The stock exchanges in London and Luxembourg have struck
back in their battle with non-EU exchanges over who will
dominate Eurobond listings once the EU's Prospectus Directive
takes effect on July 1.
Last month, each unveiled its strategy to deal with
competition from rival exchanges, several of which aim to
attract non-EU issuers by offering them a chance to avoid the
demands imposed by new EU regulation.
Both London and Luxembourg propose to sidestep the parts of
the Prospectus Directive that are unappealing to issuers but
are taking different views on how to do so. Who has the winning
approach is so far unclear.
The stakes are high, with many issuers intent on avoiding
the Prospectus Directive and its requirement for an expensive
retail-style prospectus for all bond deals with denominations
of less than €5,000. At the same time, the EU's
Transparency Directive will, from 2006, require even foreign
issuers to report under international accounting...