With close to 30,000 listed debt securities, the Luxembourg Stock Exchange is one of the world’s leading listing venues for international financial securities. Boerse Stuttgart in cooperation with its liquidity provider EUWAX AG, on the other hand, is the German market leader for exchange-based trading in corporate bonds, and the leading European exchange for securitised derivatives trading.

LuxXPrime combines the listing tradition of the Luxembourg Stock Exchange and the trading expertise of EUWAX AG and Boerse Stuttgart, leveraging the respective strengths of two well-established exchange institutions.

“LuxXPrime is a highly strategic initiative. By bridging our extensive bond universe and our stable and secure trading platform with the pricing capabilities and trading experience offered by EUWAX AG, we are providing more efficient and competitive investment opportunities to professional and private investors,” stated Robert Scharfe, CEO of the Luxembourg Stock Exchange.

Joining forces to boost trading

To ensure high levels of liquidity on its new trading window, LuxSE has teamed up with the Stuttgart-based financial services firm EUWAX AG, which is a subsidiary of Boerse Stuttgart and one of the leading liquidity providers in the German market.

As the prime liquidity provider of LuxXPrime, EUWAX AG’s role is to facilitate trades by acting as a possible counterparty for buyers and sellers of the securities included in the LuxXPrime selection. By quoting two-way prices and ensuring a high presence in the order book, EUWAX AG allows investors to execute their orders on LuxSE at their own convenience. As an additional benefit for investors, all prices quoted on LuxXPrime are firm prices, meaning that the liquidity provider is obliged to execute the order at the published price.

“By ensuring price quality and high probability of execution for investors, we contribute our core expertise to LuxXPrime and join forces with Luxembourg Stock Exchange as one of the world’s leading listing venues. We are very happy that EUWAX AG can act as a liquidity provider for the first time outside the trading venues of Boerse Stuttgart Group, thus establishing cross-border services that bring European financial markets closer together,” explained Alexander Höptner, CEO of EUWAX AG.

Its role at LuxXPrime fits into EUWAX AG’s strategy to extend its trading services as a liquidity provider to international trading venues. In this field, EUWAX AG strengthens its competence and infrastructure, in order to increase trading volumes and to raise synergies.

Green bonds included

In a first phase, the new trading window on LuxSE’s trading platform counts 260 carefully selected and liquid bonds — representing 71 issuers from 9 countries — and includes 12 green bonds. The majority of the 260 bonds are corporate bonds. With LuxXPrime, LuxSE sets out to meet the needs of brokers, asset managers and investors who are looking for attractive prices for smaller-sized trades in fixed-income securities.

The LuxXPrime selection of bonds will increase in the coming months. Moreover, LuxSE and EUWAX AG are preparing the ground to include other financial securities, such as Exchange-Traded Funds.

Beyond listing

While the Luxembourg Stock Exchange is an established listing venue for international financial securities, LuxXPrime is part of the exchange’s efforts to boost its trading activity and gain market share in its core markets across the Benelux region, France and Italy.

In 2016, LuxSE launched the Luxembourg Green Exchange (LGX). Today, LGX has a 50% market share of listed green, social and sustainability bonds worldwide. In an effort to facilitate and mainstream the trading of these bonds, 12 green bonds are readily available for trading on LuxXPrime.

LuxSE is a regulated exchange, operating a stable, secure and transparent trading platform, and only registered trading members can trade on its markets. Investors around the world can however easily place orders via LuxSE’s existing trading members.

To learn more about LuxSE’s new trading window LuxXPrime, to search the list of bonds and calculate their respective yield, visit the dedicated, brand new website at www.luxxprime.com.