Pan-European exchange operator Euronext and the Luxembourg Stock Exchange have signed an agreement to share trading and listing technology and cooperate on developing the corporate bond market.
Under the agreement, which is subject to regulatory approval, the pan-European exchange will set up a 50/50 joint venture with the Luxembourg exchange that will "define and co-ordinate marketing initiatives promoting the new European standards" for the listing and trading of corporate bonds. The joint venture will be based in Luxembourg.
Euronext will also adopt the tools used by the Luxembourg Stock Exchange for listing corporate bonds. Euronext says issuers in Luxembourg will be able to use an e-file portal to track issues through each stage of the listing process.
The agreement also provides for all products listed on the Luxembourg Stock Exchange's cash market to be made available on the Euronext trading system.
Commenting on the alliance, Jean-François Théodore, chairman of the managing board and CEO of Euronext, says: "We welcome this agreement with the Luxembourg Stock Exchange, which will make it possible to trade all cash products listed on the Luxembourg Exchange on NSC, the pan-European platform for securities trading, and establish special links in corporate bonds, an area where the Luxembourg Stock Exchange is particularly well-placed."