Security tokens
At the Luxembourg Stock Exchange (LuxSE), we place special emphasis on this new type of financial instruments that represents an innovative solution for capital markets.
Given the many questions surrounding 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.
The display of security tokens on LuxSE SOL not only offers enhanced visibility, but it also provides access to the official documentation of the securities, as well as facilitating the dissemination of indicative prices and securities data for this new form of financial instruments.
To guide issuers throughout the admission process for security tokens, we have produced guidelines for the registration of these innovative instruments on LuxSE SOL. These guidelines, which will evolve over time to reflect new legal and regulatory developments, also outline the additional information required from issuers of security tokens in regards to this new technology used to record, transfer and store securities.
Given the complex nature of security tokens, only experienced issuers and applicants with a proven track record can avail of this service. 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 on the Securities Official List.
In October 2023, LuxSE broke new ground by becoming the first exchange in the European Union (EU) to admit a financial instrument issued using distributed ledger technology (DLT) to trading on its regulated market. The admission of this landmark listing, which was followed by several other listings leveraging DLT technology, represents a natural step forward for LuxSE, reflecting our continued support for the digitalisation of capital markets.
In addition, financial instruments issued using DLT can also be admitted to trading on our Euro MTF market, offering issuers greater flexibility and choice.
