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.
