A covered warrant is a financial product that gives the holder the right, but not the obligation, to either buy (call) or sell (put) an underlying asset at a predetermined price (exercise price) on or before a certain date in the future (expiry date). Find out more about covered warrants.
A structured product is a financial instruments issued by banks with varying terms, payouts and risk profiles tracking the performance of an underlying asset which can be equity, index, commodity, currency or a basket. Find out more about structured products.
Since the PSM is not a regulated market as defined by the various different directives under the European Commission’s Financial Services Action Plan, a prospectus is not required for the admission of securities to the PSM; however, as the PSM is a market for listed securities, ‘Listing Particulars’ are required.
The UK Listing Authority (UKLA) (a division of the Financial Conduct Authority) is responsible for approving the listing particulars which are submitted by the issuer. The Exchange oversees the admission to trading of securities to the PSM.
Issuers with securities admitted to the PSM are required to comply with the:
• London Stock Exchange’s Admission and Disclosure Standards
• Relevant provisions of the Prospectus Rules (PR), the Listing Rules (LR), and the Disclosure & Transparency Rules (DTRs).
These rulebooks are not individual standalone documents and therefore must to be read together to determine their application. For instance, it might incorrectly be assumed that the DTRs do not apply as the PSM is not a regulated market as defined by European directives; however, certain DTR provisions are applied to the PSM securities via the Listing Rules – specifically LR 17 for debt securities and LR 18 for DRs.
Depositary receipts and debt securities including eurobonds, convertible bonds, exchangeable bonds and medium-term notes are potentially eligible for the PSM. For more details on this, please see Listing Rule 4.1.1.
Issuers wishing to transfer from Main Market to PSM are required to do the following:
1) Issue an announcement via RNS (or other Regulatory Information Service) stating the company's intention to transfer to PSM at least 10 business days before the transfer is to take place. This is to inform investors and provide them with sufficient notice.
2) Send a separate letter to each of: the Exchange’s Admissions Team and the UKLA’s Listing Applications team stating the following:
• that a transfer from Main Market to the PSM is to take place
• the date from which the transfer is to be effective
• the details of the issuer name
• the ISIN of the relevant securities
Admissions Team
admissions@lseg.com
London Stock Exchange
10 Paternoster Square
London
EC4M 7LS
Listing Applications
UK Listing Authority
The Financial Conduct Authority
25 The North Colonnade
Canary Wharf
London
E14 5HS
Issuers should note that the transfer of passported securities from the Main Market can only be made if the securities are admitted to the UKLA's Official List.
In theory debt can be listed within a week. Depending on the type of debt instrument the UKLA will provide the first set of comments within 4 days and 2 for any subsequent comments. The issuers are advised to contact both UKLA and the Exchange at the early stages of listing.
All fees relating to admission to trading to the PSM are detailed in our fees brochure. There is also a fees calculator designed to help you calculate the fees for depositary receipts admitted to the PSM.
To invest in retail bonds, you would go through a retail broker who is a member of the Order book for Retail Bonds. The list of which can be accessed by clicking here.
The list of retail brokers currently offering access to the Order book for Retail Bonds can be found by clicking here.
The bonds that are currently being offered on the Order book for Retail Bonds can be found by clicking here.
Bonds are tradeable securities, issued by a borrower (the bond issuer) in order to raise capital. Bonds represent a formal agreement between the issuer and the lender (the bondholder) that the issuer will repay to the lender the full amount borrowed plus interest over the lifetime of the bond.
This is the amount that the issuer will pay to the bondholder on maturity. The nominal value is also the amount on which the interest is paid to the bondholder.
The minimum size available to trade these bonds varies from bond to bond. Click here to search the list of bonds available. You can then click on the bond you are interested in where you will find the 'Minimum Denomination', this will tell you the minimum nominal amount in which you can trade the bond.
Coupon payments are paid to the private investor gross of tax.
All bonds currently admitted to the Order book for Retail Bonds are flagged as exempt from SDRT within the CREST settlement system.
Transfers of gilts and bonds are generally exempt from SDRT, however further information on the recent guidance provided by Euroclear UK & Ireland is available on the Stamp Duty Reserve Tax factsheet.
ISM is a specialist market aimed at professional investors. It is tailored to issuers of non-equity securities which, because of their nature, are normally bought and traded only by professional investors. Rules applicable to issuers seeking admission to trading of securities, or whose securities are admitted to trading, on ISM are set out in the ISM Rulebook.
The responses below are intended to assist users or prospective users of ISM on the application of the rules. The responses set out below should be regarded as illustrative only. Issuers should consult with Primary Market Regulation if in doubt about how the rules apply in a particular situation or to particular securities.
Unless otherwise defined, defined terms have the same meaning as in the ISM Rulebook.
In the case of an asset backed transaction, where there are five or fewer obligors, the expectation would be that audited financial information covering a two-year period would be provided on each of the obligors.
If there are any queries with this requirement, please bring this to our attention as soon as possible and submit an eligibility letter for our review.
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Admission Particulars (Standalones) |
Admission Particulars (Programmes) |
Pricing Supplements (Programmes established on ISM) |
Supplementary Admission Particulars |
OECD Sovereigns or their regional or local authorities, or public international bodies or non-profit making bodies |
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Eligibility Checklist |
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Information Checklist |
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We strive to respond to all derogation requests as quickly as possible. However, complex queries may take longer if we require further information. This should be factored into any transaction timetable. In any event, we should always be contacted at the earliest opportunity.
Separately, detailed provisions relating to the omission of information from admission particulars are set out in paragraph 7 of Section 2 of the ISM Rulebook.