Operational Guide. Admission of a retail bond to the Order book for Retail Bonds (ORB)

Transcription

1 Operational Guide Admission of a retail bond to the Order book for Retail Bonds (ORB) September 2014

2

3 Contents This factsheet provides an operational guide to the admission procedures for retail bonds on the Order book for Retail Bonds (ORB). The ORB market is a part of London Stock Exchange s Main Market. For a bond to be admitted to the Main Market the bond must also be admitted to the Official List by the UK Listing Authority (UKLA). Once the UKLA has approved the relevant documentation for a new retail bond, the bond will also have to meet the Exchange s Admission and Disclosure Standards in order to be admitted to trading.

4 14 August 2014 ORB Admission Operational Guide 1.0 Admission Process for ORB The London Stock Exchange Admissions team manages the admission process of all retail bonds being admitted to trading on the ORB. The Admissions team at the London Stock Exchange requires the following information to be submitted at least 11 business days prior to the target admission date of a new retail bond: An electronic copy of the Base Prospectus and the relevant Pricing Supplement or Final Terms document. These will need to have been approved by the UKLA. A copy of the relevant Board Minutes relating to the issue. A copy of the Regulated Information Service (e.g. RNS) announcement relating to the admission. The bond will require both an ISIN and SEDOL code to be allocated. Both codes are unique instrument identifiers. The London Stock Exchange s SEDOL Masterfile team can allocate SEDOL codes upon request. Please allow 48 hours notice. To request a SEDOL code you must submit the pricing supplement for the new bond to smfnewissues@lseg.com A completed ORB Form 1, available at The application should be submitted directly to admissions@lseg.com, indicating that the application is for an admission to the ORB. 2.0 Admission Documentation ORB Form 1 The London Stock Exchange Admissions team requires that a completed ORB Form 1 be submitted for all retail bonds admitting to ORB. The ORB Form 1 is a Microsoft Excel document which can be downloaded at This form collates the necessary reference data required by the Admissions team so that the bond can be set up for trading on the electronic trading platform. This table documents how to fill in the ORB Form 1. Highlighted in blue are the mandatory fields. 3.0 Sign and Send To complete the ORB Form 1 the document confirmation tab has to be signed and dated by the Director of the company issuing the bond. Once completed the ORB Form 1 application should be submitted directly to the London Stock Exchange s Admissions team at admissions@lseg.com 4

5 14 August 2014 Field Type A=Alphabet N=Numeric No. of Characters Permitted Values ISIN Code A,N 12 An International Securities Identification Number (ISIN) uniquely identifies a security Instrument short name Quality financial instrument No user input required Class financial instrument N for corporate bonds / 304 for gilts Denomination currency A 1 ISO code of currency Type of index inflation Date of index inflation Tax system No user input required Date of index inflation Modify following business day Issue date N 8 Identifies the issue date of the bond onto ORB. Date format yyyymmdd Accrued interest start date N 8 Identifies the date from which the accrued interest calculation starts. Date format yyyymmdd Maturity date N 8 Identifies the maturity date of the bond. Date format yyyymmdd 5

6 14 August 2014 Field Type A=Alphabet N=Numeric No. of Characters Permitted Values Interest end date N 8 Same as maturity date. Date format yyyymmdd If a redemption date is not applicable use Period of coupon N 3 Coupon Frequency expressed in number of months: 12 ANNUAL / 6 - SEMI ANNUAL / 3 - QUARTERLY Redemption date Type of redemption No user input required Coupon type A 1 F - Fixed / V - Variable Minimum Denomination N 10,2 As specified in the Final Terms. Up to 10 digits and two decimal places are permitted. Nominal value Amendment coupon flag No user input required Ex coupon date N 8 For corporate bonds no user input required Payment coupon date N 8 Identifies the next coupon date. Date format yyyymmdd Coupon value N 3,2 If the coupon payment on a debt issue is 5% and is paid annually, then 5 should be entered in this field. If however, the coupon is paid semi-annually, the coupon must be divided by 2 and the value 2.5 is to be entered. If the coupon is paid quarterly, then divide the coupon by 4 and 1.25 should be used. Up to three digits and two decimal places are 6

7 14 August 2014 Field Type A=Alphabet N=Numeric No. of Characters Permitted Values permitted. Code convention calculate accrual N ACT/ACT / 16 - GILTS ACT/ACT / 6 - NO ACCRUAL / 12 - ACT/ACT ISMA / 13 - ACT/360 ISMA / 14-30E/360 ISMA / 15 - ACT/365 ISMA Settlement system Start date of settlement End date of settlement No user input required Market identifier A 4 See market segment and sector description. Insert the relevant segment code. Start date of trading N 8 Same as issue date yyyymmdd End date of trading N 8 Same as maturity date yyyymmdd Alphanumeric code A,N 6 TIDM code First coupon payment date N 8 Identifies the next coupon date. Date format yyyymmdd SEDOL A,N 6 To be allocated by application to smfnewissues@lseg.com Sector A 4 See market segment and sector description. Insert the relevant sector code Reference price N 3,2 Current estimated market price or fair value of the bond 7

8 14 August 2014 Field Type A=Alphabet N=Numeric No. of Characters Permitted Values Market Maker A Name of registered market maker for this security Hearing date N 8 Date format yyyymmdd Admission date N 8 Date format yyyymmdd Full legal name of issuer A,N Amount and full description of each class for which application is now being made A,N Amount being admitted and a full description of the instrument (e.g. GBP 10,000,000 7% Sterling Fixed Rate 2018) 4.0 Market segment and sector description Market segment - The ORB market is made up of three market segments: Gilt edged-securities are available in the ORB Gilts segment UKGT ; other UK fixed interest securities are available in the ORB Corporate and Other Bonds segment UKCP ; and the International Corporates INCP segment. The UKGT segment is split into two sectors. The UKCP and INCP are split into five and three sectors. This is to allow for variations in price monitoring thresholds, market maker obligations and quoting conventions for clean or dirty pricing. Market Sector - Within the market segments (UKGP, UKCP and INCP) there are a number of market sectors providing different options on the maximum spread requirements for market maker quoting obligations. 8

9

10 Useful Contacts Listing UKLA Global Debt Group Telephone +44 (0) (option 6) Admission to trading LSE Admissions Team Telephone +44 (0) Further information Full details of the new electronic Order book for Retail Bonds are available on the London Stock Exchange website at If you would like to know more about this new trading service or are interested in becoming a market partner, please contact: Order book for Retail Bonds Fixed Income - London Stock Exchange 10 Paternoster Square, London EC4M 7LS Telephone +44 (0) bonds@lseg.com London Stock Exchange plc 10 Paternoster Square London EC4M 7LS Telephone +44 (0)