A law establishing a stock exchange in Luxembourg was passed on 30 December 1927.Luxembourg Stock Exchange#cite note-7| The company was incorporated as Société Anonyme de la Bourse de Luxembourg on 5 April 1928Luxembourg Stock Exchange#cite note-History-8|, with an initial issue of 7,000 shares, each valued at 1000 francs.Luxembourg Stock Exchange#cite note-9|Luxembourg Stock Exchange#cite%20note-2|Luxembourg Stock Exchange#cite note-10| In March 2014, LuxSE moved to its new headquarters – the Aurora building– erected in line with the green construction concept. In 2015, the exchange celebrated the 10th anniversary of its Euro MTF Market.
Agreements with other exchanges
In November 2000, LuxSE signed a cooperation agreement with Euronext. As part of the agreement, trades in Luxembourg are generated through Euronext's Universal Trading Platform allowing existing Euronext members to activate a cross-membership status on LuxSE.
Exchange members
As of August 2016, the LuxSE has 53 members of which 28 have a trading status. There are nine approved market makers.
Bonds
The Luxembourg Stock Exchange specialises primarily in the listing of international bonds, in which it ranks first in Europe with 25,831 debt securities listed as of August 2016.Luxembourg Stock Exchange#cite note-Luxembourg Stock Exchange Statistics page-1| In 1963, with the issue of Italian Autostrade bonds, it became the first exchange globally to list a Eurobond, an international bond denominated in a currency not native to the country where it was issued.Luxembourg Stock Exchange#cite note-PwC-5|Luxembourg Stock Exchange#cite%20note-3|Luxembourg Stock Exchange#cite%20note-3|Luxembourg Stock Exchange#cite note-2| To this day, Luxembourg has maintained a dominant position in European bond issues with approximately 40% of all cross-border securities in Europe listed in Luxembourg.Luxembourg Stock Exchange#cite note-PwC-5|Luxembourg Stock Exchange#cite%20note-4|Luxembourg Stock Exchange#cite%20note-4|Luxembourg Stock Exchange#cite note-3| Over 70 countries list at least some of their sovereign debt in Luxembourg. Luxembourg is also a preferred debt market for supranational entities such as the European Bank for Reconstruction and Development, European Commission, European Investment Bank and World Bank.Luxembourg Stock Exchange#cite note-PwC-5| In 2007, the LuxSE was the first stock exchange in the world to list a bond labelled green, i.e. a "climate awareness bond" Luxembourg Stock Exchange#cite note-PwC-5|Luxembourg Stock Exchange#cite%20note-5|Luxembourg Stock Exchange#cite%20note-5|Luxembourg Stock Exchange#cite note-4| issued by the European Investment Bank. In 2015, the Exchange listed green bonds worth $11.7 billion, followed by a $9.6 billion-worth issuance in the first seven months of 2016.
Luxembourg Green Exchange
In September 2016, LuxSE became the first stock exchange globally to introduce a platform for green financial instruments – the Luxembourg Green Exchange. LGX gathers issuers that dedicate 100% of the raised funding to green investments. It requires green securities to adhere to strict eligibility criteria, including:
Declaring the security green, based on the ICMA GBP or CBI taxonomy, or equivalent. During the application process the issuer has to clearly state the intended green nature of the security.
Use of proceeds. Clear disclosure that the proceeds are exclusively used for financing or refinancing projects that are 100% green, according to the GBP or CBI eligibility taxonomy.
Ex-ante review and ex-post reporting. Issuer's commitment to provide both independent external review and ex-post reporting.
As of January 2017, LGX displays green securities worth over EUR 45 billion, including the world's first sovereign green bond issued by the Republic of Poland. As of January 2018, LGX accounted for 50% of the world's green bond market, which represent 1% of the global debt market.
Equities
The Luxembourg Stock Exchange's main equity index is the LuxX Index – a weighted index of nine most valuable stocks by free floatmarket capitalisation.Luxembourg Stock Exchange#cite note-LuxX Index-6| The index was fixed at 1,000 on 4 January 1999, the first trading day after Luxembourg adopted the Euro.Luxembourg Stock Exchange#cite note-LuxX Index-6|Luxembourg Stock Exchange#cite%20note-11|Luxembourg Stock Exchange#cite%20note-11|Luxembourg Stock Exchange#cite note-9| The nine companies currently composing the listing are:
