Exchanges prepare to deregulate to protect Eurobond

EU stock exchanges are taking action to stop issuers deserting them because of cost increases caused by the impending Prospectus Directive.

The stock exchanges in London and Luxembourg have struck back in their battle with non-EU exchanges for domination of Eurobond listings once the EU’s Prospectus Directive takes effect on July 1.

They have both unveiled a strategy for dealing with competition from rivals, several of which aim to attract non-EU issuers by offering a chance to avoid new EU regulation.

Both London and Luxembourg propose to sidestep the parts of the Prospectus Directive that are unappealing to issuers.

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