ISM Rulebook update – Fixed income issuers

• London Stock Exchange’s amended International Securities Market Rulebook for fixed income issuers came into effect on 30 June 2025.
• The amendments include the introduction of the ISM Express Route for issuers as well as the removal of the need for a sukuk issuer to apply for a derogation from the ISM eligibility requirement that the issuer must have produced audited financial statements covering two years.
• Under the ISM Express Route, eligible issuers may benefit from reduced disclosure requirements when seeking admission to ISM.

Following a consultation the London Stock Exchange has published an updated version of the International Securities Market (ISM) Rulebook, effective from 30 June 2025.

Many of the amendments are administrative or clarificatory in nature or changes that brought ISM into line with our other markets and international markets. The other new amendments to the ISM Rulebook are as follows:

• Amendment to paragraph 8.2 of Section 1 and paragraph 6.5(3) of Section 4 to reflect the fact that in sukuk transactions, the underlying obligor will have published financial statements which cover at least two years. This makes it unnecessary to also require the issuer to meet these obligations. This change means that sukuk issuers no longer need to apply for a derogation from the requirements.
• Amendment to the definition of “suitable market” and any consequential changes are proposed to enable issuers admitted to a market regulated and overseen by an IOSCO member to utilise the Express Route review process as set out in Schedule 9 of the ISM Rulebook. IOSCO is the international body that brings together the world’s securities regulators and is recognised as the global standard setter for securities regulation. IOSCO membership regulates more than 95% of the world’s securities markets in more than 130 jurisdictions. This initiative is designed to streamline the review process for issuers on ISM.

This was the first of two consultations that we will undertake this year to amend the ISM Rulebook. The second consultation will highlight changes we propose to make to the ISM Rulebook as a result of the changes made by the FCA to the new Prospectus Rules: Admission to Trading on a Regulated Market sourcebook (PRM).

The updated Rulebook and supporting materials, including a factsheet outlining the routes to market on ISM, is available on the Raise finance | London Stock Exchange.

If you have any questions or need any additional information, please contact the fixed income team at the London Stock Exchange.