The 41st edition of LuxSE’s “stock exchange day 2024” took place at the Philharmonie on June 19, with “rethink local, unlock markets,” as a theme. Guest speakers offered a stimulating perspective on current capital market activities, identifying gaps, and exploring potential developments to enhance financing for Luxembourg and European companies.
The discussions emphasized making Europe the best place to invest and grow, fostering an inclusive financial ecosystem from venture capital to IPOs, and enhancing scaling-up and listing opportunities for SMEs.
“The Luxembourg Stock Exchange is a solid system, dedicated to competitiveness and sustainability.”
Gilles Roth, the minister of finance.
The role of stock exchanges in helping companies list and grow, coupled with improving financial literacy and harnessing the potential of youth as retail investors, were underscored as critical components for the future competitiveness of Luxembourg’s financial center.
“The annual Stock Exchange Day has been a key event in Luxembourg’s financial center for 41 years now. This year, guided by our theme of ‘Rethink local, unlock markets’, we wanted to ignite new thinking about how we can work together across the financial ecosystem to increase the scope of activities in the Luxembourg financial center,” said Julie Becker, CEO of LuxSE. Despite the challenging macroeconomic and geopolitical environment, LuxSE reported impressive financial results for 2023. The stock exchange saw a 7% year-over-year growth in operational revenues, reaching Є40.8m, and a net profit of Є10.6m, driven by increased activity in listing, data, and trading.
Exploring untapped opportunities
Expanding trading activities in Luxembourg requires mobilizing the entire financial ecosystem. This expansion would not only boost local economic activity but also align with the ambitions of the Capital Markets Union and the EU retail investment strategy. Increased trading could solidify Luxembourg’s position as a critical hub in European and global financial markets.
LuxSE’s advancements in AI solutions and digital transformation of its core listing system present significant opportunities. Embracing these technologies can streamline operations, enhance security, and improve service offerings, making Luxembourg a leader in innovative financial services.
Enhancing cross-border collaboration with other financial centers can unlock new markets and opportunities. By promoting partnerships and alliances, Luxembourg can extend its reach and influence, providing more opportunities for growth and investment. “To be able to discuss what this and other opportunities could bring to Luxembourg’s capital markets with public officials, financial decision-makers and business leaders, was an inspiring opportunity in itself,” said Becker.
Broadening debt capital markets
LuxSE has maintained its role as the reference exchange for sustainable securities. By continuing to promote and develop sustainable finance initiatives, Luxembourg can attract more green investments, reinforcing its reputation as a center for responsible and sustainable financial practices. With a 13% increase in new listings in 2023, LuxSE has demonstrated its capability to grow its market share in international bonds.
Further broadening the debt capital markets can attract more issuers and investors, diversifying the financial products available and increasing market liquidity. “Take trading, for example. Expanding this area will require a mobilization of the entire financial ecosystem. However, not only will increased trading activity bring benefits at a local level but it will also contribute to the ambitions of the Capital Markets Union and the EU Retail Investment Strategy,” said Becker.
