Listing Of Specialised Debt On The ISE

Author:Mr Conor Houlihan, James Richards and Tara O'Callaghan
Profession:Dillon Eustace

The Irish Stock Exchange

The Irish Stock Exchange ("ISE") is a leading global exchange for the listing of a range of debt securities, including asset backed, structured finance, high yield bonds, MTNs, derivatives, commercial paper, covered and convertible bonds and global depository notes. The ISE operates two markets for debt securities, the Main Securities Market ("MSM") and the Global Exchange Market ("GEM").

The MSM of the ISE is an EU Regulated Market as defined under the Markets in Financial Instruments (Directive 2004/39/EC) ("MiFID"). It is the pre-eminent market for the listing of structured bonds, representing approximately 80% of asset backed security issues seeking a listing in Europe. Only issuers who have had a prospectus approved by the Central Bank subject to the Prospectus (Directive 2003/71/EC) Regulations 2005 (the "Prospectus Regulations") are eligible to be admitted to trading on the MSM.

The GEM is an exchange-regulated market and Multi Trading Facility ("MTF") as defined under MiFID, operated under the supervision of the ISE. As an exchange regulated market it provides more flexibility than an EU Regulated Market such as the MSM. GEM is aimed at professional investors. Securities listed on GEM have the ability to trade via the ISE's trading platform, ISE Xetra®.

Why List?

Distribution - Increased distribution lines to institutional investors which are required to hold a significant proportion of their investments in listed securities. Withholding tax - A listing on GEM or MSM can facilitate that interest be paid without any withholding tax by relying on the "quoted Eurobond" exemption. A "quoted Eurobond" is defined in the tax legislation as a security which is quoted on a recognised stock exchange and carries a right to interest. Liquidity - Increased liquidity of an issue. Status - Increased status and credibility of the securities on a recognised EU/OECD exchange. Marketable assets - Both the MSM and GEM markets are approved by the ECB as "acceptable markets" under the Eurosystem monetary policy, a key requirement in the classification of securities as "marketable assets". Marketable assets can be pledged as collateral by eligible counterparties and credit institutions to gain access to the Eurosytems liquidity and to intraday credit. Why The ISE?

Flexibility and Approachability - The ISE will accommodate no names queries. Readers are accessible to arrangers where necessary for direct discussion. Omission...

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