In choosing to join the Professional Securities Market, companies are able to admit any type of debt security or depositary receipt, including those carrying a right to convert or acquire equity.
Admitting securities to the PSM involves a two-stage process. In the first instance, the issuing company submits ‘listing particulars’ to the UK Listing Authority for approval and admission to the Official List; simultaneously, the company applies to the London Stock Exchange for admission of its securities to trading on the PSM.
Issuers seeking admission to the PSM are subject to the relevant sections of the Exchange’s Admission and Disclosure Standards
Depositary receipts (DRs) are negotiable certificates that represent ownership of a given number of a company’s shares and can be listed and traded independently from the underlying securities.
DRs are typically held in US dollars and issued by a depositary bank. Several forms of DRs can be listed and traded in London, including Global Depositary Receipts (GDRs) and American Depository Receipts (ADRs).
Admitting DRs to the PSM involves a two-step, simultaneous process. A company submits its ‘Listing Particulars’ to the UKLA, while also applying to the Exchange for admission of its DRs to trading on the PSM.
All DRs admitted to the PSM are traded on the International Order Book (IOB), the world's leading electronic order book for DRs.
Listing debt on the PSM
The London Stock Exchange is one of the world’s major centres for the issuing and listing of all types of debt securities. The PSM accommodates a range of securities from simple Eurobonds and credit-linked notes to complex asset-backed issues, high yield bonds and convertible or exchangeable bonds.
The PSM permits debt securities of any denomination under a wholesale regime. This is particularly useful for professional investors who want to pursue a debt listing.
The PSM is a global listing venue attracting investment not only from the UK, but also from many other locations in Europe, Asia, Latin America and Australia.
Many investors can only buy debt instruments that are listed on a Recognised Investment Exchange. As Europe's largest and the world's most international financial market, it is the Exchange's role to provide efficient and well-regulated markets for both bond issuers and investors.