange and the Cyprus Stock Exchange and has the expertise to provide complete packages.