13th xbrl international conference may 16-19, 2006, madrid luxembourg stock exchange building an...

13th XBRL International Conference

May 16-19, 2006, Madrid

Luxembourg Stock Exchange

Building an efficient gateway for international securities

13th XBRL International Conference, May 16-19, 2006, Madrid

2 Reproduction is forbidden unless duly authorized by the Luxembourg Stock Exchange

Agenda

The Luxembourg Stock Exchange: Gateway to the financial

world

The New European Financial Reporting Framework

Building a new reporting framework : “e-file”

Leveraging from standard-based reporting

within a Luxembourg perspective



The Luxembourg Stock Exchange : Gateway to the financial world

• Founded in 1928 as a for-profit organization and still an independent exchange

• Market for Luxembourg shares• A partnership agreement with Euronext (cross membership)• World leader in listing of international bonds and UCITS• A network of domestic and international banks, law firms, issuers, etc



First Eurobond listed on theLuxembourg Stock Exchangeon 17 July 1963



Dec’ 2005 Dec’ 2004 Dec’ 2003 Dec’ 2002

Bonds 26,782 24,292 21,285 18,883EUR 14,768 12,458 9,781 7,613 USD 7,661 7,726 7,282 6,804Other 4,353 4,108 4,222 4,466

Shares 279 261 268 268 Domestic 44 47 50 55 Foreign 235 214 218 213

UCIs 6,172 6,055 5,754 5,798 Luxembourg 5,981 5,876 5,568 5,601 Foreign 191 179 186 197

Warrants 2,821 2,414 1,795 1,537

Total 36,054 33,022 29,102 26,486


Listings on the Luxembourg Stock Exchange



.

LUXEMBOURGLUXEMBOURGLUXEMBOURGLUXEMBOURG


4,200 issuers (100 countries, 13 supranationals)




Given the number of issuers and the wide variety of listed securities, requirements in terms of information to be conveyed between all stakeholders are colossal.



CCLux (Centrale de Communications Luxembourg) was launched in 1995 by the Luxembourg Stock Exchange and the Association of Investment Funds

Create a single communication channel between the industry and the supervisory authority and rationalize the communication flows

Provide the fund industry with the most up-to date,

comprehensive and reliable data on Luxembourg-domiciled funds

Promote the Luxembourg fund industry through enhanced visibility and transparency.

In May 2002 CCLux became a 100 percent subsidiary of theLuxembourg Stock Exchange



CCLux

Collects net asset values, financial data, legal reports ...

Manages production of structured data products

Provides electronically data to financial data vendors, financial press, rating agencies, supervisory bodies ...

Information available on CCLux web site www.cclux.lu



Before 1998

CCLux today:

• Unique communication channel for the legal reporting (from fund administration to local authorities)

• Database with all the Luxembourg-domiciled funds

• 99% of the Luxembourg funds use CCLux for the dissemination of their NAVs

• Communication network for the key players of the fund industry

• Full subsidiary of the Luxembourg Stock Exchange – strategic vehicle



CCLux

14,500 NAVs collected every day, ie 95% of the NAVs of Luxembourg investment funds,

more than 20,000 prospectuses and financial statements are on line,

consultation portal is accessible worldwide with 1,500 registered users,

partners : 81 fund administrations; 18 data flow subscribers (data vendors and media),

data is disseminated worldwide through data terminals and data

vendors’ networks.



New European Financial Reporting Framework

• Financial Services Action Plan (FSAP) includes a list of directives redesigning the landscape of the European Financial industry and Capital Markets;

• European Directives i.e. prospectus, transparency for listed company, MiFID,,…ensure the development of a single securities market for new issues and trading of securities;

• The efficiency of the financial reporting value chain, the access and the transparency of the information are increasingly becoming key factors in the management of financial institutions.



New European Financial Reporting Framework

Financial Services Action Plan / securities-related EU directives• Prospectus • Market abuse• Transparency • MiFID• IFRS• Takeover• Some aspects concern also the UCITS



Building a new reporting framework : e-file

Numbering Agency

CCLux

Local FSA

Luxembourg Stock Exchange

Fund administration

Lawyers

Listing agents

Transfert agents

e-file was developed to facilitate the connectivity of financial institutions in the transmission of financial documents and data



Filing entity CSSF

File

Approval of a new instrument

Prospectus draft 1

Prospectus draft 2

Final prospectus

File

Approval of a new instrument

Prospectus reading

Comments are sent

Update of file progress

Close + publication of prospectus

Building a new reporting framework : e-file Principles




More e-file

Critical to collection data electronically on a timely and secure way to ensure the success of listing procedures

Collect non-structured and structured data linked to the business processes

Transparency & efficiency of the listing process

Access to information : Consultation portal gives access to a complete database of listed securities




Basic e-file functionalities : Electronic Filing• Messaging• Encryption, Authentification• Automation (STP)

Electronic form management & validationStr

uct

ure

d r

eport

ing

wit

h v

alid

ati

on o

n

exte

rnal data

base

sSecu

riti

es

and

corp

ora

te e

vent

filin

g

Sta

ndard

ised r

eport

sXBRL

report

s, …

Filin

g o

f docu

ments

List

ing &

appro

val fo

r new

secu

riti

es,

…

Filin

g o

f docu

ment

base

d

report

s A

nnual re

port

s, …

Securities

• Alerts • Types of filing procedures• Workflows

Referential layer Issuers…

Structured communication

Non structured communication

Business process overview



Leveraging from standard based reporting : XBRL

Added values of XBRL for Capital Markets :

Facilitate the collection and dissemination of structured data from listed companies

Harmonize and improve the exchange of financial information and structured data of the listed companies between stock exchanges (companies with multiple listing market place)

Enhance the access and comparison of the financial information of listed company via web consultation portal

Fit particularly well in the framework of the new directive about the harmonisation of the transparency obligations of listed companies:

• increase frequency of reporting

• harmonise financial content

• set up electronic centralised data consultation platform



Leveraging from standard-based reporting : XBRL

Promoters / Fund administration

Stock Exchange CSSF Statec

Facilitate the compliance exercise

Comparison and analysis Tools

Allow different tools : from structured forms to system to system

Improve analysis decision-making process

Collecti

on

Consultation

Diff

usio

n

Exchange (data & doc.)

Analysts

Audit

Distributors

Data vendors

Banks

Insurance cies

All Luxembourg registered companies

Periodic reporting

Financial Reporting IFRS (per

sector / industry)

Centrale des bilans

Investors



…within a local perspective at Luxembourg

• Building of a Luxembourg jurisdiction is on-going at Luxembourg

• XBRL will support the future regulatory banking reporting (COREP / FINREP) by 2008;

• Opportunity for financial institutions to leverage around the new reporting • reduced regulatory burden • enhance data quality



For further information...

www.bourse.lu

11, avenue de la Porte-NeuveB.P. 165L-2011 Luxembourg

Tel. : (+352) 47 79 36-1Fax : (+352) 47 32 98

[email protected]

www.cclux.lu

11, avenue de la Porte-NeuveB.P. 165L-2015 Luxembourg

Tel. : (+352) 47 79 36-581Fax : (+352) 47 79 36-204

[email protected]

13th xbrl international conference may 16-19, 2006, madrid luxembourg stock exchange building an...

Documents

communications luxembourg

luxembourg perspective

luxembourg fund industry

luxembourgdomiciled

international securities

independent exchange

international banks

listing of international