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IRELAND The Irish Stock Exchange Limited 28 Anglesea Street Dublin 2  Ireland Tel: +353 (1) 617 4200  Fax: +353 (1) 677 6045 www.ise.ie

The Irish Stock Exchange dates back to 1793 when trading first began in Dublin.
The Irish Stock Exchange is a key element of the financial infrastructure of Ireland. Currently over 1450 securities are listed on the Exchange with the most significant volumes of trading in the equities and Government bond markets. 

The Exchange operates in the Euro zone, the single currency block comprised of eleven European states resulting from European Monetary Union. Since 4 January 1999 all trading in equities, bonds and other securities on the Irish Stock Exchange, which was previously conducted in Irish pounds, is now in Euros. Securities denominated in US dollars and sterling are also traded on the Exchange.

The Irish Stock Exchange Limited is a company limited by guarantee under the Irish Companies Acts. The Exchange has a board of eleven directors, comprised of an independent chairman, three co-opted directors representative of wider market interests, and seven directors elected by member firms.

The Irish Stock Exchange has three markets: the main market, the Official List; the Developing Companies Market (DCM); and the Exploration Securities Market (ESM). 

The market in Irish Government bonds is also regulated by the Exchange. The National Treasury Management Agency is the body responsible for issuing new Government debt instruments and for managing the existing portfolio of such debt.

In September 2000, The Irish Stock Exchange launched ITEQ, a new dedicated market for technology stocks. 

Structure - Stockbrokers

Only member firms of the Irish Stock Exchange are permitted to buy and sell quoted securities directly on the Exchange. Membership is available to corporate entities or to partnerships, which fulfil all the requirements of the Exchange's rules. These include:

• authorisation of the firm by the Central Bank of Ireland, or recognition by the Central Bank of an authorisation granted by another European Union supervisory authority;
• an appropriate business profile and experience of stockbroking;
• clearly defined procedures for ensuring the best interests of investors;
• clearly defined procedures for ensuring the best interests of investors;
• strong systems of internal control and compliance; as well as 
• establishing the fitness and probity of the individuals involved in the firm, including its directors and controllers.

Types of Issue

The securities listed on the Exchange are of six basic types: 

• Domestic Irish equities - Ordinary shares issued by Irish companies. 
• Overseas equities - Ordinary shares issued by non-Irish companies. 
• Irish Government Bonds - Securities issued by the Irish government to meet its Exchequer borrowing requirements. They entitle the owner to regular interest payments and the repayment of the underlying capital sum at a given date in the future 
• Bonds or fixed interest stocks - Usually issued by companies or local authorities. 
• UCITS & Investment Funds - Collective investment schemes that are established to passively invest in a portfolio of investments on the basis of spreading risk. The Investment Funds are both Irish and non-Irish domiciled and may take a number of legal forms or investment structures. 
• Specialist Securities - Securities which because of their nature, are normally bought or traded by a limited number of investors who are particularly knowledgeable in investment matters.Securities which are listed include: Asset Backed Debt, Eurobonds, Medium Term Notes and Warrants

The settlement system used for Irish equities is Crest. The Crest settlement system has been in operation since July 1996 and is managed by CrestCo, an independent company. Member firms are directly linked to Crest which operates rolling settlement on the underlying principle of guaranteed 'Delivery versus Payment' (DVP) this means that settlement only happens when a security's delivery is matched with payment. Crest is also used to settle deals done on the London Exchange in United Kingdom securities. Irish Government bonds are settled by the Central Bank of Ireland Securities Settlement Office (CBISSO).
 

LUXEMBOURG The Luxembourg Stock Exchange Tel : (352) 47 79 36 - 1  Fax: (352) 47 32 98  e-mail info@bourse.lu www.bourse.lu

A law concerning the creation of a trading exchange dates from December 1927. In April 1928 the Stock Exchange, the Societe Anonyme de la Bourse de Luxembourg, was incorporated. The first session of the Stock Exchange took place on 6 May 1929.
Currently over 3,600 issuers from about 90 different countries constitute the official list. The Luxembourg Stock Exchange trades equities, bonds, undertakings for collective investments i.e. funds, and warrants. 18,000 Eurobonds are listed on the Exchange - more than two-thirds of the total issued. The Exchange supplies data feeds to Bloomberg, Bridge, Datastream, Reuters and Telekurs.

Regulatory Basis

Current issuance and listing procedures were laid down in a Grand-Ducal regulation of 28th December 1990, with some subsequent amendments. Luxembourg listing regulations conform to the EU Listings Directive. Supervision of the Stock Exchange and trading markets is in the hands of the Commission for the Supervision of the Financial Sector under the law of 23rd December 1998. 

Trading and Settlement

Trading is fully electronic and decentralized. Since 2 January 1996 all the Luxembourg-listed securities have been traded on the Multi-Fixing (MFX) segment of the Automated Trading System SAM. The securities are distributed over a number of fixing groups called in sequence within a fixed time schedule. On completion of the call the prices are validated and the generated trades are confirmed immediately to the market participants. 

The Exchange launched its quote-driven 'On-Demand Continuous Market' (MCD) in 1997, and in 1998 began a dialogue and cross-exchange membership programme with the Amsterdam and Brussels exchanges. The long-term intention is to join the Paneuropean Exchange project.
 

MALTA Malta Stock Exchange  27 Pietro Floriani Street Floriana VLT 14 Malta Tel: (356) 244051/5 Fax: (356) 244071 E-mail: borza@borzamalta.com.mt www.borzamalta.com.mt

The Malta Stock Exchange Act 1990 led to the opening of a stock exchange towards the end of 1992. Management of the exchange is in the hands of a Council, headed by the Chairman. The Council is responsible for approval of applications for listing and for supervising performance of the ongoing obligations of listed companies. Prospectus and listing requirements are in line with EU standards. Trading on the Exchange, which had a rather slow start, was on a weekly basis until 1998, when the listing of Maltacom led to daily trading. Trading turnover on the exchange amounted to Lm135m in 1998, and had already exceeded that amount by October 1999. Capitalisation of the exchange (excluding mutual funds) reached Lm1bn early in 1999.

The Exchange is careful to monitor activity for possible money-laundering, and submitted itself to inspection by the Financial Action Task Force in 1998, with positive results.

Regulatory Basis Including Listing Rules

An applicant for listing on the Malta Stock Exchange must appoint a Stockbroker to sponsor its application. The sponsor must ensure that the Council of the Stock Exchange is provided with all the required information and the sponsor is responsible for lodging with the Stock Exchange all the documents required in support of the application. 

The listing process offers an opportunity to take a good look at the company and perhaps make some adaptations so that maximum benefit of listing may be achieved. The application may seem long and tedious but, if done properly, it is going to be done once and the company comes to the market in a proper fashion. This will set the foundation of what one hopes will be a successful listing. 

The Listing Particulars Document is a factual document which has to be prepared in order to give full information about the company and what the company does and how successful the company has been. 

The Accountants Report is an essential part of a listing procedure and it has to be produced to enable the public to decide whether or not to invest in the company. The detailed information will enable the general body of investors to make a fair assessment. A three year trading record has to be presented to give a true and fair view of the performance of the company and the profit forecast has to include a comment on the underlying assumptions that they are at least reasonable. 

Basic Requirements For A Listing:

• Shareholders funds less intangibles of at least Lm250,000; 
• Paid-up Capital of at least Lm100,000; 
• Twenty percent of the issued, fully paid-up capital in the hand of the general public; 
• Three year trading record; 
• Flotation limit of at least Lm100,000; 
• Adequate profit forecast; 
• Shares must be freely transferable; 
• Financial information in compliance with Investment Services Act; 
• Acceptable level of risk attached; 
• Adequate capital; 
• Sufficient management resources; 
• Suitable Memorandum and Articles of Association; 
• Absence of conflict of interest; and 
• Expected to enjoy continuity of dealing. 

There are nine equity listings and five corporate bonds listed on the Exchange, along with some Maltese Government stocks. The exchange has, however, been quite successful with mutual fund listings, with about 120 funds being listed from names such as Fidelity and HSBC
 

MAURITIUS Stock Exchange of Mauritius 2nd Floor, Les Cascades Building 33 Bis, Edith Cavell St Port Louis Mauritius Tel: +230-212-9541/2/3 Fax: +230-208-8409

The Stock Exchange Act 1988 established a small but thriving exchange which is run by the Stock Exchange of Mauritius Ltd (SEM), a private limited company. The Act also established the Stock Exchange Commission (SEC), which controls and supervises stock exchange operations. Two markets are operated: the Official List and the Over-The-Counter Market (for unlisted shares). There are around 40 companies listed on the Official List, and around eighty companies quoted in the Over-The-Counter Market. 10 companies are quoted for their debentures. The Stock Exchange has classified these companies into 7 categories - namely Banks and Insurance, Industry, Investments, Sugar, Commerce, Leisure & Hotels and Transport. There are also 2 dual listed funds quoted both on the London Stock Exchange and the Stock Exchange of Mauritius. 
The SEMDEX - the all shares index - reflects capitalisation based on each listed stock which is weighted according to its shares in the total market. In its computation, the current value of SEMDEX is expressed in relation to a base period, which was chosen as of July 5 1989, with an index value of 100. 
The market capitalization of the Stock Exchange of Mauritius at the end of 1999 was US$ 1.64 billion (excluding debentures).

Qualifications For Listing

To be listed on the Stock Exchange of Mauritius, a public company requires an 'adequate' trading record with published accounts for three years preceding listing. A minimum market capitalization of Rs 20 million and the issue of at least 25 per cent of the share to the public, with a minimum of 200 shareholders, is also required. Companies are obliged to issue at least 15% of their shares initially, increasing this proportion to 20% within three years and 25% by the end of five years. 

A listed company must:

• Be established either in Mauritius or in another acceptable jurisdiction 
• Pay the initial and annual fee as prescribed by the Exchange 
• Submit legal, financial, and economic documentation in accordance with the regulations 

All listing applications must be sent to the Stock Exchange of Mauritius through a stockbroking company. The applications are then forwarded to an independent Listing Committee. Under the recommendation of the Committee, the Stock Exchange of Mauritius, with the approval of the regulatory body, accepts the applications. 

Every stockbroking company holds a license granted by the Minister of Finance on the recommendation of the Stock Exchange Commission, and is a member of the Stock Exchange of Mauritius Ltd. All stockbrokers are required to abide to a Code of Conduct and to adhere to the Rules of the Stock Exchange.

Stockbroking companies are required to have at least two duly licensed stockbrokers who have satisfied minimum entry requirements and passed the prescribed stockbrokers examination. 
Stockbroking companies are required to maintain a minimum paid up capital of Rs 500,000 and every stockbroker must furnish a personal guarantee to the amount of Rs 250,000. 

Eleven stockbroking companies are currently operating on the Stock Exchange, with a total of about thirty stockbrokers. A number of stockbroking companies operate in association with foreign partners. SBCs and stockbrokers pay an annual license fee of RS 2,000 and 1,000 respectively to the Stock Exchange Commission, and are required to have their licenses renewed annually. 

Trading and Settlement

Trading takes place five days a week and is conducted through an open outcry, order-driven and single-price auction system. Each share (excluding foreign shares) has a maximum +/- 6% price limit per trading session. 

The exchange has established a new electronic clearing and settlement system and the introduction of daily trading (at the end of 1997). Future planned developments include the introduction of a new electronic trading system and the listing of new financial products on the stock market. 

A major development in 1998 was the implementation of a Central Depository System, in which all listed companies are registered. This system allows delivery versus payment (DVP) on a T+5 day rotating basis. The establishment of a clearinghouse, through the Bank of Mauritius, provides for a guarantee fund, which incorporates measures for securities and fund settlement failure. The Stock Exchange in collaboration with international advisers has also drafted new listing and reporting rules to ensure greater transparency for investors.
 
 
 

PANAMA Panama Stock Exchange  Calle Elvira Mendez y Calle 52, Edif. Vallarino, Planta Baja Postal Code: 87-0878 Republic of Panama  Tel: (507)269-1966 Fax: (507)269-2457  bvp@pty.com

Since its creation in 1990, the Panama Stock Exchange has been an important part of the development of Panama's role as a regional financial centre. Most transactions centre on government bonds. The exchange is the only dollar-based securities market in the region. The main corporate candidates for listing are the many companies of Central America and the northern countries of South America that have strong balance sheets but are too small to issue shares in New York. 

Listing Rules

Companies must obtain the authorization of Panama's National Securities Commission to sell or underwrite an initial public offering of securities. Companies must also apply to have securities listed on the Panama Stock Exchange. 

To obtain the Securities Commission's authorization, companies must file through an attorney with the Commission and the Stock Exchange. The main filing requirements are: 

• The articles of incorporation and by-laws of the company, which must be registered with the National Public Registry. 
• Certification from the National Public Registry of the names of the company's directors and legal representative, the authorized share capital and the term of the maturity of the company. 
• A prospectus or selling memorandum in compliance with the rules and regulations of the National Securities Commission. 

• An information memorandum describing details of the issue, which must comply with the rules and regulations of Panama's securities commission and the exchange. 
• Copies of the most recent financial statement, which may be no more than 120 days prior to the application date, and statements for the past three fiscal years. Statements must be audited by an independent certified public accountant and comply with generally accepted accounting principles. 
• The issuer or agent who requests the listing on the Panama Stock Exchange must appoint a legal agent with full power of attorney to permanently represent the issuer in Panama. 

Cost Of Listing

Registration with the National Securities Commission in Panama is free. The Panama Stock Exchange registration fee is $250, plus an annual maintenance fee of $100.
 

SWITZERLAND SWX Swiss Exchange Selnaustrasse 30 Postfach CH-8021 Zurich Tel: +41 1 229 21 11 Fax: +41 1 229 22 33 Email: swx@swx.com www.swx.com

Measured in terms of turnover, the SWX Swiss Exchange is the third largest exchange in Europe and the sixth largest securities trading centre in the world. Switzerland's three regional stock exchanges in Geneva, Basle and Zurich merged to form SWX in 1995. It is one of Europe's leading markets for blue chips and occupies a pole position worldwide in warrants trading. Some 3500 securities are admitted for trading on SWX. 

From a legal point of view, the SWX Swiss Exchange is an association with over 60 members, a quarter of which are foreign institutions.

Types of Issue

Stocks, bonds and warrants are traded on the SWX Swiss Exchange. Since July 1998, SWX has also provided facilities for electronic trading in Eurobonds. Latterly, it has introduced Exchange Traded Funds (ETFs). One of the best-known SWX products is the SwissIndex family of securities market indicators. It comprises the Swiss Market Index (SMI), which is made up of the most important Swiss stocks and represents 80% of total market capitalization in Switzerland; the broader-based Swiss Performance Index (SPI), which covers all Swiss stocks (including those of Liechtenstein); and the Swiss Bond Index (SBI), which measures the performance of CHF bonds with a minimum life of one year. A separate index is published for investment companies.

Regulatory Basis Including Listing Rules

The Admission Board is the securities listing body of SWX. It is responsible for taking decisions on admission and supervises listed issuers to ensure that they comply with their obligations.The Admission Board is made up of representatives of Swiss commerce and industry as well as SWX participants. 

The listing procedure followed by SWX is simple, fast and cost-effective. SWX is a self-regulating entity under the supervision of the Swiss Federal Banking Commission; governmental bodies are not involved in the listing procedure.

The formal listing procedure normally takes four weeks to complete. Swiss companies and foreign companies follow in principle the same procedure. Listing documents can be submitted in German, French, Italian or English.

SWX has different listing conditions, reporting requirements and listing procedures for the following listing categories:

• Main market 
• Investment companies 
• SWX New Market 
• Side market 
• Side market 
• Eurobonds 

The SWX New Market segment lists companies with specific characteristics, such as opening up new sales markets, using innovative procedures, developing new products or services. The aim is to make it easier for young companies to be listed on the exchange. The new regulatory framework came into force on 1 June 1999 in the form of supplementary rules to the rules governing the main market.

Listings on the side market are governed by the listing rules for the SWX side market; these rules do not contain any additional provisions on transparency beyond those laid down in the Swiss Company Law.

The rules for Eurobonds admitted for trading on SWX came into force on 31 July 1998. However, Eurobonds that are admitted for trading under the new rules are not considered as listed within the definition of the listing rules.

Trading and Settlement

In 1996 the first fully automatic trading, clearing and settlement system in the world was launched on the SWX, expanding liquidity considerably and narrowing the bid/ask spread for blue chips from 0,2% to 0,15 %. A single mouse-click initiates trading, payment, settlement and confirmation. This fully integrated process is based on the electronic system run by SWX Swiss Exchange, Swiss Interbank Clearing and SIS SegaInterSettle AG.

Electronic trading begins with the investor: member banks' investment advisors register incoming orders from their customers in their trading system. This data is forwarded to the trader and checked, or fed directly into the trading system by the trader. From here they go to the central exchange system of SWX, which acknowledges receipt of the order, assigns a time stamp to it and verifies its formal correctness.

Depending on the type of transaction, the data is also transmitted to data vendors (Reuters, Telekurs, etc). In the fully automated exchange system in use at SWX, buy and sell orders are matched according to clearly defined rules (so-called matching rules). 
Regardless of their size or origin, trading orders are executed on a price/time priority, i.e. in the order of price (first priority) and time received (second priority). 

Each trade triggers an automatic settlement through SIS SegaInterSettle and the Swiss National Bank (SNB).

The Jurisdictions with Stock Exchanges - Bermuda to Hong Kong
 

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