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Security tokens
Security tokens have recently garnered significant interest in financial markets. At the Luxembourg Stock Exchange (LuxSE) we place a special emphasis on security tokens representing debt financial instruments and introducing a new solution for debt capital markets.
What are security tokens?
Security tokens represent financial instruments that are issued on a distributed ledger, allowing for a fully digital issuance and servicing process. Due to their innovative characteristics, security tokens have the potential to significantly improve efficiency and transparency, and make transactions safer and more resilient – all while offering benefits similar to traditional securities.
Security tokens now admitted on LuxSE SOL
At LuxSE, we strive to stay at the forefront of technological innovation, shaping the future of capital markets by providing our customers and partners with comprehensive services and solutions to benefit from new opportunities and meet their evolving business needs.
The display of security tokens on LuxSE SOL will not only provide enhanced visibility but also facilitate the dissemination of indicative prices and securities data for this new form of financial instruments.
As such, starting from January 2022, LuxSE admits security tokens to be registered onto the Securities Official List (LuxSE SOL), a section of our Official List. The security tokens will not be admitted to trading on LuxSE.
The display of security tokens on LuxSE SOL will not only provide enhanced visibility but also facilitate the dissemination of indicative prices and securities data for this new form of financial instruments.
As such, starting from January 2022, LuxSE admits security tokens to be registered onto the Securities Official List (LuxSE SOL), a section of our Official List. The security tokens will not be admitted to trading on LuxSE.
Bringing your security token to LuxSE SOL
To guide issuers throughout the admission process for security tokens, we have produced guidelines for the registration of these innovative instrument on LuxSE SOL.
These guidelines, which will evolve over time to reflect new legal and regulatory developments, also define the additional information that issuers of security tokens need to provide that is specific to this new technology used to record, transfer and store securities.
These guidelines, which will evolve over time to reflect new legal and regulatory developments, also define the additional information that issuers of security tokens need to provide that is specific to this new technology used to record, transfer and store securities.
Scope
Given the complex nature of security tokens, only experienced issuers and applicants with a proven track record can avail of this new service. In addition, only financial instruments, and more specifically debt financial instruments issued as security tokens can be registered on LuxSESOL at this stage. Securities must be priced in fiat currency and offers must be limited to qualified investors or issued in wholesale denominations. In order to be considered for registration onto LuxSE SOL, security tokens must respect both the LuxSE SOL Rulebook as well as the Guidelines for the registration of DLT Financial Instruments onto the Securities Official List.
More information
Given the many questions surrounding distributed ledger technology (DLT) and blockchain, the Commission de Surveillance du Secteur Financier (CSSF) – Luxembourg’s financial regulator – has published a whitepaper sharing its advice related to the design or implementation of a project using DLT.
Recent admissions
Security token by Asian Infrastructure Investment Bank
Security token by Societe Generale
Security token by the World Bank (International Bank for Reconstruction and Development)
Security token by European Investment Bank
Security token by European Investment Bank
Security token by European Investment Bank
Security token by Societe Generale SFH
Security token by Societe Generale SFH
Security token by Societe Generale
Beyond the bell
Fintech
