Bourse de Luxembourg - paperJam

MembershipGuidelines for membershipThe regulatory frameworkTrading on the Luxembourg Stock Exchange may be performed only bythe members duly authorised to trade in this market. Since its inception,the Luxembourg Stock Exchange has granted approval to trade in themarket to two types of persons/members, i.e. on one hand to creditinstitutions and on the other hand to brokers.The Investment Services Directive allows the investment firms authorisedin their country to provide certain investment services to join theLuxembourg Stock Exchange without being required to operate fromLuxembourg. Since January 1, 1996 an investment firm from one membercountry of the European Union may offer its services either through abranch or by applying the freedom of services in other countries of theEuropean Union, provided it has been duly authorised by the authorities ofits country of origin. The same principles also apply to the creditinstitutions originating from the same countries of the European Union inaccordance with the second Banking Directive, which has introduced theEuropean passport concept for the banks.As of November 16, 2000, Euronext market undertaking membersqualifying for the European passport may have direct access to theLuxembourg Stock Exchange, within the framework of theEuronext/Luxembourg Stock Exchange cooperation agreement.Luxembourg Stock Exchange members may have direct access to theEuronext market undertaking.Application for membershipAdmission to the Luxembourg Stock Exchange covers both the member,whether it is a natural person or a legal entity meeting the requirements of theInvestment Services Directive, and the persons who shall represent theauthorised members and act as liaison officers between the member and theStock Exchange, or as trading managers supervising trading in the market.The members shall be credit institutions or investment firms granted anauthorisation given by the competent authorities of their home country andcovering at least the services listed below:• execution of orders in the financial instruments admitted to listing onthe Luxembourg Stock Exchange;• trading in these instruments on their own behalf.In order to be granted and maintain membership status, applicants shallmeet a variety of requirements in terms of reliability, expertise, reputationand capital.24FactBook 2004