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.

Is there a difference between a forex trader and a gambler?

By Yervant Bohdjalian

Having been in the forex business since 1983, first as a forex trader and now as CEO of a regulated Cyprus Investment Firm licensed to offer forex trading to customers through an MT4 electronic trading platform, many people ask me to explain to them the difference between a forex trader and a gambler.

The only common factor between a forex trader and a gambler is that both are looking to make money from the forex market. But other than this, they operate in totally different ways since the trader usually takes calculated risk when entering a position whereas the gambler takes random risks with a 50:50 chance of success or failure and risking all the money.

The experienced forex trader will have the following characteristics when trading in the forex market:

* Has adequate capital to trade without using excessive gearing, which in ideal conditions should not exceed 20:1 leverage.
* Uses a Money Management system, whereby the size of the position opened depends on how much he is allowed to risk or lose.
* Based on a predetermined risk profile, he knows how much a trade will make, lose even before the trade is actually opened. When a position is opened, the trader automatically will post the take profit, stop loss orders or adjust them very slightly during trading time.

*Attempts to combine the fundamental developments with technical analysis tools but does not become sentimental.

The gambler on the other hand usually has the following characteristics when trading in the forex market:
* Most of the time is under capitalized, uses excessive leverage to achieve over-ambitious profit objectives.
* Has no risk management or money management strategies.
* Does not follow a set of rules, but engages in random trading ideas and believes the odds in the forex market are better than an online casino.
* Does not learn from past mistakes, always blames others when a trade goes sour.

At Eurivex, a Cyprus Investment Firm regulated by Cyprus Securities & Exchange Commission (CySEC 114/10) licensed to offer forex through its own MT4 trading platform, as well as licensed to offer portfolio management services and hold client funds, the strategy is to rely on expert help from industry professionals and combine this with the firm’s internal systems developed over years with a close eye on the newswires for developments affecting the currency markets.

The Eurivex Managed Forex Accounts management model is based on purely systematic approach to trade selection and trade management whereby all entry, exit, take profit and stop loss points are known before a trade is initiated.

Eurivex follows a pattern recognition model designed by a major Swiss bank, aimed at capitalizing on the false breaks which are so common in forex market, but also take advantage of a major trend unfolding, after a major resistance or support point is violated and thereafter the market does not return back to the pivot point.

The Eurivex Managed Forex Accounts management model is applied to EUR/USD, GBP/USD, AUDUSD and EUR/JPY forex pairs since we believe that over-extending the markets under watch may mean missed opportunities. Eurivex also attempts to stay only in markets where most activity occurs during European time, when Eurivex fund managers are at their station desks and following market developments closely and because the above currencies are the most liquid.

(Yervant Bohdjalian (yervant@eurivex.com) is a certified Portfolio Fund Manager and Executive Director of Eurivex Ltd. (www.eurivex.com) a Cyprus Investment Firm, authorized and regulated by CySEC, license #114/10 with expertise in managed forex accounts. The views expressed above are personal and do not bind the company and are subject to change without notice. The comments mentioned above are not to be considered as an offer to subscribe, invest or benefit from an investment scheme, nor are to be considered as advice for trading in markets. The comments are for information purposes only and are general in nature. The examples will vary and depend on individual circumstances. Trading on margin and leverage is risky and may result in losses. Past performance is no guarantee for future performance.)

Managed forex accounts gain in importance

Most investors prefer forex fund management

The majority of forex traders prefer managed forex accounts as opposed to opening a retail account under their own management since many do not have the time, expertise and knowhow to trade forex and prefer a professional fund manager to manage their forex accounts.

Eurivex, a Cyprus Investment Firm regulated by Cyprus Securities & Exchange Commission (CySEC 114/10) licensed to trade in shares, bonds and in forex through its own MT4 trading platform, as well as licensed to offer portfolio management services and hold client funds, the strategy is to rely on expert help from industry professionals.

In sharp contrast to other firms, Eurivex does not charge an asset management fee for Forex Managed accounts which typically amounts to 2% of the portfolio size. Instead, Eurivex applies the industry standard 20% performance fee on positive performance at the end of the period on all Managed Forex Accounts.

Eurivex also does not impose any conditions on Managed Forex Accounts. Clients are free to withdraw their funds any time they wish, provided they give us ample warning, usually 48 hours notice, to allow our asset management team to close any open positions.

The Eurivex Managed Forex Accounts management model is based on purely systematic approach to trade selection and trade management whereby all entry, exit, take profit and stop loss points are known before a trade is initiated.

Trading systems fall into several strategies. The most widely used model is “trend following” based on the trusted saying that a “trend is your best friend”. Trend following perform extremely well when markets are trending, that is moving in one direction over a period of time. Others follow the “range trading” model which aims to make profit when markets are moving sideways or consolidating after a major move.

The trend following models usually lose a lot when markets move sideways as they keep entering and exiting on stops as the market makes false breaks but moves back to the pivot point.

Eurivex follows a pattern recognition model designed by a major Swiss bank, aimed at capitalizing on the false breaks which are so common in forex market, but also take advantage of a major trend unfolding, after a major resistance or support point is violated and thereafter the market does not return back to the pivot point.

The Eurivex Managed Forex Accounts management model is applied to EUR/USD, GBP/USD and EUR/JPY forex pairs since we believe that over-extending the markets under watch may mean missed opportunities. Eurivex also attempts to stay only in markets where most activity occurs during European time, when Eurivex fund managers are at their station desks and following market developments closely and because the above currencies are the most liquid.

www.eurivex.com

yervant@eurivex.com

(Yervant Bohdjalian is a certified Portfolio Fund Manager and Executive Director of Eurivex Ltd., a Cyprus Investment Firm, authorized and regulated by CySEC, license #114/10 with expertise in managed forex accounts. The views expressed above are personal and do not bind the company and are subject to change without notice. The comments mentioned above are not to be considered as an offer to subscribe, invest or benefit from an investment scheme, nor are to be considered as advice for trading in markets. The comments are for information purposes only and are general in nature. The examples will vary and depend on individual circumstances. Trading on margin and leverage is risky and may result in losses. Past performance is no guarantee for future performance.)