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Global Exchange Market opens for Investment Funds

14 April 2016

The Irish Stock Exchange ("ISE") has expanded the Global Exchange Market ("GEM") to include listing of regulated and unregulated investment funds. Up until this point, investment funds could only list on the Main Securities Markets ("MSM") of the ISE.

What is GEM?

GEM is recognised as a Multilateral Trading Facility ("MTF") under Europe’s Markets in Financial Instruments Directive ("MiFID") and is authorised by the Central Bank of Ireland ("CBI"). Therefore, EU securities legislation that applies to regulated markets (e.g. Prospectus, Transparency and Statutory Audit Directives) generally will not apply to GEM.

GEM has been in existence since 2009 and is currently the number one global exchange for listing debt securities with over 8,000 debt securities listed.    

MSM versus GEM

  • Less onerous on-going requirements for investment funds listed on GEM that are regulated by the competent authority of an EU Member State such as the CBI.
  • MSM is a "regulated market" as defined in Article 4(1) point 14 of Directive 2004/39/EC. GEM is an "exchange regulated" market as defined in Article 4(1) point 15 of Directive 2004/39/EC.
  • Investment funds listed on GEM will not have to adhere to Directive 2014/56/EU on statutory audits of annual accounts (the "Directive").   The Directive is set to be implemented into national law on 17 June 2016 and requires Public Interest Entities ("PIEs") listed on a regulated market, such as the MSM, to rotate their auditors after a 10 year period or up to a possible 20 years if a public tender takes place on expiry of the 10 year period. There is also an option for a maximum 24 years where a joint auditor is appointed.
  • Circulars for investment funds regulated by the competent authority of an EU Member State are no longer required to be prior approved by the ISE.
  • For the avoidance of doubt, investment funds can list on the MSM or the GEM.

Transfer and Costs

Transfer of listing from the MSM to the GEM will be permitted by way of announcement which will be subject to pre-approval by the ISE. Announcements will be approved within two business days. Costs to list on the GEM are identical to that of the MSM.

Further Information

For further information relating to the above, please speak to your usual Maples and Calder contact.


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