Pictured at the Luxembourg Stock Exchange’s annual general meeting on 16 June, from left to right: Arnaud Jacquemin (member of LuxSE’s board of directors), Françoise Thoma, (vice-President of LuxSE’s board of directors), Alain Kinsch (president of LuxSE’s board of directors), Julie Becker (CEO of LuxSE) and Pierre Schoonbroodt (CFO of LuxSE). Photo: Luxembourg Stock Exchange

Pictured at the Luxembourg Stock Exchange’s annual general meeting on 16 June, from left to right: Arnaud Jacquemin (member of LuxSE’s board of directors), Françoise Thoma, (vice-President of LuxSE’s board of directors), Alain Kinsch (president of LuxSE’s board of directors), Julie Becker (CEO of LuxSE) and Pierre Schoonbroodt (CFO of LuxSE). Photo: Luxembourg Stock Exchange

The Luxembourg Stock Exchange (LuxSE) held their annual general meeting on 16 June, at which they presented their financial results for the financial year ending 31 December 2022.

2022 was a record year for the Luxembourg stock exchange, which saw operational revenues of €38.2m (an increase of 0.3% compared to 2021), with an “exceptional” net profit of €170m, said a press release published on 16 June.

“The exceptional financial results for 2022 are mainly driven by FE fundinfo’s acquisition of Fundsquare,” said , CEO of LuxSE. “Over the years, as part of the LuxSE Group, Fundsquare grew into a high-performing company with a unique position in the fund industry. In an environment shaped by increasing competition and market consolidation, Fundsquare needed to be part of a bigger group to reach its full potential and FE fundinfo has the resources and network to make sure Fundsquare can expand internationally. As a shareholder of FE fundinfo, LuxSE remains involved in the combined group.”

Total of 40,674 listed securities

Despite high inflation, increased interest rates and a drop in overall global bond issuances in 2022, LuxSE reported a total of 40,674 listed securities, an increase of 7% year-on-year. It saw 12,346 new securities, a decrease of 3% compared to new listings in 2021, said the press release.

Sustainable bonds raise €207bn for green and social investments

Green finance, sustainable finance for emerging markets and gender finance were some of the key priorities for the Luxembourg Stock Exchange in 2022, which signed memorandums of understanding with counterparts in Cabo Verde, Rwanda, and the West-African regional exchange BRVM, noted the press release.

535 new green, social, sustainability and sustainability-linked bonds were displayed on the Luxembourg Green Exchange (LGX) last year, down 4% compared to 2021.

These new bonds, which contribute to green and social outcomes globally, raised €207bn. Although this dropped 16% year-over-year, because of the overall decrease in sustainable bond issuances around the world in 2022, the LuxSE ended up with an increased market share.

At the end of 2022, the LGX included nearly 1,600 sustainable bonds, raising a total of €830bn for sustainable investment projects.

“Our vision is to become the world’s leading sustainable finance and information solution provider, offering market participants a broad array of solutions going beyond traditional financial products and services,” said , president of the board of directors of LuxSE. “The strategy centres on accelerating growth in our core businesses of listing, trading and data, while capitalising on LuxSE’s expertise in ESG and experience in DLT [digital ledger technology], and exploring new domains such as private markets.” The LuxSE started to admit security tokens in January 2022.

“We will focus on organic growth but also explore opportunities for partnerships, joint ventures or acquisitions,” said Kinsch.

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