Home / CY AIF Law of 2018 / PART IV LISTED AIFs / [102] Conditions for the listing of AIF units in a secondary market, for trading.

102. Conditions for the listing of AIF units in a secondary market, for trading.

(1) By way of derogation from the provisions of article 101, the listing of AIF units in a secondary market for trading requires-

(a) either a decision taken by the external manager of the AIF or the AIF, in case it is internally managed, or

(b) a decision taken by the operator of the market, in case the secondary market is a multilateral trading facility.

(2) In the case of paragraph (b) of section (1), the operator of the multilateral trading facility shall, immediately after taking the decision, inform the AIF in writing about its decision to list the AIF units in that market.

(3) (a) Without prejudice to the legislation and the rules governing the specific market, as well as the relevant law which applies to the AIF and the AIF’s fund rules or instruments of incorporation, the traded AIF shall designate specifically authorised persons who are entitled to submit, directly to the AIF, an application for the issue or redemption of primary AIF units.

(b) Only the specifically authorised persons designated by the AIF in accordance with paragraph (a), shall be entitled to submit, directly to the AIF an application for the issue or redemption of primary AIF units.

(c) Without prejudice to the applicable legislation, the specifically authorised persons designated by the AIF in accordance with paragraph (a) shall carry out buy or sell transactions of AIF units with investors.

(4) (a) The traded AIF shall appoint at least a special negotiator, who takes all appropriate measures, so that the trading price of the units does not deviate significantly from the net asset value of the AIF and the indicative Net Asset Value of the AIF.

(b) There shall be no significant deviation of the price where the difference between the trading price of the units and the net asset value of the AIF and the indicative Net Asset Value of the AIF, taking into consideration the characteristics of the assets of the AIF and of the secondary market where its units are traded, does not exceed 5%.